Physical Climate Risks
For taxonomy assessment according to Appendix A, ESG risk management and CSRD disclosure
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To assess the location-related physical climate risks, Climcycle uses the data sources proposed in the regulatory framework of the EU taxonomy. This regulatory framework also provides a framework for the identification, projection and assessment of physical climate risks. Up to 18 acute and chronic climate risks are projected using climate scenarios (RCP scenarios) up to the year 2100 in order to obtain a conformity assessment in accordance with Annex A of the EU Taxonomy.
The model is continuously updated with the latest findings from climate research and the available climate risk data.
Input & Output
To ensure user-friendliness, the input fields have been kept as minimal as possible. In addition to the address of the location to be assessed, only the start and end dates need to be defined.
Optionally, the type of economic activity can also be specified in order to filter risks that are not relevant to the economic activity.
Methodology
Our module is based on the most granular, freely available climate data and is based on the legal requirements of Annex A of the EU Taxonomy.
Coverage
The module currently covers the whole of Europe. Worldwide coverage is already being worked on.
Differentiation
All analyses can be carried out at deal level. Collateral and own holdings can also be analysed.
Use Case
Automated calculation of physical climate risks
The climate cycle analyses of physical climate risks are used in four areas in particular:
- EU taxonomy conformity assessment
- CSRD / ESRS Disclosure in E1
- Pillar III Disclosure Template 5 (CRR 449a)
- ESG risk management
