We’re excited to announce a new partnership with XDI (Cross Dependency Initiative) and Climate Arc to develop new physical risk and adaptation capabilities that will introduce much needed transparency and accountability of corporations globally.
Professor Michael Obersteiner, Director of the Environmental Change Institute (ECI), said:
TransitionArc makes freely available vital information on firms’ alignment with the 1.5°C climate goal. We’re delighted to be working with Climate Arc and XDI to bring our scientific and technical capabilities to bear to do the same for climate adaptation; providing open, high quality and consistent information to the markets on firms’ adaptation to climate change and physical and nature-related risk management.
With this information, for the first time, financial institutions can begin to fully embed these risks into financial decision making and begin to shift financial flows toward those businesses that support resilience.”
Dr Karl Mallon, Director of Science and Technology, XDI (Cross Dependency Initiative), part of The Climate Risk Group, said: “We’re thrilled to be collaborating with the Environmental Change Institute, at the University of Oxford, to expand Climate Arc’s suite of offerings into the physical risk and adaptation space.
Transparency, comparability and accessibility of climate change data is critical to accurately understand the true cost of climate change and trigger the decisions necessary to drive transformation to a zero carbon, high resilience economy.”
Last week, Climate Arc launched TransitionArc from the Climate Innovation Forum 2024 - a new one-stop tool to assess corporate transitions. The tool allows anyone to see where a company lies on the path to achieving key climate goals, including progress on greenhouse gas emissions, capital allocation, governance, policy engagement, and specific climate targets such as ‘net zero by 2030’.
The new physical risk and adaptation initiative involving XDI and the Resilient Planet Finance Lab at the ECI aims to bring similar transparency and comparability by providing company level physical risk metrics covering the frequency of extreme weather disruption, insurance costs, supply chain effects and climate driven impairment to annual revenues.
A preview of this work will be showcased at New York Climate Week, with full integration planned for 2025.
The Resilient Planet Finance Lab is an accelerator research and innovation programme working with governments, financial institutions and regulators to provide analytics and solutions to radically upscale finance for nature, adaptation and wider sustainable development goals. The Finance Lab and its Data Hub are convened by the UN Office for Disaster Risk Reduction and the Insurance Development Forum, with the University of Oxford.
