Technology & Data

Bloomberg, Riskthinking.AI Launch Physical Risk Indicators

Financial data firm Bloomberg and analytics provider Riskthinking.AI have introduced physical risk indicators, covering all climate scenarios endorsed by the Intergovernmental Panel on Climate Change (IPCC). Used as part of a tool for assessing climate-related vulnerabilities, the indicators offer investors and corporates a means for evaluating exposure to extreme weather events such as floods, droughts, wildfires, and other climate risks. Riskthinking.AI employs Bloomberg’s physical assets data on nearly 50,000 companies, spanning manufacturing sites, energy plants, mining operations, office buildings, and retail sites, to calculate a company’s physical risk exposure level. Using a bottom-up approach, climate conditions at each asset location are analysed, enabling users to pinpoint specific threats. These indicators can be integrated with Bloomberg’s global supply chain data to reveal vulnerabilities within key suppliers, potentially impacting company operations. “Achieving reliable assessment of exposure to physical hazards relies on large amounts of geospatial and climate data to effectively account for the uncertainty inherent in future projections,” said Patricia Torres, Global Head of Sustainable Finance Solutions at Bloomberg. “By bringing together cutting-edge climate science with investor grade physical assets data, we can help investors and companies to better navigate the increasingly complex financial and regulatory environment regarding physical risk.” 

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