Physical
Risks

Climate Risk Impact Screening (CRIS) is a method developed for financial service providers to assess the exposure of their portfolio to climate-related physical risks. This method, designed to flag potential risks and inform investment strategy, is a function of location-specific climate hazards and sector-specific vulnerability.

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Physical Risks Screening

holistic solution for resilience investment

Extending climate reporting to adaptation and physical risks, enabling risk management and dialogue engagement with the underlying assets.

Combining Climate Hazards & Vulnerability Profile

Our methodology is based on geographic and sectorial breakdowns of each company’s activity, resulting in an in-depth assessment of portfolio’s physical vulnerability to climate change.

Value chain approach

Our methodology uses a sector specific value-chain vulnerability assessment, enabling comprehensive risk assessment at entity level.

Science-based methodology, based on IPCC Scenarios

The three IPCC scenarios used, which describe GHG emissions trajectories and their respective global warming levels (low, moderate and high), are universally recognized and provide a consistent foundation for scenario testing.

Physical risk rating at entity & portfolio level

At entity level, ratings calculated for each activity and geographic region are then aggregated in order to quickly identify the differences in risks incurred by companies. At portfolio level, scores of each underlying entity are ultimately aggregated, helping to understand and manage the portfolio's level of risk.

Compliant with highest ESG reporting standards

We align with leading frameworks (TCFD, article 29).

Leveraging on a team of 20+ climate data analysts

As well as the savoir-faire of Carbone 4, a leading French low carbon strategy consulting firm, with a confirmed expertise in physical risks and climate adaptation.

Technical support and physical risks data training

We ensure you handle perfectly our solution thanks to a technical training provided by a dedicated analyst.

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Comprehensive risk rating

multi-dimensional approach

Combining location-specific climate hazards and sector-specific vulnerability, we provide granular data for you to leverage on, enabling precise physical risks reporting and informing your investment strategy.

7 direct hazards

increase in average temperature, sea level rise, as well as changes in: heatwaves, drought extremes, intensity or frequency rainfall extremes, rainfall patterns, intensity or frequency of storms

9 risk-aggravating factors

biodiversity migration and loss, air quality degradation, urban heat island intensification, water scarcity, wildfires, floods (river & groundwater flood), landslides and mass movements, coastal floods, coastal erosion

Geographical approach based on revenues

exposure to physical risk is assessed at the company’s sub-activities level for a total of 60+ different sub-sectors and more than 210 countries and 8 different regions of activity

3 IPCC scenarios, 2 time horizons

3 projections: low - below 3°C (RCP 4.5) , moderate - above 3°C (RCP 6) and above - 4°C (RCP 8.5) & 2 time horizons: 2050 & 2100

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5,000+ entities, 112 000+ securities

60+ sectors and 210 countries

Asset classes: Listed corporates (equities & bonds),Sovereign bonds, Loans

Bespoke analysis upon request

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CLEAR AND EFFECTIVE VISUALS

powerful analytics platform

Giving you an at-a-glance overview of your portfolio performance to navigate risk and identify opportunities, while meeting reporting standards.

References

Carbon4 Finance enables us to offer the first life insurance portfolios aligned with the Paris Agreement.

Joseph Choueifaty
CEO

The stakes are high: it is a question of bringing simplicity, clarity and transparency to the financial sector, which is today opaque and complex. With Carbon4 Finance, we wanted to meet this challenge.

Léo Garnier
General manager

We are excited that Carbon4 Finance and CDC Biodiversité have built this important database. It provides us a lay of the land of biodiversity impact across countries and sectors, as well as at the company-specific level. We are delighted to facilitate their entry into the United States.

Sudhir Roc-Sennett
Head of ESG and Thought Leadership