Companies are also seeking to meet their sustainability commitments across three scopes. Scope 1 Scope 2 accounted for. All direct Indirect Scope 3 sustainability - sustainability - All other indirect related impact from related impact from sustainability - the activities that are emission-related under the control of purchases and their use related impacts from an organization. This by the organization. the organization’s could include scenarios Here the fossil fuel is activities occurring such as onsite fuel used to produce an from sources that combustion or usage asset. The emissions they do not own or of gas boilers, pollution created during the control. These are from fleet vehicles, and production of that usually the largest share air-conditioning leaks. energy and used to of greenhouse gas make a good must be emissions and carbon footprint, covering emissions associated with business travel, procurement, waste, and water. Insurance players have made significant advances in addressing physical, liability and operational risks, particularly when it comes to climate risk. Physical risk Liability risk Operational risk Property damage, Incurred by those Loss resulting from global supply chain parties who have inadequate or failed disruption, and resource suffered loss or damage procedures, systems scarcity resulting from from the effects of or policies. Employee droughts, floods and physical threats and errors. Systems failures. storms that impact seek compensation Fraud or other criminal tangible assets such as from those they hold activity. Cybersecurity wind turbines or green responsible via costs risks. Any event that buildings. passed to insurers. As disrupts business as transition risks develop, usual processes. these will become the root cause of new liability risk types. 23