Physical Climate Risk Assessment for Real Assets
Rapid access to state of the art global climate model infrastructure
Analytics
Klimetrics is provided by Kania Advisors, a quantitative analytics and technology firm focused on real assets. Kania Advisors is formally supporting the TCFD framework and is included in the TCFDs list of supporting companies in the Information Technology category.
Climate risk assessment SaaS designed specifically for real assets
Klimetrics is based on the framework of the Intergovernmental Panel on Climate Change (IPCC) and uses the Representative Concentration Pathway (RCP) scenarios for atmospheric greenhouse gas concentrations from the IPCC Assessment Report. Projections are based on CMIP5/CMIP6 (Coupled Model Intercomparison Project Phase 5/6) global GCMs (General Circulation Models).
Klimetrics provides information aligned with TCFD (Task Force on Climate-Related Financial Disclosures) framework and recommendations. TCFD recommends the use of scenario analysis to assess climate-related risks and opportunities and asks companies to report on the extent to which adequate governance, strategy, risk management, and metrics and targets are in place to address climate issues. A key part of the process is exposure to physical risks resulting from climate change that can be event driven (acute) or longer-term shifts in climate patterns (chronic) . Physical risks may have financial implications for organizations, such as direct damage to assets and indirect impacts from supply chain disruption. Organizations’ financial performance may also be affected by changes in water availability, sourcing, and quality; extreme temperature changes affecting organizations’ premises, operations, supply chain, transport needs, and employee safety.
Klimetrics Reporting
Comprehensive geolocation based and TCFD aligned reporting
① Rapid access to state of the art global climate model infrastructure
Latest CMIP and climate model outputs are incorporated into Klimetrics as they are officially released and all assessments are based on latest official scientific climate models.
② Comprehensive assessment
Klimetrics assessments are based on a comprehensive evaluation of each geolocation to a number of both acute and chronic climate change risks impacting real assets. A range of CMIP models are used in the analysis and results are presented in a consolidated and concise report
③ Key reference reporting data
Klimetrics does not tier assessments. All assessments, from single asset on-demand service to enterprise and institutional level portfolio of global asset geolocations, are reported in the same comprehensive way.
Klimetrics reports provide information aligned with TCFD (Task Force on Climate-Related Financial Disclosures) framework that can enhance and streamline your organization’s reporting, risk assessment and overall ESG process.
④ Seamless location geocoding
You can provide both a postal address of asset locations or geolocation coordinates (latitude and longitude). If an address is provided, Klimetrics will handle geocoding for you, e.g. you can provide either or both of
10 Regent Street, London, SW1Y 4PE, UK
51.50866, -0.13319
Climate Scenarios
Representative Concentration Pathway (RCP) scenarios
RCPs are prescribed pathways for greenhouse gas and aerosol concentrations, together with land use change, that are consistent with a set of broad climate outcomes and are used in IPCC AR5.
In the lead up to the IPCC AR6, the energy modelling community has developed a new set of emissions scenarios driven by different socioeconomic assumptions, These are the “Shared Socioeconomic Pathways” (SSPs). A number of these SSP scenarios have been selected to drive climate models for CMIP6.
Specifically, a set of scenarios were chosen to provide a range of distinct end-of-century climate change outcomes. The IPCC AR5 featured four Representative Concentration Pathways (RCPs) that examined different possible future greenhouse gas emissions. These scenarios – RCP2.6, RCP4.5, RCP6.0, and RCP8.5 – have new versions in CMIP6. These updated scenarios are called SSP1-2.6, SSP2-4.5, SSP4-6.0, and SSP5-8.5, each of which result in similar 2100 radiative forcing levels as their predecessor in AR5.
RCP 2.6
RCP 2.6 is the only IPCC scenario in line with the Paris Agreement’s stated 2°C limit/1.5°C aim. This RCP is consistent with ambitious reduction of GHG emissions, which would peak around 2020, then decline on a linear path and become net negative before 2100.
RCP 4.5
RCP 4.5 is an intermediate-emissions scenario, consistent with a future with relatively ambitious emissions reductions, GHG emissions increasing slightly before starting to decline circa 2040. Despite these actions, RCP 4.5 falls short of the 2°C limit/1.5°C aim agreed on in the Paris Agreement. It is aligned broadly with a reduction of global emissions by 50% by 2080.
RCP 8.5
RCP 8.5 is the high-emissions scenario, consistent with a future with no policy changes to reduce emissions, and characterized by increasing GHG emissions that lead to high atmospheric GHG concentrations. It is aligned broadly with a Current Policies or Business-As-Usual Scenario.
Scientific climate models
CMIP Global scientific model infrastructure for studying climate forcing
Under the World Climate Research Programme the Working Group on Coupled Modelling (WGCM) established the Coupled Model Intercomparison Project (CMIP) as a standard protocol for studying the output of coupled atmosphere-ocean general circulation models.
CMIP provides infrastructure for climate model diagnosis, validation, intercomparison, documentation and data. This framework enables scientists to analyze GCMs in a systematic fashion, a process which serves to facilitate model improvement. Virtually the entire international climate modeling community has participated in this project since its inception. Coupled atmosphere-ocean general circulation models allow the simulated climate to adjust to changes in climate forcing, such as increasing atmospheric carbon dioxide.
CMIP5
CMIP5, the current generation of climate models, provides researchers and decision makers with the most up-to-date view of future climatic changes and is used in the IPCC Fifth Assessment Report (AR5) which provides an overview of the state of knowledge concerning the science of climate change.
CMIP6
CMIP6, is an ongoing update of next generation climate models used in the IPCC Sixth Assessment Report (AR6) with the AR6 Synthesis Report, the last of the AR6 products, scheduled to be released in March 2023.