As the relationship between climate change and financial risk become more apparent, the ability of firms to assess climate risk for their unique needs is becoming increasingly important. Assessing climate-related risks can help firms with their own investment and strategic decision-making, overall risk management, and may become important to help answer questions by investors, regulators, and other stakeholders.
An industry of climate risk data and analytics tools has emerged in the last five years to help firms and investors better assess climate related risks. CFA tracks data and analytics tools useful for investment decision making (for both public and private investors) on an ongoing basis.
Through much of our work, CFA offers our clients insights derived from our database, which is in turn helpful for them to determine how climate risk tools can meet their needs. While CFA does not endorse any one tool, understanding information such as whether a tool covers physical or transition risk (or both), whether it utilizes all or only some of the IPCC RPC scenarios, whether it provides outputs in financial terms, and whether the tool allows users to toggle through different time horizons are important functionalities. Our database of companies in this sector is populated with information already publicly available but is organized in a way that makes it easy to quickly discern the types of relevant information for a firm or investor’s use-case.
You can find a snapshot of characteristics and functions that existing climate risk data and analytics tools can provide on our website. We plan to publish regular updates of this information as the industry continues to evolve, the number of tools grows, and more functionalities emerge.
For more information, please contact Christina Stanton, Chief Operating Officer, Climate Finance Advisors at christina@climate-fa.com.