Missing the forest for the trees. A review of climate risk data providers as part of the Sustainable Edge project

Abstract

The financial sector is beginning to integrate climate into their business models and demanding climate related information tailored to financial decision making. A growing market of services and information sources exist and are being developed to meet this demand. We briefly review possible approaches: environmental social and governance (ESG) information covering climate, specialized approaches to physical and transition risk and approaches combing aspects of climate risk and impact. We also present a discussion on how different sources can be used to understand climate risks in a sector and provides insights on the user perspective based on earlier work by CICERO. We discuss the limitations of existing approaches and present a new approach to corporate climate risk assessment that will be developed in the Sustainable Edge project