Enabling development of a dynamic adaptation strategy, to shield your organisation 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 organisation 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 organisations 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 organisations to adapt their planning and investment strategies to respond to the intensity and frequency that climate stressors may present to organisations, over time, under various global warming pathways.
Having identified and quantified baseline risk, an organisation 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 organisation's climate-related disclosure and included in financial statements. These outputs demonstrate to regulators and investors that the organisation 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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