ClimINVEST – Understanding physical climate risk
ClimINVEST brought climate scientists and investors together to provide transparency on methodologies for physical climate risk assessment, and develop guidance tools that inform investors’ risk management processes.
As the financial cost of climate hazards increase, investors are looking for more transparency and precision in physical climate risk assessment tools. Over the last five years, service providers around the world have developed tools intended to help financial decision makers identify, manage, and disclose physical climate risk. The tools available vary in scope and focus; few provide a transparent look at data sources or methodology, making it difficult for investors to tailor approaches to their investment portfolios.
Tailored physical climate risk information for investors
ClimINVEST brought climate scientists and investors together to co-design transparent, publicly available indicators, tools and maps on physical climate risk that help investors answer the following questions:
What information is available for investors?
How can investors better secure the value of their portfolios against physical climate risk?
Which risks require immediate attention from investors?
The international research consortium behind the ClimINVEST project is specialized in assessing climate impacts and developing tailored climate services and tools.
The consortium aimed to improve the information flow between climate science and investors, promote systemic thinking that connects climate hazards and financial impact, and facilitate disclosure of climate risk in investment portfolios, in accordance with the Financial Stability Board’s (FSB) Taskforce for Climate Related Financial Disclosures (TCFD) 2018 recommendations.
The project led by CICERO ran from 2017 to February 2021 and was funded by the European research area for climate services (ERA4CS).
Involved CICERO staff
Scientists demystify climate scenarios for investors
Climate change is a real financial risk, but the risk depends on the complex evolution of climate policy, technology, and the climate system. CICERO’s new climate scenario guide explains how investors can use scenarios to evaluate different financial risks.