The Adaptation and Resilience Investors Collaborative (ARIC) have developed the physical climate risk investor playbook as part of its efforts to enable the systematic identification of opportunities for building climate resilience.

The playbook provides investors with a simplified step-by-step approach to integrate the identification, assessment and management of physical climate risks in the investment process. It focuses on how to assess physical climate risks and identify adaptation and resilience (A&R) opportunities in the context of corporate finance and is product agnostic, applying to the provision of capital across both equity and debt instruments.

The playbook aims to address three key questions for investors:

• What is physical climate risk?
• Why should investors assess and manage physical climate risks?
• How can physical climate risks be assessed and managed throughout the investment process?

This playbook is a foundational step for investors engaging on adaptation and resilience, supporting further opportunity identification and impact realisation. Investors may refer to wider publications including the Climate Investment Playbook and the Adaptation & Resilience Impact: A measurement framework for investors report to understand cross-sector adaptation and resilience opportunities, and associated impact metrics for individual investments or aggregated portfolios.