c) thermal stress

The current version of our physical risk model calculations covers heat stress for generic temperature thresholds of 30, 35, 40, and 45 degrees Celsius and cold stress for generic temperature thresholds of 0, -5, -10, and -15 degrees Celsius. It is important to note that different asset types in different localities will have different operating temperature thresholds. For example, a railway asset in Germany will not be able to withstand the same temperatures as an Australian railway asset (Huizinga et al., 2017).^[1]

As aforementioned, thermal stress does not damage assets per se but disrupts the operation of the asset, thus affecting an asset’s operational revenue. Accordingly, we approach thermal stress from the perspective of operation disruption rather than physical damage. To measure operational disruption, we count the number of days where the temperature exceeds or falls below a certain extreme temperature threshold and calculate the corresponding operating revenue loss.

_{Huizinga, J., de Moel, H., Szewczyk, W. (2017). Global flood depth-damage functions: Methodology and the database with guidelines. Joint Research Centre Technical Report. https://data.europa.eu/doi/10.2760/16510}