A scientific approach to sovereign climate risk assessment

In a webinar hosted by Risk.net, panellists from Scientific Climate Ratings, EDHEC Climate Institute and Amundi discussed the challenges of calculating sovereign climate risk and the steps taken in this direction by Scientific Climate Ratings.

Understanding sovereign climate risk is hugely important but enormously challenging for many organisations. While great strides have been made in recent years when calculating the financial impact of climate risk on corporate and financial firms, far less progress has been made in assessing sovereign climate risk.

The product, which focuses on chronic physical climate risk, is designed to be integrated into analysts’ broader risk models. “The idea is to provide everyone with a clear, understandable metric that is quantified and that can be ingested into your own risk modelling,” said Thibaud Barnaud, climate risk manager at Scientific Climate Ratings.