Physical Climate Risk
Discover comprehensive data coverage and hyper-local insight on physical climate risks and trends across asset locations, investment portfolios and supply chains, addressing climate change and risk.
Climate Risk is Financial Risk
Climate change amplifies traditional financial risks like credit, market and operational risk, potentially leading to broader economic instability through significant losses and asset repricing. Mitigating financial losses tied to physical and transition risks remains a top priority of global institutions. While climate is often viewed exclusively through a risk-focused lens, our solutions offer perspectives on all elements of climate, including risk, opportunity, impact, compliance, and engagement.
Understanding the financial consequences of climate hazards: 2030s vs 2050s vs 2090s
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Financial Impact by Sector
Financial Impact by Sector
Physical climate risk financial impact exposure is not evenly distributed across sectors. Within the S&P Global 1200, companies in the Information Technology, Real Estate, and Communication Services sector are most likely to hold assets at high financial risk. However, exposure to high financial risk assets increases across all sectors between the 2050s and the 2090s.
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Financial Impact by Index
Financial Impact by Index
These charts show the weighted average financial impact metrics under the moderate-high (BAU) scenario in 2030, 2050, and 2090. Water stress and extreme heat present the highest financial impacts to 2050, with Drought becoming present in the 2090 scenarios, emphasizing the importance of climate risk monitoring.
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Financial Impact by Industry
Financial Impact by Industry
These charts present the weighted average financial impact metrics for each GICS sector in the S&P Global 1200 and the contribution of each climate hazard under the moderate-high scenario in the 2050s and 2090s. The Communication Services sector has the highest financial impact in the 2050s due to sensitivity to heat and water stress. Water stress and extreme heat present the highest costs to 2050.
Financial Impact by Sector
Physical climate risk financial impact exposure is not evenly distributed across sectors. Within the S&P Global 1200, companies in the Information Technology, Real Estate, and Communication Services sector are most likely to hold assets at high financial risk. However, exposure to high financial risk assets increases across all sectors between the 2050s and the 2090s.
S&P Global Physical Climate Risk
Get a clearer view of your exposure with climate risk analytics. Our latest generation climate risk models, geospatial data, ownership mapping and vulnerability pathways, and actionable financial impact analysis provide a physical climate risk assessment.
Science-Based Methodology
Robust methodology leverages the latest available climate change models (CMIP6), ensuring an accurate physical climate risk assessment.
10 Climate Change Hazards
Comprehensive global coverage of ten key hazards: coastal flood, fluvial flood, pluvial flood, drought, water street, extreme heat, extreme cold, tropical cyclone, wildfire and landslide.
Financial Impact Assessment
Proprietary impact functions model the vulnerability of >250 unique asset types to the financial consequences of climate change hazards
Sovereigns and Municipalities
Global coverage of over 200 countries, 2,100 subnationals, all 50 U.S. states and counties (3,100).
7M+ Asset Locations
Built on a proprietary database of over 7 million asset locations linked to corporate entities and ultimate parent entities, enhancing geo-specific analysis.
99% of Global Market Cap
Coverage of more than 70,000 companies representing over 99% of global market capitalization.
The S&P Global Climanomics® Platform
The Climanomics platform was developed to provide you with a rigorous, bottom-up methodology to assess the potential financial impact of climate-related risks and embed these risks into global decision-making, helping investors and corporations lead their organizations confidently to a more resilient future.
One-Click Scenario Analysis
Climate scenario analysis provides actionable insights about potential future outcomes and is recommended by the TCFD for reporting purposes. A set of scenarios, Shared Socioeconomic Pathways (SSPs), focus on projecting socioeconomic changes and when used alongside the RCPs capture both physical and socioeconomic factors.
Science-Driven Insight
S&P Global Climanomics starts by utilizing publicly available raw climate data that may include information on factors such as temperature and precipitation. This is used by expert S&P Global scientists to build and refine their own climate models.
Assessment of Vulnerability
S&P Global Climanomics has a growing library of proprietary impact functions that model the vulnerability of 270+ different asset types to climate-related hazards, based on a wide range of factors specific to each one.
Financial Loss Calculation
Assessments of hazards and of vulnerabilities are considered for each asset to estimate the average annual loss associated with climate risk to provide an informative evaluation of exposure.
Integrate Hyper-Local Weather and Climate Risk Data
The Weather Source dataset offers a single source of truth for hyper-local weather and climate data to quantify weather related risks and trends.
Hourly & Daily
Weather observations
Up to 15 days
Weather forecasting
> 5.7 M
International postal codes
> 40K
U.S. ZIP Codes covered
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