Global Sustainability: 11 Investor FAQs from our Physical Risk Deep Dive

This UBS Global Sustainability report answers 11 investor FAQs following the team's deep dive "Physical Risk Meets P&L Reality", which showed that climate physical risk can be linked to company financial outcomes across three sectors despite differing transmission mechanisms. Key takeaways: companies able to finance, execute and monetize adaptation should be better positioned than those whose physical exposure is growing faster than their adaptation capacity; as more companies invest in resilience, solution providers supporting that response see a broader opportunity. The FAQ piece, based on two weeks of meetings, addresses why the theme is now financially relevant, why utilities, agricultural supply chains and semiconductor manufacturing were chosen, adapters versus enablers, the theme's durability under high interest rates, how to identify adaptation spending today, distinguishing value-creating adaptation from added cost, whether the utility thesis is merely power demand, whether in