Kao Data_ESG Report 25-26_SP - Flipbook - Page 58
Introduction
Environmental
De昀椀ning
climate risks
Kao Data assesses physical risks such as rising temperatures,
昀氀ooding, and water stress that have the potential to impact
operational resilience and asset performance. Physical risks
that Kao Data considers relate to damage to buildings, sites,
and operations because of greater exposure to climate
change. These might be acute risks, like the risk to damage
from increasingly frequent or severe extreme weather
events, or chronic risks, such as rising temperatures or sea
levels, or chronic water stress. These physical risks can have
direct 昀椀nancial implications due to operational disruption.
The implications of chronic physical risks are also deeply
tied to climate transition risks such as the costs incurred
to transition to low carbon, climate risk resilient systems.
Kao Data assesses these climate transition risks and
opportunities such as those driven by regulation, energy
pricing, and customer expectations that are reshaping the
data centre sector.
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Kao Data ESG Report 2025-26
Social Sustainability
Governance
