; and (II) after taking into consideration— (aa) the capital structure, riskiness, complexity, financial activities, and size of the company, including the financial activities of any subsidiary of the company; and (bb) any other risk-related factor that the Board of Governors determines to be appropriate. (5) Nonbank financial company The term nonbank financial company has the meaning given the term in section 102(a)(4)(C) of the Financial Stability Act of 2010 ( 12 U.S.C. 5311(a)(4)(C) ). (6) Physical risks The term physical risks means financial risks to assets, locations, operations, or value chains that result from exposure to physical climate-related effects, including— (A) increased average global temperatures; (B) increased severity and frequency of extreme weather events; (C) increased flooding; (D) sea level rise; (E) ocean acidification; (F) increased severity and frequency of heat waves; (G) increased frequency of wildfires; (H) decreased arability of farmland; and (I) decreased availability of fresh water. (7) Technical Development Group The term Technical Development Group means the Climate Risk Scenario Technical Development Group established under section 4. (8) Transition risks The term transition risks means financial risks that are attributable to climate change mitigation and adaptation, including efforts to reduce greenhouse gas emissions and strengthen resilience to the impacts of climate change, including— (A) costs relating to— (i) international treaties and agreements; (ii) Federal, State, and local policies; (iii) new technologies; (iv) changing markets; (v) reputational impacts relevant to changing consumer behavior; and (vi) litigation; and (B) a loss in the value, or the stranding, of assets due to any of the costs described in clauses (i) through (vi) of subparagraph (A). (9) Value chain The term value chain — (A) means the total lifecycle of a product or service, both before and after production of the product or service, as applicable