Climate change is increasingly affecting financial assets across the globe. The ClimINVEST project brings scientists and investors together to develop tailored tools for assessing physical climate risk and identifying climate-resilient investment opportunities.
Extreme weather events across the world have already caused exorbitant costs for businesses and societies. Climate scientists expect the frequency and severity of natural hazards such as windstorms, sea-surges, heavy precipitation, floods, droughts and heat waves to increase. Even impacts that were anticipated over a much longer time horizon like sea level rise are observed today. These changes are exacerbated by interactions with extreme weather events.
Impacts from such events can place a severe and potentially abrupt strain on company facilities, supply chains, employees and the communities on which companies depend. Opportunities can also arise from investing in sectors or companies that are well positioned to adapt to physical climate change.
Yet, nearly half of the world’s biggest asset owners do nothing to mitigate climate risk. Much of the information available to investors today (e.g. carbon footprints) ignores the physical impact of climate change.
Developing climate services for and with investors
Working closely together with an international investor group and an interdisciplinary team of scientists from Norway, France and the Netherlands, ClimINVEST will develop improved indicators and tools for communicating climate information to financial decision makers. Improved indicators of non-financial information on climate risk, particularly for physical impacts, are necessary for better investment decisions in a changing climate.