Glossar

Risks  arising  from  the  breakdown  of  the  entire  system,  rather  than  the failure of individual parts. They are characterised by modest tipping points combining indirectly to produce large failures with cascading of interactions of physical and transition risks (contagion), as one loss triggers a chain of others, and with systems unable to recover equilibrium after a shock. An example is the loss of a keystone species, such as sea otters, which have a critical  role  in  ecosystem  community  structure.  When  sea  otters  were hunted to near extinction in the 1900s, the coastal ecosystems flipped and biomass production was greatly reduced.

Twin transformation refers to the simultaneous and integrated implementation of digital and sustainable transformation within companies. The goal is to promote environmental sustainability through the use of digital technologies while increasing economic efficiency at the same time.

The TCFD is improving the disclosure of climate-related financial information to help investors assess risks.

Tipping points are critical thresholds in complex systems that can trigger sudden changes.

Tipping points are critical thresholds in the Earth system, the exceeding of which leads to serious and often irreversible environmental changes.

Risks  that  result  from  a  misalignment  between  an  organisation’s  or investor’s strategy and management and the changing regulatory, policy or societal landscape in which it operates. Developments aimed at halting or reversing   damage   to   the   climate   or   to   nature,   such   as   government measures,  technological  breakthroughs,  market  changes,  litigation  and changing consumer preferences can all create or change transition risks.

Upstream emissions are emissions caused by a company's supply chain, from procurement to use.

The Urban Heat Island effect shows higher temperatures in cities compared to rural areas.