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53 About Strategy and Governance Our People Our Business Our Outcome AppendixPhysical RisksWe identified the following acute and chronic physical impacts of climate change:Damage to transportation infrastructure caused by rising sea levels and heavy precipitationDelivery disruption and higher costs as emergency alternative solutions have to be found, difficulties for employees to travel to work leading to high absenteeism and operational disruptionModerate Damage to energy infrastructure caused by extreme weather eventsOperational and supply chain disruptions, systems breakdownModerateReduced raw material availability to DKSH clients due to drought stressDisruption of raw material availability to DKSH clients, impacting the availability of consumer goodsSevere Lack of insurance due to extreme weather eventsNatural hazards might not be insurable in the future, leading to a high cost of risk transferLow Health impact on the workforce Negative impacts on the health and safety of the workforce, leading to absenteeism and a lack of talentSevere Risk Impact Financial impactTransition RisksThe following risks are associated with the transition to a low-carbon economy:Greenwashing accusations Reputational damage which impacts demand; greater effort involved with performing due diligenceUndetermined Dependency on electricity supply Increased dependency on electricity supply requires consistent energy infrastructureModerate High uncertainty regarding energy supply and pricesIncreased costs associated with fluctuating energy prices and unexpected shifts in energy pricesModerate Reduced capital availability Capital is increasingly tied to a company%u2019s climate performance as sustainability policies become more commonLow Increased pricing of greenhouse gas emissionsRising energy prices, energy or carbon taxes and regulation-driven costs, regional inequality leading to geographic redistributionLow Risk Impact Financial impactTo learn more about climate-related risks and opportunities, please read our CDP Questionnaire 2023 (sections C2, C3.3, and C3.4), which is available on the CDP website.