What does climate change resilience refer to?

Climate change resilience specifically refers to the ability of assets to withstand physical climate risks. This concept is crucial for ensuring that infrastructure, investments, and communities can endure and recover from climate-related shocks such as extreme weather events, rising sea levels, and temperature fluctuations. Resilience encompasses not just the immediate reaction to these events but also the capacity to adapt and prepare for future climate impacts, maintaining functionality and safety.

While other concepts mentioned, like strategic forecasting of climate policy impacts and reducing carbon emissions through innovations, are important in the broader discussion of climate change and sustainability, they do not directly define resilience in the context of physical risks. Similarly, adaptation of business models to changing weather can be seen as a part of resilience but does not fully capture the multi-faceted nature of what it means to withstand physical climate risks. Thus, the correct answer emphasizes the fundamental aspect of resilience as it pertains to the physical climate threats that assets may face.