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Photo by Anita austvika on unsplash.

Photo by Anita austvika on unsplash.

Bridging the gap between climate data and needs of financial institutions

Published 07.07.2020

Financial institutions face challenges in identifying and processing data on climate hazards to assess physical climate risk and fulfil TCFD-reporting requirements. Results from ClimINVEST and similar projects will be used to produce a dataset of climate hazards that will be a reference for assessing physical climate risk for different sectors and assets, in line with TCFD recommendations.

The dataset to be developed is based on data products from the Copernicus Climate Change Service (C3S) Climate Data Store (CDS) and additional sources.

There are thousands of data points and indicators for climate hazards that could be relevant for financial or policy decision makers in specific or global contexts. How did you decide which data points or indicators to use?

“We rely on three sources for stocktaking. The recommendations in TCFD reports from various institutions, practices and needs of the TCFD consultants and the results of projects such as ClimINVEST, explained Harilaos Loukos, CEO of The Climate Data Factory, who is leading the Copernicus-tendered project CDF4TCFD where CICERO is a partner. The project is supported by the United Nations Environment Programme Finance Initiative (UNEPFI). The data will be available in the Climate Data Store late 2020 free to use for all and have a dedicated information section on the C3S website.

“There will be no particular expertise needed to use the data. We will follow the recommendations of the TCFD community to provide the recommended data. If the user has sufficient expertise to elaborate a disclosure this should be enough,“ explained Loukos.

The format will be csv when possible (for Excel), mostly for time series. For 2D data netcdf will be the original format, but other formats will also be considered. Any software that can read netcdf will be possible to use (e.g. R, Panoply, ArcGIS, etc.).

“A toolbox is available on the C3S CDS, so it will be possible to extract data and visualize maps. Even calculate indices”, Loukos explained.

“We are happy that the work in the ClimINVEST project will be further utilized in order to provide additional sources and guidance for the financial sector in assessing physical climate risk”, said Iulia Marginian, ClimINVEST project manager from CICERO.