ESG Data Guide 2024

Morningstar Sustainalytics - Physical Climate Risk Metrics

Data category

  • Environmental data
  • Rankings
  • Research data

The data offers solutions for:

  • Climate scenario analysis
  • Environmental impact analysis and insight
  • Investment decisions and portfolio insight
  • Reporting: Other Regulations
  • Reporting: TCFD
  • Temperature alignment

Who are the data users?

  • Corporates
  • Investors

Brief description of the data offering

Morningstar Sustainalytics’ Physical Climate Risk Metrics help investors understand their direct and indirect exposure to physical climate change, and the potential financial impacts to their portfolio companies. With coverage of over 12 million assets, investors can leverage Physical Climate Risk Metrics to manage their portfolio exposure, fulfil reporting requirements, and prioritise topics and companies for engagement activities.

Where and how do you source your data?

Asset location data is drawn from numerous proprietary and public databases to search company names, trading names and subsidiaries, including both owned and leased operational assets worldwide. An extensive data grooming and Quality Assurance process follows to assess confidence in the resulting dataset. Hazard risk data based on two climate change scenarios are generated with XDI’s Climate Risk Engines, which downscale global climate models into regional models, and combine with localised ancillary data (e.g. topography, elevation). To translate the physical climate risk metrics into financial losses, key financial metrics are sourced from Morningstar’s financial report databases of standardised company financial reports.

What is the cost for your data offering?

Our pricing is based on scope of that data needed and each client’s specific use case. 

What are the key attributes that differentiate the data you offer?

Morningstar Sustainalytics’ Physical Climate Risk Metrics are differentiated by:

  • Granular Insights into Financial Impacts of Physical Climate Risks: Our metrics offer visibility into the financial impacts of physical climate risk, considering a company’s revenue, physical asset value, and operating cash flow.
  • Wide-ranging Metric Coverage: Metrics span the direct and indirect impacts of physical climate change, which cover the full business value chain, enabling investors to assess their exposure to physical climate risks and support more effective TCFD reporting.
  • Superior Coverage on a Company’s Physical Assets: The metrics offer a bottom-up assessment of physical climate risk that span over 12 million assets, covering 135 sectors and 235 countries.  
  • Multiple Views Built into our Reports that Support our Top-Line Assessments: Rich data underpins our exposure reports to enable analysis through multiple lenses, including hazard, country, loss amounts, time series and climate scenarios.