Climate risk analytics platform

Problem Addressed
The world has witnessed an alarming increase in the number of extreme weather events in recent years. The past 20 years saw a 74% increase in disasters linked to natural hazards compared to the prior two decades. This has resulted in 1.23 million lives claimed, 4 billion people affected and $2.7 trillion in global economic losses ( S&P Global).
Climate change will transform our planet, with some geographies at greater risk than others – knowing where these risks are and when they will become material is challenging. At the Climate Service, now part of S&P Global, climate experts and data scientists have built an easy-to-use, science-backed climate risk analytics platform to help you identify and measure climate risk in your assets, business, and investment portfolio.
Case Study
The mortgage team at a large bank was working closely with their credit risk colleagues to understand potential weaknesses within the bank’s mortgage portfolio. It was clear to both teams that physical climate risks should be taken into account given the alarming increase in the number of extreme weather events in recent years. This would require the expertise of specialists who had developed proven methodologies to project the impact of such hazards on key portfolios over time to identify the most at-risk assets.
The Climanomics® platform would provide the mortgage team with:
- A rigorous screening of physical risks – starts by utilizing publicly available raw climate data from sources such as the IPCC, the NOAA, the WWF, and much more.
- A price on climate change – quantifies physical risks in financial terms (average annual loss) that are aligned with the recommendations of the TCFD.
- Scenario analysis – incorporates four climate scenarios based on the Representative Concentration Pathways (RCPs), a GHG concentration trajectory adopted by the IPCC.
- Visualizations of insights – delivers simple charts, graphs, narrative and data for export that provide insights into the location, severity and timing of climate-related risks.
- An additional lens to evaluate risks – investigates market-level trends the probability of municipal adaptation and insurability as an additive layer to the outputs from the physical risk analysis.
Read the full case study.
This page presents data, evidence, and solutions that are provided by our partners and members and should therefore not be attributed to UKGBC. While we showcase these solutions for inspiration, to build consensus, and create momentum for climate action, UKGBC does not offer commercial endorsement of individual solutions. If you would like to quote something from this page, or more information, please contact our Communications team at media@ukgbc.org.
Related
Climate Risk Data Analytics

Climate risk platform

SaaS climate analytics platform

Microclimate modelling solution
