This is a Hong Kong-focused practical guide. Sources and limitations are listed at the end of the page.
Map exposure at the right level
Physical climate risk is location-specific. A group-level statement about “extreme weather” is not enough to decide whether a basement plant room, waterfront warehouse, outdoor workforce or single-source supplier is vulnerable.
Start with assets, facilities, critical infrastructure, employee groups, logistics routes and key suppliers. Record ownership, operating importance, existing controls and the time horizon over which decisions are made.
Priority Hong Kong hazards
Direct exposure
- Typhoon wind and storm surge.
- Extreme rainfall, surface flooding and drainage constraints.
- Extreme heat affecting people, equipment and energy demand.
- Water interruption and drought-related supply pressure.
- Landslide or access disruption for exposed locations.
Indirect exposure
- Port, airport, road and cross-border logistics interruption.
- Supplier downtime and inventory shortages.
- Insurance exclusions, deductibles and pricing changes.
- Power, telecommunications and data-centre disruption.
- Customer demand or visitor-pattern changes.
A practical assessment process
- Screen locations and critical dependencies.
- Identify hazard, exposure and vulnerability separately.
- Assess operational and financial transmission channels.
- Test short-, medium- and long-term conditions using appropriate scenarios.
- Prioritise risks using consequence, likelihood, control strength and decision urgency.
- Record uncertainty, limitations and data gaps.
Turn findings into actions
| Decision area | Examples |
|---|---|
| Facilities | Flood barriers, drainage, equipment elevation, cooling, backup power and maintenance changes. |
| People | Heat protocols, remote-work arrangements, transport support, training and emergency communication. |
| Supply chain | Alternative suppliers, safety stock, route diversification and critical-supplier continuity plans. |
| Finance and insurance | Adaptation capital expenditure, insurance review, deductibles, reserves and financing options. |
| Governance | Risk ownership, trigger thresholds, incident escalation and board reporting. |
Connect adaptation to finance
Adaptation measures should be linked to the asset or activity at risk, the vulnerability being reduced and an outcome that can be monitored. This improves capital-allocation decisions and supports discussions about adaptation finance.
Report without false precision
Disclose the locations and activities assessed, scenarios or hazard information used, time horizons, assumptions, limitations and management response. Where reliable monetary estimates are not available, use structured qualitative and range-based information rather than a single unsupported number.
Official sources
This page is grounded in the following official materials; requirements and market practice can change.
- HKEX ESG Reporting CodePart D requires climate risk, strategy, scenario analysis, financial-effect and adaptation information with proportionality mechanisms.
- Cross-Agency Steering Group 2026–2028 prioritiesHong Kong priorities include adaptation finance and stronger physical-risk assessment capability.