Financial institutions are playing an increasing role in the low-carbon transition by taking steps to accurately estimate, price, and disclose future climate risk. By quantifying their exposure to climate risks, financial institutions can more effectively allocate investments, avoid ‘stranded’ assets, and track adherence to Paris Agreement goals and shareholder commitments. However, it remains difficult for these institutions to assess climate related risks across a portfolio of assets and across different benchmark warming scenarios.
We will cover large scale data transformation approaches as part of an end-to-end framework for quantifying annual, asset-level climate risk over multiple climate hazards including wildfires, inland flooding, and heat waves using simulations from global climate models participating in the Coupled Model Intercomparison Project Phase 6 (CMIP6).
We quantify forward looking climate risk from 2020 to 2100 under multiple climate scenarios such as high-emissions (SSP5-8.5) and medium-emissions (SSP2-4.5) warming scenarios. We will also showcase intermediate steps to make the climate simulations and spatiotemporal data interpretable and actionable.