Introduction
Climate risk planning in healthcare requires health systems to assess, quantify, and mitigate the physical and transition risks associated with climate change. From facility vulnerability to regulatory carbon requirements, health systems face a complex, evolving set of climate-related exposures that demand proactive planning and transparent disclosure.
Physical Risk Assessment
Physical climate risks — flooding, extreme heat, wildfire, drought, and severe storms — vary significantly by geography and require site-specific analysis. Health systems should conduct structured climate risk assessments for each facility, using 10, 20, and 30-year climate projections to inform decisions about capital investment, insurance strategy, and operational resilience.
Transition Risk and Carbon Strategy
As carbon pricing, energy standards, and investor expectations evolve, health systems face growing transition risk associated with high-emission facilities and energy-intensive operations. Developing a credible net zero pathway — covering scope 1, 2, and 3 emissions — reduces this risk and positions the organisation as a responsible community institution.
Climate Risk Disclosure
Institutional investors, boards, and regulators are increasingly requiring organisations to disclose material climate risks using frameworks such as the Task Force on Climate-related Financial Disclosures. Health systems with significant debt or philanthropic funding will face growing pressure to develop credible climate risk disclosures and transition plans.
Operational Continuity Planning
Climate resilience requires integrating climate scenarios into operational continuity plans. This includes reviewing emergency operations plans for heat events, flooding scenarios, and prolonged power outages, as well as ensuring supply chain contingencies for climate-related disruptions to medical supplies, utilities, and transport networks.
Conclusion
Climate risk planning is an enterprise risk management function with direct implications for patient care, financial performance, and community responsibility. Health systems that address climate risk proactively will sustain operations, protect their communities, and meet the expectations of regulators and stakeholders.