Physical Climate Risk
We deliver advanced physical climate risk insights with comprehensive solutions across assets, portfolios, and supply chains; giving you a high‑resolution view of physical risks and trends to turn uncertainty into opportunity.
Turn Adaptation into Advantage
S&P Global’s Physical Risk solution delivers clarity at the resolution your decisions demand—combining granular geospatial data, advanced modelling, and robust methodologies to link real-world exposure to financial impact. Pinpoint where risk lies, what it will cost, and how it will evolve across assets, companies, and portfolios. As climate change reshapes outcomes, our workflow tools provide the transparency and execution you need to turn adaptation into your next advantage.
Physical risk doesn’t discriminate. But your data should.
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.
S&P Global Physical Climate Risk
Get a clearer view of your exposure with climate risk analytics. Our latest generation climate risk models are AI enhanced with new absolute risk metrics spanning all hazard categories - providing critical insight, precisely where you need it.
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.
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One-Click Scenario Analysis
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Science-Driven Insight
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Assessment of Vulnerability
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Financial Loss Calculation
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.
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.
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.
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.
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