According to Task Force on Climate-related Financial Disclosures (TFCD) physical risks are the second most important climate-related risk category after transition risk.
Physical risks refer to extreme weather events, such as torrential rain, storms and hurricanes, as well as more long-term shifts in climate patterns that may cause chronic heatwaves or sea level rise.
PGNiG ’s production facilities in Poland and on the Norwegian Continental Shelf are not exposed to such dramatic changes as those faced by Russian extraction companies in Siberia, where thawing permafrost is affecting existing infrastructure. However, rising temperatures may hinder operations in the tropical regions, for instance in Pakistan, where a PGNiG subsidiary is conducting exploration activities. PGNiG monitors all these risks, taking them into account when making further business decisions, and seeks to protect its existing wells against extreme weather events that could destroy its production infrastructure.