Currently, companies are not able to quantify their exposures to physical climate risk. In turn the financial institutions which loan and invest in these companies cannot measure the physical climate risk embedded in their portfolios. Climate disasters have a direct impact on corporate balance sheets, regulatory capital ratios, and investment returns. But markets are struggling to price this risk.
The Gro platform allows users to measure the exposures of assets to physical climate risks. Gro combines high resolution environmental data with machine-learning to create climate indices. With the geospatial computational capabilities in Gro, we can estimate sensitivities of specific physical assets (e.g., mining operations, farmland, data centers, ports) and markets (travel, fertilizer, real estate) to each climate index.
Companies such as publicly listed corporates, financial institutions, and asset managers can use the Gro platform to measure their physical climate risks:
Gro’s Climate Indices and the computed loadings of individual securities to them can assist asset managers and financial institutions:
In addition to the Gro Climate Indices which measure realized changes in climate, the Gro Platform offers Scenario-based Climate Index Projections. We can also combine these with our geospatial computation engine to measure the expected impact of climate change on physical assets through the year 2100 under different GHG emission scenarios.
Modeling future climate: Change in 36-month average of daily high temperatures - Feb 1, 2020 to Jan 1, 2050 under a “business as usual GHG scenario.”.
Gro is building a unique group of indices and sub-indices defined by three key attributes:
Interested in seeing applications for your team? Please contact us for a walk-through.