■ While we anticipate increasing frequency and severity of climate events and are incorporating these into our business continuity plans and insurance coverage accordingly , we lease all our office buildings that are geographically dispersed , so we are very resilient to potential impacts of physical risks ( such as extreme weather ) that could disrupt our operations . Office design and location , business continuity planning , insurance , and flexibility with remote work environments and investment in our remote computing platforms , all additionally mitigate the risk of adverse impacts caused physical risk .
In FY22 we conducted a comprehensive physical risk assessment to evaluate the likelihood and consequence of climate-related impacts over various timeframes and climate scenarios . Utilizing a physical risk modeling tool designed in house by our resiliency team , we were able to assign a hazard score based on both major consequences to buildings and contents ( e . g ., coastal flooding , earthquake , hurricane , riverine flooding , tornado , tsunami , volcanic activity , and wildfire ) and to staff and subcontractors conducting outdoor work ( e . g ., heat waves and cold spells ). The assessment covers short- , medium- and longer-term physical risks ( i . e ., acute and chronic ).
acute and chronic risks could be incorporated into local business continuity plans . Our BCDR team meets quarterly and is responsible for reviewing and maintaining our BCDR Plan , which identifies vulnerabilities and recommends measures to prevent and respond to extended outages . The Companywide BCDR Plan is implemented by the designated local and sector-based recovery teams who are most impacted by the disaster . Teams are trained extensively on the Plan and are responsible for assessing the disaster and activating the recovery plan . Our Plan and recovery teams ensure that risks posed to our subcontractors working on site with us , as well as our clients , are mitigated to the fullest extent possible .
The physical risk assessment was reviewed in FY22 with our VP Corporate ESG and Sustainability , our National Safety Director , our Chief Risk Officer , our VP of Resiliency , and our SVP Procurement who leads our upstream real estate leasing strategy . The assessment evaluated business continuity and safety implications for our office locations under a pessimistic scenario ( RCP 8.5 ) and a net zero scenario ( RCP 4.5 ). RCP 8.5 represents the closest approximation of both historical emissions and anticipated outcomes of current global climate policies whereas RCP 4.5 represents a more optimistic scenario based on more aggressive mitigation strategies moving forward .
The annual physical risk assessment was reviewed with the Crisis Management Committee so that any
38 2022 Sustainability Report