Resources
Interactive climate indicators platform - key resource from the ClimINVEST project
The interactive indicators platform is targeting financial decision makers to extend their understanding about climate risk assessment, data needs, climate modeling and extreme events.
The platform can help investors disclose climate risk in their investment portfolios and shows a series of co-designed indicators on physical climate risk relevant for investors. These indicators are presented as maps, which can be explored interactively, to get an in depth view of the spatial differences in the impacts of physical climate risk.
The material presented here contributes to transparency on methodologies for physical climate risk assessment can be used as guidance tools for investors.
Capstone webinar: Physical climate risk and finance
Insights from climate experts and investors to inform climate risk management
Watch our closing webinar to get the latest science updates on physical climate risk and from our project capstone report and a showcase of case studies and an online climate indicators platform developed in the project to inform investors’ risk management processes. We will also have a conversation with investors in France, the Netherlands and Norway who will share insights and experience on physical climate risk assessment in practice.
ClimINVEST suite of scientific factsheets
As a key output of the ClimINVEST research project, we have produced a suite of scientific factsheets intended to build financial decision makers’ understanding about physical climate risk assessment, data needs, climate modeling and extreme events:
- Three ClimINVEST hazard factsheets: Floods, heat waves and drought.
- Factsheet about the basics of climate modeling and the uncertainties that comes with them.
- Factsheet about physical climate risk assessment
- Factsheet - a case study from The Wall, a shopping centre in the Netherlands, demonstrating a high-level physical climate risk screening and considerations that should be taken into account for a real estate asset.
- Dutch Climate Impact Atlas and Dutch Climate Damage Atlas
Dive into the suite of scientific factsheets here.
ClimINVEST presentation series: Physical climate risk for finance
We have prepared a series of webinars aimed at providing guidance for the financial sector.
The webinar gives introduction to key topics to understand physical climate risk (climate modeling and calculating climate risk) and dives into different climate hazards (drought, heat, flooding) and case studies on physical climate risk (Shopping center in the Netherlands, agriculture and railways in Norway).
Check out the presentation series here.
ClimINVEST PUBLICATIONS
FINAL REPORT (FEBRUARY 2021): Addressing challenges of physical climate risk analysis in financial institutions
Authors: Romain Hubert (I4CE), Iulia Marginean (CICERO), Michel Cardona (I4CE), Christa Clapp (CICERO), Jana Sillmann (CICERO.
This is a synthesis report of practical lessons from the ClimINVEST project: a 3-year collaboration between European climate experts and financial institutions to move forward with physical climate risk analysis and management. The project gathered ClimINVEST partners Carbone 4, Climate Adaptation Services, CICERO, I4CE, Météo France and Wageningen Environmental Research as well as a number of financial institutions in France, the Netherlands and Norway.
The project shed light on four major challenges that were partly mitigated during the project: the tragedy of time horizons; the black box of climate services; data accessibility; the quantification of financial impacts.
The report summarizes priority action points based on feedbacks from twelve financial institutions involved in the project and from the research partners. Financial actors should build further expertise on physical climate risks and experiment climate risk assessment on their own portfolios. To do so, they can capitalize on the publicly available ClimINVEST resources (available on this website and on the online indicators platform)
REPORT (June 2020): Assessing climate physical risks for financial decision makers
Authors: Florian Gallo, Violaine Lepousez (Carbone 4)
The physical impacts of climate change are expected to worsen over the next few decades, threatening financial investments and activities. Financial decision makers are asked and need to assess these physical climate risks in order to anticipate and manage these risks.
This report introduces a new framework to help decision makers understand risk assessment implementation issues and build capacity for analyzing and managing risks. Commonalities and differences across sectors, type of portfolios and data availability context are presented through several case studies. Challenges and opportunities ahead are identified to ensure climate risk assessments provide useful and rigorous information to financial decision makers.
Download the report here.
BOOK CHAPTER (January 2020): Physical Climate Risks and the Financial Sector—Synthesis of Investors’ Climate Information Needs.
ClimINVEST researchers have written a chapter in the newly published Handbook of Climate Services by Springer. Link to the chapter.
Authors: Karianne de Bruin (Wageningen Environmental Research), Romain Hubert (I4CE), Julie Evain (I4CE), Christa Clapp (CICERO), Miriam Dahl (CICERO), Jaclyn Bolt (Wageningen Environmental Research)
This chapter presents the results of the ERA4CS-JPI Climate project ClimINVEST aimed to co-design tailored information on climate change. It provides an overview of investors’ needs and information gaps on the physical impact of climate change. It identifies what information sources financial actors rely on and what challenges they face in decision-making incorporating available climate change information while taking into account diverse investor mandates and risk management approaches.
REPORT: Physical climate risk: Investor needs and information gaps
Authors: Karianne de Bruin (Wageningen Environmental Research/CICERO), Romain Hubert (I4CE) , Julie Evain (I4CE), Christa Clapp (CICERO), Miriam Dahl (CICERO), Jaclyn Bolt (Wageningen Environmental Research)
While investors are paying more attention to climate change, there is a lack of granular data designed to support financial decisions. Climate science can provide improved indicators and metrics to help investors better manage physical climate risks.
This report presents the first results of the ERA4CS-JPI Climate project ClimINVEST aimed at co-designing tailored information on climate change. We provide an overview of investors’ needs and information gaps regarding the physical impacts of climate change. We identify the information sources that financial actors rely on and the challenges they face in decision-making incorporating available climate change information while taking into account diverse investor mandates and risk management approaches. The user needs identified underscore the need for collaborative efforts between researchers and the financial sector on improving climate risk information.The report presents three geographical case studies – France, the Netherlands and Norway.
Download the report here. Read a news article about the report here.
REPORT: Getting started on physical climate risk analysis in finance - Available approaches and the way forward
Authors: Romain Hubert, Julie Evain and Morgane Nicol (I4CE)
Financial institutions are already exposed to the potential physical impacts of climate change that require immediate attention from financial institutions in order to understand how well prepared the economic actors that they finance are. Yet financial institutions still lack tailored information to analyze their exposure to these risks. They are starting to explore such analysis based on the methodologies developed by third-party service providers.
What is the state of play of existing approaches to analyze physical climate risks at financial institutions? The objective of the first ClimINVEST report prepared under Work Package 1 is to identify existing approaches of physical climate risk analysis that target financial actors.
Download the report here. Download the Executive summary here.
VOLUME CHAPTERS (September 2020)
With the aim of informing the financial community on Environmental Risk Analysis methodologies, the Central Banks and Supervisors’ Network for Greening the Financial System (NGFS) has published a volume with case studies on tools & methodologies for environmental risk analysis. Two chapters build on work from ClimINVEST.
Chapter 37: Framing Scenarios for Transition and Physical Risks by CICERO
NEWSLETTERS
ClimINVEST Newsletter 1/2021 (March 2021). This newsletter presents the key resources from the ClimINVEST project, an interactive climate indicators platform targeting financial decision makers to extend their understanding about climate risk assessment, data needs, climate modeling and extreme events. You can also watch our capstone webinar with insights from the project and investors in Norway, the Netherlands and France and read our capstone report: Addressing challenges of physical climate risk analysis in financial institutions.
Read the newsletter here.
ClimINVEST Newsletter 3/2020 (November 2020). This newsletter includes a suite of scientific factsheets intended to build financial decision makers’ understanding about physical climate risk assessment, data needs, climate modeling and extreme events. You can also read a blogpost by Christa Clapp and Jana Sillmann on how physical risk can amplify financial risk, two chapters on case studies on tools & methodologies for environmental risk analysis and more.
Read the newsletter here.
ClimINVEST Newsletter 2/2020 (July 2020). This newsletter includes series of presentation videos aimed at providing guidance for the financial sectors. They give introductions to key topics to understand physical climate risk and dives into different climate hazards. You can also read a new report from Carbone4 and the ClimINVEST project describing a new framework to help decision makers understand risk assessment implementation issues and provide transparency on methodologies and more.
ClimINVEST Newsletter 1/2020 (April 2020). This newsletter includes key take-aways from a workshop on physical climate risk with financial decision-makers, Q&A with an investor (HSBC) and a climate expert (I4CE) as well as other publications and information material we contributed to.
ClimINVEST Newsletter 2/2019 (October 2019). This newsletter includes updates from the project and an invitation to an open event for investors in Paris 28 November
Read the newsletter here.
ClimINVEST Newsletter 1/2019 (March 2019) The newsletter includes recent reports, but also information on ongoing activities and collaboration between scientists and investors in science practice labs in France, the Netherlands and Norway and participation at relevant conferences.
Want to subscribe to the ClimINVEST newsletter? Send us an email at miriam.dahl@cicero.oslo.no
RESULTS FROM CLIMINVEST USED IN OTHER PROJECTS
Financial institutions face challenges in identifying and processing data on climate hazards to assess physical climate risk and fulfill TCFD-reporting requirements. Results from ClimINVEST and similar projects will be used to produce a dataset of climate hazards that will be a reference for assessing physical climate risk for different sectors and assets, in line with TCFD recommendations. The dataset to be developed is based on data products from the Copernicus Climate Change Service (C3S) Climate Data Store (CDS) and additional sources.
The data will be available in the Climate Data Store late 2020 free to use for all and have a dedicated information section on the C3S website.
CICERO is taking part in this Copernicus-tendered project led by Harilaos Loukos, CEO of The Climate Data Factory and supported by the United Nations Environment Programme Finance Initiative (UNEPFI).
Read more.
Articles, blogs and media coverage
April 2019: ClimINVEST figuring in the 11th ERA4CS newsletter (in English)
December 2018: ClimINVEST mentioned in the 10th ERA4CS newsletter (in English)
Past events and meetings
28 November 2019 A closer look: translating physical climate hazards into financial impacts
The ClimINVEST consortium organised a workshop on physical climate risk and financial impacts for investors and representatives from financial institutions 28 November 2019 in Paris. The event was an opportunity for financial decision-makers to learn and have a dialogue with climate scientists and experts in order to improve understanding of physical climate risk.
Read more.
Christope Periard (Météo-France), Jana Sillmann (CICERO), Julien Sciau (AFD) and Marine de Bazelaire (HSBC) discussing physical climate risk analysis. The panel was chaired by Romain Hubert (I4CE). Photo: CICERO
27-28 November Consortium meeting at Carbone4, in Paris, France
15 October 2019 - Workshop with investors in Oslo (Science Practice Lab) Joint workshop with about 20 representatives from Norwegian investors on transition risk (CICERO Sustainable Edge project) and physical risk (ClimINVEST).
27-31 May 2019 - ECCA 4th European Climate Change Adaptation Conference, Lisbon, Portugal
ClimINVEST participated and held a number of presentations at the conference and at relavant side events:
Florian Gallo (Carbone4): ClimINVEST – Towards tailored climate information for the finance sector – a co-production approach between scientists and investors
Sophie Dejonckheere (CICERO): Physical climate risks and the Financial sector – synthesis of investors climate information needs
JPI Climate side event: Climate services: state of affairs, relevance for users and the way forward
9 May - ClimINVEST Science Practice Lab: Physical climate risk for the Dutch financial sector
Over 40 participants from the Dutch financial sector (asset managers, banks, real estate brokers, insurance companies a credit-rating agency and the Dutch Central Bank) gathered to gain insight in the physical climate risk for the financial sector, to get a better understanding about how organisations are dealing with it, and explore ways to speed up these developments. The Science Practice Lab was organised by Wageningen Environmental Research and Climate Adaptation Services (CAS).
Climate scientists and investors meeting at CICERO 29 April 2019. Photo: Miriam Stackpole Dahl, CICERO
29 April 2019 - Meeting between investors from Norway and Sweden and climate scientists from CICERO Discussion on physical risk and improving physical climate risk indicators for financial decision making (ClimINVEST Science Practice Lab) .
11-13 March 2019 - Scenarios Forum 2019, Denver, USA
ClimINVEST participated and held two presentation on ClimINVEST at the Scenarios Forum Conference in Denver:
Florian Gallo (Carbone4) and Jana Sillmann (CICERO), oral presentation on “ClimINVEST – From physical risk scenarios to financial indicators – a co-production approach between climate experts and the finance sector” in the session USE OF SCENARIOS FOR ASSESSING CLIMATE-RELATED FINANCIAL RISK AND OPPORTUNITY
Anton Orlov (CICERO), Oral presentation on “Economic implications of heat-induced reductions in workability in RCP-SSP future pathways” in the session COST OF CLIMATE CHANGE IMPACT AND THE USE OF SCENARIOS
9 Nov. 2018 - First science-practice lab held in Paris
A key aspect of ClimINVEST is to bring climate scientists & investors together in science-practice labs to co-develop tailored tools for assessing physical climate risk & identifying climate-resilient investment opportunities. The first science-practice lab was held in Paris 9 Nov. 2018 and brought together scientists and experts from ClimINVEST French partner institutions I4CE - Institute for Climate Economics, Carbone 4 and Météo France and an initial working group of eight French financial institutions.
More science-practice labs will also be organised by partners Wageningen Environmental Research and Climate Adaptation Services in the Netherlands and by project lead CICERO Center for International Climate Research in Norway.