ClimatePREDICT

The financial sector is increasingly taking steps to assess risks and prepare for future climate changes. Still more is needed to create greater climate resilience. Before financial managers can make fundamental changes, they must first better understand to what extent climate change will amplify physical risk exposure to both gradual risks, such as sea level rise, as well as extreme weather losses. It is crucial to understand how event frequency, location, experienced direct losses, as well as a country’s capacity to cope with the recovery are influenced depending on which global warming pathway the world is on. Did you already think through the risk differential of your real assets portfolio 20 years from now under a net-zero scenario pathway versus a high warming scenario pathway?

ClimatePREDICT assesses real assets’ exposure to extreme weather risk under distinctive climate scenarios.

ClimatePREDICT quantifies the increase in frequency as well as impact (financial losses) of extreme weather risk to physical assets and economic growth.  Extreme weather frequencies and expected losses year-by-year, per type of event (e.g. droughts, storms, floods) for over 150 countries and 1800 cities globally, are also converted to growth impacts per country. Based on our ClimateMAPS scenarios and latest climate attribution science literature, we deliver these forward-looking estimations for both a climate-uninformed baseline, as well as under different global warming pathways. 

ClimatePREDICT is designed for financial institutions with large infrastructure, property and real estate portfolios such as banks, real estate managers, pension funds, and (re)insurance companies. This solution can help these organizations understand the financial impacts of climate attributable extreme weather on:

• Mortgage risk
• Real-estate evaluation
• Property and casualty underwriting risks
• Capital market return assumptions