Risks Risks arising from policies and legal systems related to the transition to a low-carbon economy, and risks to supply and demand in existing business resulting from the creation of new technologies and new markets; risks to companies’ operations from cyclones and hurricanes caused by the physical effects of climate change, and risks to production volumes for agriculture, forestry, and fishery products from abnormal weather (high temperatures/drought); and higher environmental costs resulting from ecosystem destruction, degradation, etc., as a consequence of business activities.