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Featured · Regulation
EU Omnibus and Physical Climate Risk: what has changed for CSRD and Taxonomy obligations
The EU Omnibus has significantly narrowed the scope of CSRD reporting. But for companies that remain in scope, physical climate risk is still addressed under ESRS E1. And for relevant EU Taxonomy activities, climate risk and vulnerability assessments remain embedded in the technical screening criteria.
Here is what has changed, what has not, and what this means for physical climate risk assessments.
UNCHANGED
Physical climate risk remains part of ESRS E1
STILL RELEVANT
EU Taxonomy climate risk and vulnerability requirements remain
Latest insights
The EU Omnibus has narrowed the scope of CSRD reporting, but physical climate risk stays mandatory under ESRS and embedded in EU Taxonomy criteria. Here is what has changed, what has not, and what it means for physical climate risk assessments.
Most climate-related economic losses in Europe remain uninsured. As extreme weather intensifies, rising premiums, coverage restrictions, and growing protection gaps are turning physical climate risk into a broader challenge for property owners, lenders, insurers, and governments.
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Assessing flood risk for a single asset is one challenge; doing it consistently across an entire portfolio is another. We explore how asset-level flood modelling can be scaled to support portfolio screening, financial risk quantification, and resilience investment prioritisation.
Flood risk is increasing across Europe, but translating hazard data into financial exposure remains challenging. Our white paper presents a scenario-based framework that connects flood modelling, asset vulnerability, and Climate Value at Risk.
The EU Taxonomy requires real estate developers, owners and investors to assess and disclose physical climate risk under its climate change adaptation objective.
Following the Omnibus simplification, the reporting burden has been reduced. The underlying assessment obligation has not.
2024 and 2025 confirmed that exceptionally high global temperatures are becoming a persistent feature of the climate system. For real estate and infrastructure, this has direct implications for physical risk, operating costs, insurance, and long-term asset value.
As climate data increasingly informs financial and strategic decisions, transparency and trust are becoming critical. Sustainaccount contributed to the Climateurope2 Joint Industry Statement, advancing common principles for credible, transparent, and decision-useful climate services.
How can AI help strengthen climate resilience? A SATW white paper brings together more than 70 experts to explore the potential of AI in addressing climate impacts, including contributions from Sustainaccount on AI-driven climate risk assessment.
Brenntag partnered with Sustainaccount to assess physical climate risks across its global operations. The collaboration combines forward-looking climate analytics with tailored adaptation measures to support resilience, business continuity, and better decision-making.
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