Climanomics Methodology for Climate Risk Analysis

This document is a technical report detailing the methodologies, models, and datasets that underpin the Climanomics® platform for real asset climate risk analysis. It outlines the importance of assessing climate change as a driver of financial risks for companies and investors, as highlighted by the Taskforce on Climate Related Financial Disclosures (TCFD). The report describes how Climanomics® quantifies the financial impacts of climate change on physical assets, utilizing a suite of Climate Change Physical Risk Analytics solutions. It explains the data sources, including the CMIP6 Global Climate Models and various scientific research papers, which provide the foundation for the platform's climate hazard modeling framework. The methodologies for assessing extreme heat, drought, wildfire, coastal flooding, and fluvial flooding are detailed, including the statistical models and hazard variables used in the analysis. The report serves as a comprehensive guide for understanding the processes involved in climate risk assessment and the implications for risk management and sustainable investing.