liability risks are risks to high carbon emitters if they are made to compensate in the future for emissions produced today or to companies that have failed to adapt to physical risks that threaten to disrupt their supply chain transition risks are risks arising from changes in policy and regulation as a result of the transition to a greener economy that could affect the profitability of carbonintensive industries carney reducing resource use and measuring environmental performance is an opportunity to streamline operations increase efficiency and competitiveness