COMMENT | When we talk about climate risks, we tend to picture mass physical threats, i.e. extreme weather patterns, loss of lives, and widespread damage to infrastructure.

Yet, few consider the ‘‘unspoken risks’’ associated with the transition to a net-zero future.

These transition risks do not take the form of floods or storms, but rather emerge as complex economic, social, and political challenges.

One clear example is the potential impact of introducing carbon pricing mechanisms, such as a carbon tax, which can increase operating costs, particularly for hard-to-abate industries like oil and gas.

To comply, businesses may need to...