Climate Risk Platform

Relationship to GRESB

  • No. The Climate Risk Platform is completely separate from the GRESB Assessments. It is a separate service that GRESB believes can be useful for many of its Members and will not influence your GRESB Assessment in any way.

Scope

  • For transition risks, please refer to our Transition Risk Tool.

  • Yes.

  • The current offering on the Platform is scoped to provide quantifications of physical climate risk “exposure”. That is, a measure of the likelihood or probability of a particular phenomenon above a specific threshold of severity, occurring at a particular location, within a specific time frame. In the context of physical climate risk, the phenomenon might be an acute hazard (e.g., tropical cyclone or river flood) or a chronic stress (e.g., water stress or sea-level rise).

    As such, it does not take into consideration the real asset type.

    An estimation of Value at Risk (VAR) would require an estimation of sensitivity, adaptive capacity, and strategic planning in addition to exposure. These elements are very asset-specific and should be considered carefully. While GRESB is involved in multiple initiatives focused on the accurate and standardized translation of physical climate risk exposures into financial impacts, we do not yet provide an estimation of VAR on the Platform.

  • The current offering on the Platform is scoped to provide quantifications of physical climate risk “exposure”. That is, a measure of the likelihood or probability of a particular phenomenon above a specific threshold of severity, occurring at a particular location, within a specific time frame. In the context of physical climate risk, the phenomenon might be an acute hazard (e.g., tropical cyclone or river flood) or a chronic stress (e.g., water stress or sea-level rise).

    As such, it does not take into consideration the real asset type.

    An estimation of Value at Risk (VAR) would require an estimation of sensitivity, adaptive capacity, and strategic planning in addition to exposure. These elements are very asset-specific and should be considered carefully. While GRESB is involved in multiple initiatives focused on the accurate and standardized translation of physical climate risk exposures into financial impacts, we do not yet provide an estimation of VAR on the Platform.

  • The current offering on the Platform is scoped to provide quantifications of physical climate risk “exposure”. That is, a measure of the likelihood or probability of a particular phenomenon above a specific threshold of severity, occurring at a particular location, within a specific time frame. In the context of physical climate risk, the phenomenon might be an acute hazard (e.g., tropical cyclone or river flood) or a chronic stress (e.g., water stress or sea-level rise).

    As such, it does not take into consideration the real asset type.

    An estimation of Value at Risk (VAR) would require an estimation of sensitivity, adaptive capacity, and strategic planning in addition to exposure. These elements are very asset-specific and should be considered carefully. While GRESB is involved in multiple initiatives focused on the accurate and standardized translation of physical climate risk exposures into financial impacts, we do not yet provide an estimation of VAR on the Platform.

Accessibility

  • Yes. The Climate Risk Platform can procure physical climate risk exposure data based on location alone. All you need in order to purchase data for an asset is its name and an address. Thus, the data provided can be used in due diligence processes.

  • No. However, the Climate Risk Platform pulls asset data from the same asset database when you submit your assets as part of the GRESB Assessment. Thus, if you’ve already submitted addresses for your assets as part of your Assessment completion, then you already have everything you need to purchase climate exposure data on the Climate Risk Platform.

  • When you purchase data for an asset, you will receive all available risk factors from that provider for that asset. A list of all risk factors provided by each third party data provider are made available to you on the Data Specifications page, accessible from the Climate Risk Platform landing page in the GRESB Portal.

  • You can purchase data for any selection of assets you are interested in.

  • The Climate Risk Platform can be used by Infrastructure Funds and Assets, although it is not accessible through the Portal for Infrastructure Members. If this is relevant for you, please contact GRESB to discuss facilitating this.

  • None of the data is shared with Investors. GRESB is currently developing the capability to automate report-generation from the data, which may be then shared by the Asset Managers with their respective Investors. If you would like to be involved in discussions around what type of information can/should be shared and how it is presented, please contact GRESB to join the GRESB Climate Risk Industry Working Group.

  • Yes. The Climate Risk Platform can be accessed year-round and can be used to analyze assets or portfolios at any time.

  • Any users who have been given access to asset data by the Account Manager of a reporting entity/portfolio will have access to the Climate Risk Platform.

  • Currently, Investors cannot access the data of the reporting entities/portfolios in which they invest. However, if an Investor has the addresses of the assets for it would like to purchase the climate risk exposure data, then the Investor can purchase the data directly. Please reach out to GRESB for more information on how.

Risk Factors & Data

  • This depends on the third-party provider. A full list of risk factors, their descriptions, and the climate scenarios, timeframes, and data resolutions for each are provided on the Data Specifications page in the GRESB Portal. Simply navigate to the landing page of the Climate Risk Platform within the GRESB Portal and click Data Specifications.

  • This depends on the third-party provider. A full list of risk factors, their descriptions, and the climate scenarios, timeframes, and data resolutions for each are provided on the Data Specifications page in the GRESB Portal. Simply navigate to the landing page of the Climate Risk Platform within the GRESB Portal and click Data Specifications.

  • This depends on the third party provider and risk factor in question. Not all risk factors require super granular spatial data. For Munich Re, the resolution ranges from between 30m x 30m to 25km x 25km. A full list of risk factors, their descriptions, and the climate scenarios, timeframes, and data resolutions for each are provided on the Data Specifications page in the GRESB Portal. Simply navigate to the landing page of the Climate Risk Platform within the GRESB Portal and click Data Specifications.

  • This depends on the third-party provider and the risk factor in question. Generally, the scores are updated every 2-5 years.

  • No. In order to receive updated data, you must re-purchase the data for the selected assets.

  • This depends on the third-party provider and the risk factor in question. For Munich Re, the hazard scores are generally presented in ‘return period,’ a metric often used in the insurance industry that quantifies the probability in a given year that a hazard above a specific threshold of severity will befall a particular location. This means that it is more absolute and that a judgment of relative severity can be made by the user to fit his or her use case.

  • Having an average score hides potential exposure to extreme hazards. Additionally, different risk factors are more relevant to specific real asset types, making it difficult to define relative weightings of severity, let alone absolute ones. For these reasons, the decision was made not to combine scores across vastly different hazard and stress types, and rather to retain the information portrayed in the disaggregated scores.

  • The user cannot currently leverage extra information (e.g. GAV) in the physical climate risk exposure dashboard. However, all purchased data is readily exportable into an excel file, where asset-specific information (e.g. GAV) can then be appended and folded into additional analysis.

  • When comparing climate risk data providers, start with three high-level categories of consideration.

    1. Scope: What does the data cover? Consider the three following sub-categories: 
      1. Geospatial coverage: Does the data cover the area/region in which I am interested?
        Munich Re’s data has global coverage.
      2. Timeframe: What timeframes does the data cover?
        Munich Re reports data across 3 timeframes (present, 2050, 2100).
      3. Risk Factors: What risk factors are covered by the data?
        Munich Re has one of the most expansive ranges of risk factors, covering 14 different hazards/stresses.
    2. Output: On what is the data providing information, and in what format?

      On the GRESB Climate Risk Platform, Munich Re provides data on Hazard and Exposure, and generally expresses these in terms of return periods. Other data providers might go further and include information on Vulnerability to arrive at estimations of Financial Impact. When evaluating these options, it is important to understand the extent of the assumptions that have to be made in order to make such calculations to ensure that those assumptions are appropriate to your purpose.
    3. Methodology: What underlying datasets are used? How are they combined? Do they show an appreciation for varying levels of risk tolerance? etc.

      This can only be understood upon careful study of the methodology of each provider. Ask for documentation. Understand how their scores use relative scoring vs. absolute scoring. Does their combination of forward-looking models smooth out potential weather extremes in which your firm is interested? Etc.
      Upon purchase of data from the Climate Risk Platform, Munich Re provides detailed accounts of the underlying indicators for each of its risk factors and how those sub-indicators are combined and built up into the risk factor indices. Additionally, if such documentation is required, you will be provided an avenue through which Munich Re will be able to provide additional insight.

    In the end, it is up to the consumer given their needs around scope, output, and methodology. We’ve found Munich Re to be a good provider to host on our platform because 1. they have an extensive scope that is one of the best, 2. we’ve focused on providing very robust hazard/exposure scores as opposed to very loose financial outputs, and 3. a deep dive into their methodologies has demonstrated a high degree of proficiency and respect for the underlying science.