Enabling development of a dynamic adaptation strategy, to shield your organization from climate risk cost exposure.
The ClimateAdapt quant model performs a robust materiality analysis over physical and transition risks, to accurately identify the most material climate-related risks an organization faces, helping to pinpoint the actions needed to build in resilience. ClimateAdapt provides a cascade map, showing the genesis of climate risk and the interlinked and cascading risks of assets, operations, people, and exposure under different scenarios.
The tool enables organizations to establish a current day baseline exposure on their balance sheet, and to model climate risk exposure under multiple SSP-RCP scenarios against future time horizons.The purpose of providing multiple scenario analyses is to counter the magnitude of uncertainty that climate risk presents, by enabling organizations to adapt their planning and investment strategies to respond to the intensity and frequency that climate stressors may present to organizations, over time, under various global warming pathways.
Having identified and quantified baseline risk, an organization is then well positioned to identify adaptation options and opportunities. ClimateAdapt then enables a cost-benefit analysis of each option to identify the optimal planning and investment strategy for building resilience into your business model.
The end product of a cost-benefit analysis of adaptation options is a dynamic adaptive plan. This plan provides a helicopter view of tolerance threshold exceedance triggers, to inform the timing and budget required for the selected adaptation options, over time, and under different global warming scenarios.
The science-based outputs of ClimateAdapt can be integrated into an organization's climate-related disclosure and included in financial statements. These outputs demonstrate to regulators and investors that the organization has a robust understanding of the impact of climate risk on the balance sheet and a strategy for strengthening business resilience.
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