Introduction
Climate risk assessments are essential for understanding and mitigating the impact of climate change on businesses and their operations. These assessments help companies prepare for the financial, operational, and regulatory challenges posed by climate change. As more businesses face increasing pressure from stakeholders, regulators, and investors to manage climate-related risks, implementing a reliable climate risk assessment platform becomes crucial. These platforms provide tools and insights that enable organizations to evaluate physical risks, such as extreme weather events, and transition risks associated with regulatory changes and market shifts.
What is Climate Risk Assessment?
Climate risk assessment is a systematic process through which businesses identify, evaluate, and mitigate the impact of climate-related risks. It involves examining the potential effects of both physical risks (e.g., heatwaves, floods) and transition risks (e.g., regulatory changes, carbon pricing) on a company’s operations, supply chain, and assets. This process helps organizations understand their vulnerability to climate change and prepare accordingly. Climate risk assessments can involve the use of various modeling techniques, scenario analyses, and data-driven insights to predict and plan for future climate impacts.
Why is it Important to Have a Climate Risk Assessment Platform?
In today’s rapidly changing climate, businesses need to stay ahead by identifying potential risks before they disrupt operations. A climate risk assessment platform provides the necessary tools to integrate real-time climate data into decision-making processes. By leveraging these platforms, organizations can effectively assess their exposure to climate hazards, such as rising sea levels, droughts, or extreme weather events. These platforms also enable companies to remain compliant with international standards, such as the Task Force on Climate-related Financial Disclosures (TCFD), and to maintain transparency with stakeholders about their sustainability efforts. As companies face growing regulatory pressures and demand for climate action, utilizing a platform for climate risk assessment allows them to stay proactive and prepared for the challenges ahead.
Top 9 Climate Risk Platforms
Credibl
Credibl is a leading ESG data management platform that provides comprehensive climate risk assessments integrated with ESG reporting. With Credibl, companies can assess physical and transition climate risks using real-time data and sophisticated modelling techniques. This platform aligns with global frameworks, such as the TCFD and CSRD, helping organisations stay compliant and prepared for future climate challenges. It also offers features like climate scenario analysis, data transparency, and seamless reporting for better decision-making. (Credibl)
EcoAct (an Atos company)
EcoAct’s Climate Risks Tool (ECLR) helps organisations analyse their vulnerability to climate hazards. The tool allows businesses to conduct in-depth assessments of physical climate risks, such as flooding, wildfires, and extreme temperatures. By providing insights into adaptation strategies, EcoAct supports companies in mitigating the impacts of these risks while ensuring regulatory compliance. EcoAct’s platform also supports global sustainability reporting, making it a vital tool for businesses seeking to integrate climate resilience into their strategies.
EarthScan
EarthScan offers advanced climate risk modeling tools that help businesses assess the potential impact of climate hazards on their assets. The platform uses machine learning and high-resolution data to calculate Climate Value at Risk (CVaR), providing organizations with a financial assessment of climate risk exposure. EarthScan also facilitates compliance with international reporting standards and supports the integration of climate data into business decision-making processes.
Manifest Climate
Manifest Climate provides an easy-to-use platform designed to help businesses manage and assess their climate-related risks. The platform offers tools for identifying both physical and transition risks and helps organizations embed climate considerations into their strategies. Manifest Climate’s platform also supports TCFD-aligned disclosures, making it an essential tool for organizations focused on climate governance and risk management.
Jupiter Intelligence
Jupiter Intelligence provides asset-level climate risk analytics through its ClimateScore™ Global platform. Using peer‑reviewed science, advanced debiasing, and validation techniques, it delivers precise insights into the financial impacts of acute and chronic climate risks across future scenarios. With a vast database of geographic, climate, and economic data, Jupiter enables financial institutions, insurers, energy companies, and governments to meet regulatory requirements (e.g., TCFD, CSRD) while integrating climate risk into portfolio management, supply chain planning, and resilience strategies.
EY Climate Analytics Platform (EY CAP)
EY’s Climate Analytics Platform (EY CAP) helps organizations evaluate both physical and transition risks through high-resolution climate modelling. The platform integrates various climate scenarios to assess the financial and operational impacts of climate change. EY CAP is designed to support global regulatory requirements and provides comprehensive reporting features for organizations aiming to align with TCFD, CDP, and the EU Taxonomy.
S&P Global Climanomics
S&P Global’s Climanomics platform helps organizations understand the financial impact of climate risks. The platform evaluates ten key climate hazards, including floods, heatwaves, and wildfires, and provides geo-specific insights into climate exposure. By delivering comprehensive risk assessments across multiple timeframes and scenarios, Climanomics helps businesses make informed decisions and develop effective climate risk strategies.
LogicManager
LogicManager’s Climate Change Risk Assessment Software is designed to assist organizations in managing and mitigating climate-related risks. The platform helps businesses assess both physical and transition climate risks, integrating climate considerations into enterprise risk management. LogicManager also supports compliance with sustainability frameworks like the PRI and SBTi, offering businesses a holistic approach to climate governance.
ClimateAi
ClimateAi uses AI-driven models to provide businesses with predictions and insights about climate-related risks. The platform leverages machine learning and climate data to help organizations understand the potential impacts of climate change across various scenarios. ClimateAi offers tailored insights for different industries, enabling organizations to proactively prepare for future climate events and transition risks.
Conclusion
As climate change accelerates, it’s becoming increasingly important for businesses to understand and manage their exposure to climate-related risks. With the right climate risk assessment platform, companies can evaluate both physical and transition risks, ensure compliance with evolving regulations, and make informed decisions to enhance resilience and sustainability. The platforms listed above offer valuable tools for assessing climate risks, but Credibl stands out as a comprehensive solution for seamlessly integrating climate risk into ESG reporting and decision-making. By leveraging Credibl’s powerful features, organizations can stay proactive in managing climate risks and remain ahead of regulatory requirements, ultimately achieving long-term success in a rapidly changing world.
Ready to take control of your climate risk strategy? Discover how Credibl can help you assess, manage, and report your climate risks effectively. Learn more about Credibl and schedule a demo today to ensure your business is prepared for the future of sustainability.
FAQs
- What are the key benefits of using a climate risk assessment platform?
Climate risk assessment platforms provide real-time data, help businesses understand their vulnerability to climate change, and ensure regulatory compliance. These platforms also enable proactive decision-making and improve operational resilience. - How does climate risk assessment help with regulatory compliance?
By providing tools to evaluate and report climate risks, these platforms help businesses comply with regulatory frameworks like TCFD, CSRD, and CDP, ensuring that they meet environmental standards and avoid fines. - Can these platforms help organizations integrate climate risk into their business strategy?
Yes, most climate risk platforms offer strategic tools that help businesses incorporate climate considerations into their long-term plans. These tools provide insights into potential future climate impacts, allowing organizations to prepare and adapt their strategies accordingly. - What industries benefit most from climate risk assessment platforms?
Industries such as real estate, energy, finance, and manufacturing benefit greatly from these platforms, as they often have significant exposure to climate-related risks that affect their operations and financial performance. - Are climate risk platforms only for large corporations?
No, climate risk platforms can be used by businesses of all sizes. While large corporations may have more complex needs, small and medium-sized enterprises (SMEs) can also use these platforms to assess climate risks and improve sustainability practices.
