Iceberg Data Lab - Physical & Transition Risk
Data category
- Environmental data
- Research data
The data offers solutions for:
- Environmental impact analysis and insight
- Investment decisions and portfolio insight
- Physical risk
- Reporting: EU Regulations
- Reporting: ISSB standards
- Reporting: Impact
- Reporting: Other Regulations
- Reporting: SFDR
- Reporting: TCFD
- Transition risk
Who are the data users?
- Financial institutions
- Investors
What asset class does the data cover?
- Fixed income
- Listed equity
- Private equity
- Real assets
- Real estate
Brief description of the data offering
Physical Risk
IDL's Physical Risk Tool assesses physical risk in an issuer’s direct operations and throughout the value chain (upstream and downstream). The results are provided by NACE code for an issuer (all scopes), at issuer level (consolidated), and finally at a portfolio level.
Our physical risk assessment is done on a NACE basis, enabling IDL to provide detailed information on which economic activity has the highest physical risk.
The IDL Physical Risk tool includes the following sub-risks, per country and per year:
- Ecosystem dependency: e.g. agriculture, textile, production.
- Risk related to infrastructure (fixed assets): e.g. factories, warehouses, mines.
- Temperature sensitivity: e.g. agricultural production, forestry.
- Sensitivity to electricity: e.g. steel production, data centres.
- Transport dependency: e.g. travel agencies, freight.
For each sub-risk: a score is given from 0 (lowest risk) to 3 (highest risk). IDL also considers risks for upstream, downstream activities and direct impacts.
The sub-risks are then aggregated to an issuer level based on sectoral revenue weighting to give a final Physical Risk Score ranging from 0% to 100%.
Transition Risk
IDL's Transition Risk Tool assesses transition risk both in direct operations and throughout the value chain (upstream and downstream). The results are provided by NACE code for an issuer (all scopes), then at issuer level (consolidated) and finally at a portfolio level.
Our transition risk assessment is done on a NACE basis, enabling IDL to provide detailed information on which economic activity has the highest transition risk.
IDL Transition risk tool includes, for each country:
- Regulatory risk: Sector sensitivity to climate transition measures.
- Consumer choice risk: Sector exposure to mass consumers and climate-related reputation risks.
- Transition cost risk: Sector dependence on energy, especially fossil fuels.
For each sub-risk: a score from 0 (lowest risk) to 3 (highest risk). With direct operations, IDL also considers risks for upstream, downstream activities and direct impacts.
The sub-risks are then aggregated to an issuer level based on sectoral revenue weighting to give a final Transition Risk Score ranging from 0% to 100%.
Chartis Research ranked in 2024 our Climate Risk metrics in their inaugural report about the best Climate Risk solutions, appraising existing solutions, their model and technology to cover Transition and Physical Risks.
Where and how do you source your data?
Company-reported data and sustainability reports, when available and reliable. If company data is not available or incomplete, IDL models the data using sector-, commodity-, and geography-specific parameters.
Open-source databases provided by governments, central banks, and scientific organizations.
Life Cycle Assessment (LCA) databases and financial/environmental datasets for product-level impacts.
Physical flows and input-output models (such as our proprietary Wunderpus model) to estimate emissions through the entire value chain, covering scopes 1, 2, and 3 for high granularity and sector comparability.
Independent scientific studies and internationally recognized frameworks (e.g., IPCC, IEA, SBTi, TNFD, PBAF) for methodologies and benchmark data.
What is the cost for your data offering?
Pricing depends on coverage requirements, and can be provided upon request at [email protected]