Carbon4 Finance - CLIMATE RISK IMPACT SCREENING (CRIS) for Climate Physical Risk
Data category
- Environmental data
- Indices/Exchange data
- Rankings
- Ratings
- Research data
- Verification/Certification/External opinion
- portfolio data; asset data; underlying data
The data offers solutions for:
- Carbon footprinting
- Climate scenario analysis
- Environmental impact analysis and insight
- Geospatial/location data
- Investment decisions and portfolio insight
- Nature-based information
- Nature-based information: Biodiversity
- Nature-based information: Land use
- Nature-based information: Water
- Norms-based screening
- Physical risk
- Reporting: CSRD
- Reporting: EU Regulations
- Reporting: ISSB standards
- Reporting: Impact
- Reporting: Other Regulations
- Reporting: SEC climate
- Reporting: SFDR
- Reporting: TCFD
- Reporting: TNFD
- Reporting: UN SDGs
- Temperature alignment
- Transition plan assessments
Who are the data users?
- Corporates
- Financial institutions
- Government
- Investors
- Trustees
- NGO; Asset Managers; Banks; Asset Owners; Index providers
What asset class does the data cover?
- Fixed income
- Listed equity
Brief description of the data offering
Carbon4 Finance methodology on physical risks is called CRIS (Climate Risk Impact Screening). CRIS is a unique method to assess the impacts of physical risks from climate change on financial assets.
In the CRIS methodology, each climate risk rating is a function of location-specific climate hazards and sector-specific vulnerability.
It is a combination of climate projections for specific areas (i.e. risks related to sea-level rise, increase in temperature, heat waves, floods, etc.) and an issuer's sector-specific vulnerability.
- Concretely, CRIS maps companies' activities based on their financial reports (sectoral and geographical breakdowns of fixed entity assets or revenues depending on the sectoral capital intensity). All sovereigns are covered as well with a similar methodology.
- Climate information captures the change in intensity (or frequency) of climate-related hazards in the future due to climate change, based on scientific projections and location-specific aggravation factors.
- Sectoral vulnerability profiles integrate the potential impacts on entity assets, expenses, and sales based on an exhaustive review of sectoral and past events reports.
The CRIS overall coverage includes :
- Seven direct hazards, acute (event-driven) and chronic (long-term shifts).
- Nine risk-aggravating contexts that lead to nine indirect climate hazards (such as floods, for example).
- 3 IPCC climate scenarios (RCP 4.5, RCP 6.0 and RCP 8.5) and 2 future time horizons (2050 and 2100).
The seven direct climate hazards taken into account are :
- Increase in average temperature
- Changes in the intensity or frequency of heat waves
- Changes in the frequency and duration of drought extremes
- Changes in rainfall patterns
- Changes in the intensity of frequency of rainfall extremes
- Sea level rise
- Changes in the intensity or frequency of storms
These seven direct climate hazards take into account nine indirect aggravating factors :
- Biodiversity migration and loss
- Air quality degradation
- Urban heat island intensification
- Water scarcity
- Wildfires
- Floods (river & groundwater flood)
- Landslides and mass movements
- Coastal floods
- Coastal erosion
The climate hazard rating is given for each hazard as well as aggregated at portfolio level.
Our data is accessible through our platform, SFTP stream and third-party providers. We offer our clients an unlimited number of users and our platform works with Excel import/export and allows for portfolio aggregation.
Where and how do you source your data?
First of all CRIS maps a company’s activities based on its financial reports (sectoral and geographical breakdowns of fixed entity assets or revenues depending on the sectoral capital intensity). All sovereigns are covered as well with a similar methodology.
In Climate Risk Impact Screening (CRIS) methodology, climate data are also sourced from the IPCC with a multi-model approach.
We use 3 scenarios as described above, which are consistent with :
- RCP 4.5 and SRES B1
- RCP 6.0 and SRES A1B
- RCP 8.5 and SRES A2
The CRIS database is able to take into account several types of data :
For sovereigns
To assess a country's actual climate resilience, CRIS (Climate Risk Impact Screening) goes beyond traditional financial metrics by evaluating its intrinsic vulnerability across four key pillars:
- Human & Health Exposure: Mapping population shares directly threatened by extreme climate hazards, with a specific focus on highly vulnerable demographics.
- Natural Capital Dependence: Measuring how much national wealth relies directly on nature.
- Geographic & Ecosystem Risks: Charting territorial fragility based on topography.
- Economic Impact & Infrastructure Resilience: Modeling the direct financial hit of disasters correlated with the quality of existing infrastructure to withstand them.
Those indicators are based on open-source data, such as the World Bank and UNEP open data, among others.
For corporate
CRIS integrates :
- the vulnerability of the country of the company into a corporate’s rating.
- the vulnerability of each business segment of a company via vulnerability indicators (workforce intensity of production, the proportion of outdoor workers…).
What is the cost for your data offering?
The cost is discussed during the calls and depends on the client's budget.