Scientific Climate Ratings

Quick description

Scientific Climate Ratings is an independent climate risk data and analytics provider born from EDHEC’s Climate Finance applied research ecosystem.

It provides forward-looking assessments that quantify the financial materiality of climate risks for infrastructure assets and companies worldwide.

The methodology combines high-resolution geospatial data, advanced climate and financial models, and the world’s largest repository of decarbonisation and resilience strategies to deliver a comprehensive assessment of climate-related risks and opportunities:

  • Transition Risks: arising from carbon policy change, and the global shift in demand to a low-carbon economy.
  • Physical Risks: driven by acute and chronic climate hazards, including floods, storms, heatwaves, and wildfires, assessed at asset level.
  • Adaptation and Resilience effectiveness: evaluating how mitigation, adaptation, and resilience strategies reduce asset-level vulnerability and potential financial losses in asset value.

Sustainable finance associated use case

  • Assessment and Quantification of Physical Risks (Evaluation of both chronic and acute risks, including geospatial exposure analysis and asset-level vulnerability scoring
  • Assessment and Quantification of Transition Risks (Analysis of risks arising from the transition to a low-carbon economy, including policy and regulatory changes, carbon pricing, and market demand shifts)
  • Climate Risk Platform (An online platform enabling fast and streamlined climate risk analysis at both asset and portfolio levels)
  • Portfolio Risk Concentration Analysis (Identification of climate risk hotspots across portfolios, highlighting concentrations by asset, sector, and geography, and enabling targeted risk mitigation and capital allocation strategies)
  • Adaptation Value Analysis (Evaluation and integration of decarbonisation and resilience strategies, and the impact on risk reduction)
  • Climate Stress Testing (Forward-looking stress tests across multiple climate scenarios, incorporating probability-weighted pathways to assess assets and portfolios resilience under different trajectories)
  • Financial Impact Modeling (Translation of climate risks into quantified financial impacts on asset valuations)
  • Macro Scenario Analysis (Integration of macro-economic variables under different climate scenarios to assess portfolio impacts)
  • Reporting (CSRD, ISSB, TCFD, SFDR)







A tool developped by:                 


In partnership with:                             


Financed by:                 
     

Credit : This tool has been made in the context of the EquipEx+ ANR-21-ESRE-0036:

Special thanks to Maria VILLALONGA, Mohamed FAHMAOUI, Thibaud BARREAU and all other contributors.