Which of the following is one of the planetary boundaries most relevant to corporate risk?

• A. Climate change
• B. Oxygen depletion
• C. Plate tectonics
• D. Solar radiation

Answer: (A)

Climate change is the planetary boundary most tied to corporate risk because it drives both physical and transition risks that directly affect a company’s bottom line. Physically, extreme weather events, floods, droughts, heat waves, and sea‑level rise can damage facilities, disrupt supply chains, increase operating costs, and threaten employee safety. Transition risks arise as policies tighten, carbon prices rise, and markets shift toward lower‑carbon goods and services, which can alter demand, spur stranded assets, or require expensive investments in new technology. Together, these risks influence financing, insurance costs, and long‑term strategy, making climate change the most relevant boundary for corporate risk.

Oxygen depletion, plate tectonics, and solar radiation aren’t framed as planetary boundaries in the current framework in the same way, and they don’t present the same direct, pervasive risk channels for modern businesses.