Impacts of the Evolution of Physical Climate Risks on European Business Activities: the case of construction sector

The study of climate change is grounded in two closely intertwined scientific domains: meteorology and climatology (Masson-Delmotte, 2012; Qian, 2017). Daily meteorological data plays a pivotal role in deciphering long-term climate trends, especially within specific geographical regions (Kottek et al., 2006). Within the context of analyzing climate risks for businesses, these data is indispensable for assessing the physical impacts of climate change. Physical climate risks can be categorized into two types: acute climate risks, encompassing extreme weather events, and chronic risks associated with gradual shifts in climate variables, illustrated by anomalies signifying significant deviations from typical meteorological conditions (Hain et al., 2022). Extreme weather events can result from either sudden and intense occurrences, such as storms, or the accumulation of abnormal conditions over an extended period. For instance, droughts arise from extended periods of insufficient precipitation, which can trigger wildfires and are also linked to heatwaves (Littell et al., 2016). This classification underlines the critical importance of considering climate anomalies when assessing the impact of extreme weather events. The study of anomalies and extreme events in the context of climate change significantly contributes to our understanding of this phenomenon (Masson-Delmotte, 2012). Instead of relying solely on a single indicator, such as temperatures, substantial efforts are devoted to evaluating regional variability in temperatures, precipitation, and extreme climate events (McPhillip…