Australia is experiencing climate-related extreme weather events, including floods, fires, heatwaves, drought, and cyclones. Despite the federal government’s efforts to assess national climate risk, the report is delayed, raising concerns about outdated information. Former Defence chief Chris Barrie warns that the longer the wait, the higher the chance of an out-of-date report that fails to embed the latest science on warming. The delay is particularly concerning given that last year was the first to exceed pre-industrial temperatures by more than 1.5C.

Climate change and disaster researcher Rebecca McNaught notes that communities are taking proactive measures to build resilience, but investment in prevention is falling short. Only 3% of disaster-related funding is spent on preparedness and resilience building, compared to 97% on response and recovery. Experts argue that spending on prevention pays off, with a 10% return on investment anticipated for every dollar spent on disaster risk reduction. The government is under pressure to deliver on the climate risk assessment and adaptation plan, particularly as it bids to co-host the COP31 summit alongside Pacific nations.

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DAS has introduced a new climate dataset package to help organizations manage long-term climate risks in rural Australia. The dataset, accessible via the DAS Rural Platform, provides climate risk assessments at the property level, focusing on variables such as rainfall variability, temperature, and drought index. This data aims to give organizations a more accurate understanding of climate vulnerabilities affecting agricultural assets and regional property portfolios. The dataset is designed to support frontline risk assessments, climate stress testing, and resilience planning for institutions with rural asset exposure, including insurers and banks. DAS’ CEO, Anthony Willmott, emphasizes the importance of accurate and timely data for informed decision-making, and the dataset’s high spatial resolution and geospatial standardization address traditional data limitations. The dataset is targeted at a range of stakeholders, including banks, insurers, and real estate firms, to inform policy pricing, risk mitigation strategies, and investment decisions. By providing reliable, property-specific data, DAS aims to support sustainable investment, risk assessment, and resilience planning in the face of a changing climate.

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The Global Center on Adaptation (GCA) is providing technical assistance to the Comoros government to integrate climate adaptation and resilience into the rehabilitation and expansion of port infrastructure. The project aims to strengthen maritime infrastructure, improve logistics, and enhance regional trade while promoting inclusive socio-economic development and gender inclusion. A stakeholder consultation workshop is being held to present the findings of a climate risk assessment and proposed adaptation options for the ports of Moroni, Boingoma, and Mutsamudu. The workshop will include a discussion of port climate stress tests and the cost-benefit analysis of adaptation options, which range from engineered to nature-based solutions. The objectives of the consultation are to present the findings and gather feedback from stakeholders on the proposed adaptation options.

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Cytora, a digital risk processing platform, has partnered with Vāyuh, a pioneer in AI-powered weather forecasting and climate analytics. The collaboration aims to integrate Vāyuh’s sophisticated climate and weather data models into Cytora’s platform, providing property insurance underwriters with improved risk analytics and more precise risk scores, especially for climate and weather-related risks. The partnership addresses the increasing frequency and severity of natural disasters, such as wildfires and severe storms, which property insurers must better assess and manage. Vāyuh’s technology aggregates data from thousands of sources to create detailed risk perspectives and provides precise forecasts and risk models for various weather-related risks. This integration will enable insurers to streamline workflows, reduce underwriting delays, and enhance profitability by making more informed and precise risk assessments. The partnership aims to enhance market resilience by providing a robust new resource for understanding and mitigating climate and weather-related risks.

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A global advisory and brokerage firm, WTW, has partnered with Cornell University’s Toby Ault, an expert on future drought, to better advise clients on drought-related risks and losses. The collaboration aims to provide actionable and usable information to the insurance and reinsurance industries. Ault’s research focuses on year-to-year and multi-year variations in drought, and the project seeks to develop tools and datasets to predict single and multi-year droughts. The partnership will also identify areas where climate may amplify drought, estimate drought risk more accurately, and create new tools and datasets to predict drought. The research aims to understand how climate models can be used to improve drought risk assessments and to develop products that can be used by the insurance industry to anticipate and price risks. The long-term goal of the project is to catalyze industry-wide transformation in how drought risks are understood, measured, and mitigated. The partnership will also explore the downstream effects of drought and its impact on various sectors, including energy, finance, and public policy.

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A new report from the Australian Strategic Policy Institute (ASPI) warns that Australian policymakers are underestimating the impact of climate change on national security and regional stability in the Indo-Pacific. The report assesses the risks of climate-driven disruptions in Indonesia, one of Australia’s closest neighbors, and suggests that these disruptions could have far-reaching consequences across the region. The report identifies three key pathways to compounding and destabilizing climate disruptions in Indonesia: food insecurity, population displacement, and slowed economic growth. It recommends that Indonesia and its regional partners, including Australia, work together to anticipate and prepare for these disruptions through research, policy, and diplomatic efforts. The report also highlights the need for a deeper public discussion in Australia about cross-border climate risks and the need for further analyses and strategic public conversations on climate issues. It emphasizes the importance of prioritizing national efforts to adapt to climate change and the high costs of inaction.

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The event, moderated by Mine Action Review, brings together the CEOBS, Mines Advisory Group, Norwegian People’s Aid, and the UK Foreign, Commonwealth and Development Office to discuss the new Green Field Tool and research findings on the long-term environmental impact of mine action. The event aims to explore how the Green Field Tool can align mine action programming with the updated IMAS 07.13 on environmental management and climate change. The agenda includes:

* Utilizing an open-source data platform to understand the environmental setting
* Conducting environmental risk assessments and implementing mitigation measures
* Developing environmental reporting indicators
* Presenting findings from post-clearance impact assessments on the environment and land use

The event aims to provide insights and best practices for effective environmental management in mine action programs, ultimately promoting sustainable development and reducing environmental risks.

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The 2025 Spencer-RIMS Risk Management Challenge has set a record with 244 student teams from 61 universities across 16 countries competing to develop climate risk management strategies for Huntington, West Virginia. The competition has seen a significant increase in participation from new institutions and underrepresented groups, with 38 first-time applicants and 9 Minority-Serving Institutions (MSIs) participating. Eight finalist teams have been selected to advance to the final stage at RISKWORLD in Chicago, including teams from DePauw University, University of New South Wales, and University of the Witwatersrand. The challenge requires teams to identify the impacts of climate change on Huntington’s infrastructure, economy, and residents, and develop proactive recommendations to address these vulnerabilities. A panel of six risk management professionals will judge the teams, with the top three performing teams announced on May 5.

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The European Union’s Mission on Adaptation to Climate Change (CLIMAAX) has selected 69 cities and regions in 23 countries, including seven in the Western Balkans, to receive financial and technical support to enhance their climate resilience. The selected cities and regions will conduct multi-risk climate risk assessments and will be eligible for support from the CLIMAAX consortium. The program aims to support the implementation of the EU Adaptation Strategy and the Horizon Europe Mission Adaptation, which focuses on preparing and planning for climate resilience. The selected cities and regions will receive a total of over EUR 12 million in financial support, with the maximum amount ranging from EUR 115,227 to EUR 300,000.

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Diginex Limited, a leading impact technology company, has announced a strategic alliance with Forvis Mazars Global to bring its supply chain due diligence platform, diginexLUMEN, to Forvis Mazars’ client base. The platform uses “cutting-edge technology” to provide insights into supply chain risks related to climate and social issues, enabling businesses to assess and manage these risks. The alliance combines Diginex’s technology with Forvis Mazars’ expertise in ESG advisory, climate risk management, and business strategy to help clients navigate the demands of sustainability and regulatory compliance. DiginexLUMEN is a scalable and affordable SaaS solution that provides unparalleled insight into supply chain risks by leveraging robust governance processes, multilingual worker voice surveys, and algorithm-based risk scoring. The platform is designed to help companies identify, prioritize, and address issues such as forced labor, climate impacts, and other social vulnerabilities across their global operations. The alliance is aimed at helping businesses of all sizes tackle the critical challenges within their supply chains and drive meaningful change.

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The article describes a study that analyzed climate data, population data, green infrastructure data, and survey data to investigate the impact of green infrastructure on residential choices and gentrification in Vienna. The study used a range of data sources, including climate models, population data, and survey results. The study also employed a variety of analytical steps, including the use of regression models and hierarchical logistic regressions.

The study used climate data from the ÖKS15 time series and the MUKLIMO_3 model to analyze the impact of climate change on heat-risk indices in Vienna. The study also used population data from the Statistical Department of the City of Vienna and the Austrian Statistical Office to analyze trends in population growth and social vulnerability.

The study used survey data to investigate the role of green surroundings in residential choice and gentrification. The survey results showed that residents who lived in areas with more green spaces were more likely to move to a new location. The study also found that gentrification was more likely to occur in areas with higher levels of green infrastructure.

Overall, the study used a range of data sources and analytical techniques to investigate the impact of green infrastructure on residential choices and gentrification in Vienna. The study provides insights into the relationship between green infrastructure and gentrification, and highlights the importance of considering these factors in urban planning and policy-making.

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A recent paper by Nest, UBS Asset Management, and the University of Oxford highlights the need for investors to better integrate physical climate risk into their strategies due to the “limited, incomplete and inadequate” corporate disclosures on physical risks. The report notes that climate change is already causing significant economic damage and that carbon emissions and land-use change continue to worsen the physical risk. The study argues that third-party data providers should improve the clarity and consistency of analytical models and data on physical risk events, and that listed companies should provide granular, location-specific information on physical risks, including insurance availability, asset geolocations, and past and potential future risks. The researchers recommend that regulators and capital markets adopt uniform frameworks for integrating climate risk data into financial decision-making, and that investors engage with companies to encourage improved climate risk disclosure and adaptation efforts. The paper warns that without improved data and clearer methodologies, investors risk misallocating capital and failing to protect their portfolios from climate-induced disruptions.

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OroraTech, a company that operates a space-based wildfire detection system using thermal imaging satellites, has partnered with NVIDIA’s Earth-2 digital twin platform to improve climate risk assessment and disaster response. The partnership allows for the integration of OroraTech’s thermal intelligence with Earth-2, enabling researchers and developers to build more accurate models for predicting extreme weather events and natural disasters. The system, which includes 27 satellites, can detect wildfires in near real-time and provide critical fire detection data to emergency responders. The integration with Earth-2 expands the potential applications of this technology in climate resilience efforts, including refining predictions for extreme weather events and improving emergency response strategies. The partnership combines OroraTech’s thermal intelligence with NVIDIA’s edge computing capabilities, enabling real-time data transmission and analysis. This collaboration has the potential to improve climate resilience and disaster response worldwide.

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The Reserve Bank of India (RBI) Governor, Sanjay Malhotra, has proposed creating a shared pool of bankable projects to increase investment and funding for climate-related projects. This idea aims to address the significant funding gap for climate finance, with India needing trillions of dollars by 2050. Experts acknowledge that the proposal has potential, but concerns such as taxonomy, risk management, and project viability need to be addressed.

A shared pool of projects could offer multiple benefits, including providing experienced financial institutions with a collection of financially viable and investment-ready projects. However, experts caution that success depends on agility, taxonomy, and risk management. The RBI has taken steps to address climate-related financial risks, including creating a dataset repository and issuing guidelines on climate-related financial risk disclosure.

Experts also emphasize the need for banks and non-bank finance companies to develop skills and knowledge to assess and finance climate change mitigation projects. The idea of pooling non-return-oriented projects with return-oriented ones raises concerns about cross-subsidization and may only work if both types of projects belong to the same entity. Overall, the RBI’s proposal aims to address the significant funding gap for climate finance, but more work is needed to ensure its success.

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ResiQuant, a company that uses AI and structural engineering expertise to assess and manage catastrophe risks for property insurers, has raised $4 million in seed funding led by LDV Capital and other investors. The funding will accelerate the company’s mission to provide accurate and granular data for property carriers, helping them to make more informed underwriting decisions. ResiQuant’s platform combines AI with site inspection photos, aerial imagery, and publicly available data to identify critical structural weaknesses in buildings, allowing insurers to evaluate risk with greater accuracy. The company’s founders, Dr. Issa and Dr. Galvis, have backgrounds in structural engineering and earthquake research, and have gained valuable experience conducting post-disaster inspections following major events. The funding will be used to expand the company’s platform and grow its engineering and AI units to support carriers in all major US property markets. The founders believe that their approach can help to transform the insurance industry and reduce the impact of natural disasters.

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The Komunidad Climate Action Suite is an all-in-one platform that helps organizations assess, track, and report on their climate risk, sustainability performance, and ESG data. The platform offers three key features: Climate Risk Insights for real-time environmental data and risk assessment, Sustainability and ESG Management for monitoring carbon emissions and social impact, and Reporting and Compliance for automated reporting aligned with international sustainability frameworks. The platform also features Collaboration Tools for engaging stakeholders across the organization and with partners. The suite is highly flexible and adaptable to different regions and industries, with a granularity of 27x27m. By using the Komunidad Climate Action Suite, organizations can transform raw data into actionable insights, making better decisions about climate resilience and sustainability. The platform helps organizations measure, manage, and report on their environmental, social, and governance performance, aligning with sustainability frameworks and goals.

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Federated Farmers has opposed banks’ efforts to reduce their exposure to fossil fuels and set climate targets, claiming it’s driven by non-commercial factors. However, Deloitte’s Will Symons, who met with CFOs, found no evidence that organizations are making decisions based on a “woke agenda.” Symons argues that companies are driven by commercial considerations, such as the need to reduce emissions to meet government targets and respond to shifting market conditions. The bill, proposed by MP Andy Foster, aims to require banks to make lending decisions solely on a commercial basis. However, some experts believe the bill may be unworkable, as climate change poses real commercial risks. DLA Piper’s Daniel Street notes that some US banks may have pulled out of climate accords due to concerns about litigation or reputational risks, not a change in their approach to climate risk. The bill’s passage could increase the cost of borrowing by introducing risk and uncertainty.

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Senator David Pocock, an independent, has described the national security threat of climate change as “frankly terrifying” after being briefed on a secret report from the Office of National Intelligence (ONI). The report, which was delivered to the government in 2023, is only available to the government and crossbenchers, and is not publicly available. The crossbenchers, including Pocock and others, are gagged from speaking publicly about the report’s contents. The article argues that the government’s secrecy around the report is “recklessly negligent” and that the country is “woefully underprepared” for the impacts of climate change. The report is said to link climate change to national security, with experts warning of increases in global unrest, supply chain disruptions, and the potential for climate refugees. The government has been accused of sitting on the report, which has sparked criticism from the Greens and other independents. The article concludes that the country needs to take immediate action to address the threat of climate change, with Senator Pocock calling for regular, independent, and public national climate risk assessments.

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The Chief Investment Officer of the British Business Bank, Leandros Kalisperas, stated that current climate risk assessments on pension investments may not be credible. He acknowledged that current assessments have inaccuracies, but emphasized the need for practical solutions to address climate risk. This comes as climate protesters gathered outside a pension conference, urging delegates to update risk assessment methodologies, citing a report that found climate and nature-driven risks have been underestimated due to flawed economic modeling. An LCP investment partner, John Clements, suggested that instead of divesting from fossil fuel companies, pension schemes should set clear expectations for them and threaten divestment if they fail to meet targets. Many pension funds, including 65%, have committed to net zero, with 22% of those who do not expect to adopt a commitment within five years.

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Extinction Rebellion Scotland, Divest Lothian, Friends of the Earth Scotland, and Protest in Harmony held a protest outside the Pensions and Lifetime Savings Association Investment conference in Edinburgh, calling on pension fund leaders to acknowledge the underestimation of climate risks and take bold action. The protesters, including a performance with singing and a “Big Oil Funk” dance, drew attention to the fact that pension funds invest over £1.3 trillion on behalf of 30 million people, yet many are still investing in fossil fuels despite the growing threat of climate change. A report by the Institute and Faculty of Actuaries and the University of Exeter found that climate risks are being underestimated by pension funds, which could lead to catastrophic consequences, including a 50% contraction of the global economy. The campaigners are calling for pension funds to conduct robust climate risk assessments, divest from fossil fuels, and advocate for policy changes to accelerate the energy transition. They warn that if pension funds continue to invest in fossil fuels, there will be no liveable planet or positive future for pensioners to retire into.

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The government of the Northwest Territories (GNWT) is working to address the challenges posed by climate change, prioritizing adaptation, resilience, and sustainability for future generations. Over the past year, significant progress has been made in Indigenous engagement and partnership on climate adaptation initiatives. This includes developing flood maps for at-risk communities, flood mapping for ten towns, and mapping water level fluctuations. The GNWT has also expanded water monitoring networks, partnered with researchers, and provided water monitoring bulletins.

Adaptation planning is another key area of focus, with the government working with Indigenous governments, community representatives, and federal partners to conduct climate risk assessments and identify vulnerabilities in areas such as housing, infrastructure, and ecosystems. The government is also investing in training programs to build climate adaptation skills in communities, empowering them to respond effectively to climate impacts.

The government’s efforts aim to deliver real benefits, including enhanced safety and preparedness through updated flood maps and expanded water monitoring. By integrating Indigenous knowledge, the GNWT is working towards an inclusive, collaborative approach that reflects northern values. The government is committed to securing a sustainable future for the Northwest Territories.

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The year 2024 was the warmest on record, exceeding 1.5°C above pre-industrial levels. This warming may lead to more intense hurricanes, as seen in the recent Hurricane Beryl, which was fueled by record-high sea surface temperatures. Traditional natural catastrophe (nat cat) models are based on historical data, but climate change is altering the world, making these models outdated. To address this, reask, a nat cat modeller and data provider, has developed a methodology that combines machine learning with advanced stochastic simulations to provide a climate-informed, forward-looking risk assessment. This approach can help quantify uncertainty in hurricane formation and risk. The model can simulate millions of hurricanes and provides a robust database for training machine learning algorithms. By forcing the model with different climates, the industry can assess how climate change affects the entire risk curve, including the tail. This methodology can be adapted for other climate-driven perils, such as wildfires and floods, to facilitate better risk management, pricing, and assessment. By anticipating non-linear shifts in risk distributions, the industry can avoid future surprises and be better prepared for a rapidly changing climate.

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London-based Ocean Ledger, a geospatial analytics startup, has raised €900,000 in pre-seed funding led by Ananda Impact Ventures and Silverstrand Capital to scale its solutions for predicting coastal risks and identifying interventions for engineering firms, municipalities, environmental services, and insurance companies. The company offers high-resolution geospatial analytics for coastal risk assessment and environmental impact analysis, detect anomalies in shoreline movement, underwater topography, and natural defenses to enable proactive risk management and continuous monitoring. With the funding, Ocean Ledger aims to improve the accuracy and usability of coastal risk assessments, which are crucial for evaluating and managing the risks associated with coastal erosion and flooding. The company’s solutions can help reduce the estimated €3.7 trillion in climate-induced infrastructure losses over the next 15 years. It has already collaborated with satellite data provider Planet Labs PBC and is exploring partnerships with marine drone and sensor companies to further enhance its capabilities.

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Aisix Solutions Inc. has partnered with Stessa Real Estate to integrate its Climate Genius platform into real estate investment assessments, providing property investors with climate risk data. This integration aims to enhance transparency in property investment and help investors make informed decisions. Aisix Solutions’ CEO, Mihalis Belantis, views real estate as a highly vulnerable asset class to climate-related financial risks.

The company is also expanding its climate risk insights across multiple industries, including finance, insurance, and government, to address rising regulatory demands. Its Climate Genius platform leverages advanced modeling and geospatial data to provide property-specific climate risk assessments. The company has also partnered with Triomphe Holdings Ltd.’s Capital Analytica for investor relations and communications.

The financial sector is adapting to rising climate risks, with institutions prioritizing climate risk assessment and integration into financial models. Regulatory frameworks, such as IFRS S2 and OSFI B-15, require financial institutions to assess and report on climate-related risks. Aisix Solutions aims to facilitate this process through data-driven climate insights, generating revenue through subscription-based access to climate data, analytics, and premium features.

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Oxford Economics has identified a “hidden” risk in financial analysis related to climate change, which is often overlooked. This risk arises from the indirect impact of climate change on global supply chains, rather than the direct impact on individual companies. This “mesoeconomy” is the blind spot in climate risk analysis for the finance sector.

Oxford Economics has developed a new approach to measure these indirect climate risks, which assesses the vulnerability of supply chains to climate risks. They tested this approach by analyzing financial market data over a 10-year period and found that portfolios that incorporated this indirect climate risk performed better than those that did not.

The study shows that there is a correlation between indirect climate risk and lower total returns to equity, and that considering this risk can lead to improved portfolio performance. To access the full whitepaper, which includes the detailed methodology and findings, readers can complete a form. The report highlights the importance of considering indirect climate risk in financial analysis and provides a new approach to do so.

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The Insurance Bureau of Canada reports that combined damages from summer 2024 extreme-weather events reached over $7 billion, with flash floods in Toronto accounting for a significant portion of the losses. To address this growing concern, the construction of St. Paul’s Hospital in Vancouver’s False Creek Flats neighborhood is incorporating climate-resilient design features. The hospital’s entrances will be designed to withstand flood levels up to 2100, and it will have backup systems for power and water, as well as permeable ground and a tree canopy to reduce the heat-island effect. This design is a result of a climate-risk assessment by PCL Construction and environmental consultants at Stantec, who identified coastal flooding, intense rainfall, heat domes, and poor air quality as the most likely risks. This initiative, according to Bruce Norman, project director for PCL Construction, demonstrates a change in how buildings are designed, with a focus on forward-thinking and resilience. The Canadian Home Builders’ Association is also working to incorporate climate adaptation and resilience into new builds and rebuilds, leveraging advanced climate risk modeling and alternative building materials to make homes more resilient without increasing costs.

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As of September 30, 2024, extreme weather events have affected 3.2 million hectares of crop area across 35 states in India, with India’s National Innovations in Climate Resilient Agriculture (NICRA) assessment finding that 255 of the past 274 days have been impacted by extreme weather. In Meghalaya, a state in northeastern India, every district is categorized as either “very high” or “high” risk, with Ri-Bhoi district specifically identified as facing “high” climate risk due to rising minimum temperatures, increased drought, and erratic rainfall. The assessment found that rising minimum temperatures are a critical risk factor, particularly in Meghalaya where a slight increase can disrupt crop cycles and diminish yields. Without immediate intervention, farmers in Meghalaya may face worsening crop losses and food insecurity. To mitigate the impact, efforts are needed to improve irrigation infrastructure, introduce climate-resilient farming techniques, expand crop insurance coverage, and strengthen early warning systems and sustainable agricultural practices.

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The IPCC Climate Change 2022 report highlights the urgent need for mitigating climate change. This report discusses the role of central banks and financial institutions in addressing climate change. Several studies, including those by Bolton, Despres, and Svartzman, emphasize the importance of green finance in achieving a sustainable future. They argue that central banks can play a crucial role in promoting sustainable finance through monetary policy, supervision, and climate stress testing.

Other studies, such as those by Gabor and D’Orizio, explore the relationship between central banks and financial stability in the context of climate change. They suggest that central banks can use their mandates and instruments to promote green finance and mitigate climate risk.

The paper by Battiston et al. highlights the need for a systemic approach to addressing climate-related financial risks, while that of Oman et al. discusses the importance of policy coordination between central banks and financial supervisors.

Overall, the report emphasizes the need for a coordinated effort by central banks, financial institutions, and policymakers to address the challenges posed by climate change. It provides insights into the role of green finance, financial regulation, and policy coordination in mitigating climate change.

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Bloomberg has launched MARS Climate, a new tool within its Multi-Asset Risk Management (MARS) suite, to help portfolio managers and investors assess and manage the financial risks associated with climate change. The tool is designed to aid in evaluating the impact of climate-related risks on portfolios and helping firms comply with regulatory reporting requirements. The launch of MARS Climate comes as regulators and central banks worldwide are increasingly asking financial institutions to assess their exposure to climate risks. The tool is backed by BloombergNEF’s Transition Risk Assessment Company (TRACT), which evaluates the financial impact of climate-related risks on company revenues and opportunities. Bloomberg’s Global Head of Risk Product, Dharrini Bala Gadiyaram, notes that portfolio managers are seeking to conduct climate risk analysis alongside financial risk assessments to manage risk and regulatory reporting. With MARS Climate, financial professionals can assess portfolio vulnerabilities and opportunities related to climate change, helping them make informed investment decisions and comply with regulatory requirements.

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MSCI and Swiss Re Reinsurance Solutions are partnering to enhance the financial sector’s approach to physical climate risk management. The collaboration combines MSCI’s GeoSpatial Asset Intelligence with Swiss Re’s proprietary natural catastrophe and climate risk data. The initiative aims to provide financial institutions with detailed, asset-level physical risk insights, enabling them to develop strategies to assess and mitigate risks across individual assets, companies, and global portfolios.

Richard Mattison, Global Head of ESG and Climate at MSCI, sees this collaboration as a significant advancement in physical risk insights, empowering clients to navigate the evolving risk landscape with confidence. Ali Shahkarami, Global Head of P&C Solutions at Swiss Re, highlights the broader impact, stating that the cooperation will benefit financial institutions globally and align with Swiss Re’s vision of making the world more resilient.

The partnership is seen as a critical advancement in building robust, climate-resilient portfolios for C-suite executives, investors, and financial leaders. By leveraging Swiss Re’s CatNet data and other natural catastrophe risk insights, the financial sector can better assess and manage physical climate risks, ultimately leading to more resilient investment strategies.

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Bloomberg has launched a new module, MARS Climate, as part of its Multi-Asset Risk Management (MARS) suite. This new feature helps portfolio and risk managers analyze the financial impacts of climate change on investment portfolios, enabling them to better manage climate-related risks and aligned with regulatory requirements. The MARS Climate module uses BloombergNEF’s Transition Risk Assessment Company Tool (TRACT) to evaluate portfolios against multiple climate scenarios, providing transparent financial impact reports that categorize risks into physical, acute, chronic, and transition risks. This tool is accessible through the Bloomberg Terminal, allowing for easy integration with other sustainable finance tools. The launch of MARS Climate responds to regulatory pressure on financial firms to evaluate climate-related risks and meet compliance requirements, while also identifying new opportunities in the transition to a greener economy. The module is designed to support firms in their efforts to manage climate risks and improve their risk reporting, ultimately helping them stay ahead of the curve in the rapidly changing financial landscape.

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Bloomberg has launched MARS Climate, a new solution that enables financial firms to quantify and manage climate-related risks and opportunities across their portfolios. The solution is part of the Multi-Asset Risk Management (MARS) suite and aims to help investors address regulatory demands to assess their exposure to climate risks. Climate change is having a significant impact on the economy, with natural disasters causing $280 billion in damages globally in 2023, according to Swiss Re. The MARS Climate module uses integrated assessment models and the Transition Risk Assessment Company Tool (TRACT) to analyze climate scenarios and project company revenue risk and opportunities. The solution provides a report assessing the financial impact of climate-related risk down to the security level, split out by physical acute, physical chronic, and transition risk. Bloomberg’s Global Head of Risk Product, Dharrini Bala Gadiyaram, said that the new solution will enable users to assess portfolio vulnerabilities and opportunities related to climate change.

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AISIX Solutions, a leader in climate risk assessment and modeling, will present at the Centurion One Capital 8th Annual Growth Conference from March 3rd to March 6th, 2025, at the Four Seasons Hotel in Toronto’s Yorkville neighborhood. CEO Mihalis Belantis will deliver a presentation on March 6th at 10:45 AM and participate in a panel discussion at 1:45 PM.

AISIX Solutions recently launched Wildfire 3.0, a latest wildfire prediction and risk management tool that incorporates advanced AI, machine learning, and probabilistic modeling algorithms to assess wildfire probability, intensity, and expected losses under various climate conditions.

The conference will feature presentations, panel discussions, and individual investor meetings from 8:00 AM to 5:00 PM EDT. The event is expected to provide an excellent opportunity for stakeholders to engage with Mihalis Belantis and explore the company’s innovative climate risk solutions.

AISIX Solutions is committed to empowering organizations to protect their property, assets, and infrastructure from climate-related risks through its cutting-edge data analytics and risk assessment solutions. The company is dedicated to fostering resilience and sustainability in the face of climate change.

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The topic of climate change and its impacts is a pressing concern globally. This analysis delves into the effects of climate change on various industries through real-world case studies. The discussion begins by exploring the physical risks associated with climate change, including floods, heatwaves, droughts, and other extreme weather events. It also examines the transition risks that come with policy shifts, carbon pricing, and regulatory changes. The next step is to integrate sustainability principles into daily operations, such as adopting a circular economy, improving energy efficiency, and implementing green supply chains. Additionally, the analysis assesses vulnerabilities in critical infrastructure and assets, with the goal of building resilience and minimizing the impact of climate-related disasters. By understanding these risks and challenges, industries can better prepare for and mitigate the effects of climate change, ultimately ensuring business continuity and long-term sustainability.

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A recent report by the Sierra Club assessed the proxy voting guidelines and practices of 32 US state pensions for their effectiveness in addressing climate-related financial risks. The report found that only one pension fund, the Massachusetts Pension Reserves Investment Management, received an A grade for its guidelines and voting, while two-thirds of the pensions received D or F grades. The report praised the New York State Common Retirement Fund for its proactive approach to risk mitigation, while seven other funds received B grades for their solid performance on climate-related votes. The report also highlighted that eight pensions had transparent voting records, with a minority having incomplete or non-existent records. Overall, the report suggests that many state pensions are still failing to effectively address climate-related financial risks in their proxy voting practices.

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India’s Climate Risk Index (CRI) rank has improved from 7th worst to 49th in 2022, although it remains among the top 10 most affected countries historically. A new report by Germanwatch analyzed extreme weather events in 1993-2022, finding that India reported 80,000 fatalities and $180 billion in economic losses due to 400 events. Globally, over 765,000 people lost their lives and $4.2 trillion in damages during the same period. Storms, heat waves, and floods caused the most fatalities. The report highlights the increasing climate risks globally and suggests that high-income countries must increase their climate risk management. The report criticizes the failure of rich nations to provide adequate finance for climate actions in developing countries, citing the lack of an ambitious New Collective Quantified Goal (NCQG) on Climate Finance at the 2022 UN climate conference. The report emphasizes the need for increased financial support to developing countries to address climate impacts and adaptation financing gaps. Experts warn that climate change is becoming a global security risk and that bold multilateral actions are necessary to address it.

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Spain has been ranked as one of the 10 countries most affected by climate change, according to a report by Germanwatch. Between 1993 and 2022, extreme weather events linked to climate change caused 27,000 deaths and €25 billion in economic losses. The country has experienced severe heat waves, floods, and droughts, with the Mediterranean region being particularly vulnerable to these extreme conditions. The report highlights the need for Spain to improve its adaptation to climate risks, as it has a significant margin for improvement. Experts warn that the country must take urgent action to strengthen disaster preparedness, enhance climate resilience, and accelerate emission reductions. This includes investing in sustainable infrastructure, improving water resource management, and implementing stronger heat adaptation strategies. The report also emphasizes the urgent need for multilateral actions to address climate risks and secure funding for adaptation measures, particularly in vulnerable regions. The global climate crisis is a $4.2 trillion challenge, with extreme weather events resulting in over 765,000 deaths and significant economic losses worldwide.

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The 18th annual emerging risks survey by the Casualty Actuarial Society and the Society of Actuaries has identified the top emerging risks as climate change and geopolitical instability, including civil wars. The survey of 201 risk managers from around the world also highlighted the growing concern about disruptive technology, particularly artificial intelligence, cyber security, and manipulation. The survey results show a shift away from concerns about failed and failing states, which were more prominent in earlier surveys. The top emerging risks reflect recent events, including conflicts in Ukraine and the Middle East, hurricanes, and changes in inflation and interest rates. The survey aims to provide a long-term view of risk and to mitigate recency bias, with a mid-year flash survey planned for May 2025. The results highlight the need for risk managers to consider these emerging risks and take a proactive approach to managing them.

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In today’s climate, credible research and data are essential for making informed business decisions. WTW, a company with a track record of 20+ years of working with climate scientists, believes that a transdisciplinary approach is key to making climate data accurate, accessible, and actionable. Collaboration between the insurance industry and academia is also crucial for translating complex data into practical solutions for adapting to climate change. To identify credible research, it’s essential to evaluate the source, accessibility, peer review, and relevance of the data. Additionally, research should be transparent, and the funding sources should be disclosed. The article highlights several areas of research that should be approached with caution, such as research that lacks transparency, questionable accuracy, and uncertain funding sources. The article also emphasizes the importance of integrating climate and catastrophe models, seasonal predictions, and transition and liability risks into risk assessments and planning frameworks.

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The use of artificial intelligence (AI) and geospatial data is transforming the way we assess climate disaster risks in Cambodia, particularly floods and droughts. These advances provide critical insights that enable effective disaster preparedness and resilience-building. These insights are crucial for informed planning, budgeting, and targeting of disaster response efforts. By leveraging AI and geospatial data, it is possible to generate granular and location-specific information on disaster risks, which can be used to strengthen disaster risk reduction frameworks such as Implementing Frameworks of Disaster Risk Reduction (DRR), Early Warning for All (EW4All), Anticipatory Actions (AA), and Shock-Responsive Social Protection (SRSP). This enables the identification of high-risk areas and populations, allowing for targeted interventions and emergency response planning. By harnessing the potential of AI and geospatial data, Cambodia can enhance its capacity to prepare for and respond to natural disasters, ultimately reducing the impact of floods and droughts on communities and businesses.

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Malawi’s economy is heavily affected by agriculture, which is highly vulnerable to climate-related risks. A recent report highlights the urgent need for the country to address climate change, as extreme weather events have led to significant economic damage and widespread distress. The banking sector is particularly vulnerable to climate-related risks, with 71% of banks recognizing the importance of climate risk management but only 14% having integrated these risks into their governance frameworks. The insurance sector is also underdeveloped and underutilized, leaving rural communities without adequate financial protection. The report proposes a comprehensive financial resilience strategy, including regulatory reforms, capacity-building initiatives, and green tax incentives. It emphasizes the importance of climate risk management and climate-resilient infrastructure to ensure long-term financial stability. If climate risks are not proactively managed, Malawi could face a financial crisis marked by declining agricultural productivity, increased loan defaults, and systemic economic instability. The international community has a crucial role to play in supporting Malawi’s adaptation efforts, and the stakes are high for the country’s economic future.

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The American Society for Testing and Materials (ASTM) has published a new standard for property resilience assessments (PRAs), which aims to help parties identify and evaluate the potential risks posed by natural hazards, including those made more extreme by climate change. The standard, known as ASTM E 3429-24, provides a generalized and systematic approach for conducting PRAs, which are intended to be used in real estate transactions, investment, and lending decisions, as well as in property management and climate risk analysis. The PRA process involves three stages: hazard identification, risk evaluation, and resilience measures. The standard is intended to complement existing property decision-making processes, including the Phase I Environmental Site Assessment (ESA) and the Property Condition Assessment (PCA). While PRAs may be more expensive and complicated than traditional ESAs, they can be an important tool for identifying and mitigating climate-related risks. However, there are concerns about the potential challenges and limitations of PRAs, including their cost, timing, and the difficulties of dealing with subjective or future-oriented analysis.

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The ASTM International, a standards-setting organization, has released a new standard guide, Property Resilience Assessment (PRA), to help assess a property’s degree of resilience to physical climate hazards such as storms, wildfires, and floods. The PRA is designed to provide a consistent means of determining a property’s risk level and what measures can be taken to improve its resilience. The standard is intended to be conducted alongside other assessments, such as property condition assessments and environmental site assessments, and is expected to become widely adopted in the real estate industry.

The PRA guides property owners, developers, investors, lenders, and design teams through three stages: identifying hazards, conducting an on-site evaluation, and determining conceptual resilience measures. The standard aims to create a common language and framework for evaluating property resilience, which can enhance due diligence, investment decision-making, and risk management.

The PRA is expected to have a broad impact, from raising awareness of physical risk and resilience to standardizing definitions and creating a common language around exposure, vulnerability, and risk. It may also lead to cost savings from insurance premiums and insurer availability, and encourage lenders to require borrowers to conduct PRAs as part of their due diligence.

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As the planet continues to warm, the effects of climate change on human health are becoming increasingly concerning. The past two years, 2023 and 2024, have seen record-breaking temperatures, with the planet breaching 1.5°C of warming above pre-industrial levels. While some health impacts are easy to track, such as deaths from heat stroke, others are more insidious and long-term. Prolonged exposure to heatwaves and droughts can lead to kidney disease, poor sleep quality, and altered gene expression, which can have a cumulative effect on health. Research suggests that fetuses exposed to environmental stressors in the womb are more likely to develop high blood pressure as adults, decades later. The development of a warming global climate means that the health burden may be greater than current models can quantify, making it essential for researchers and public-health officials to re-evaluate their assessments. The human body’s limits in response to extreme heat are not fully understood, and more research is needed to address the unforeseen consequences of climate change.

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A leading climate scientist, Dann Mitchell, has emphasized the urgent need to understand and quantify the numerous adverse health effects of climate change, which will have a significant impact on current and future generations. Worsening climate change is linked to an array of health issues, including heat-related fatalities, hospital admissions, and long-term health consequences such as kidney disease, sleep disturbances, and compromised immune systems. Even subtle changes, like poor quality sleep, can have far-reaching effects on mental and physical health. Climate change can also alter fetal development and gene expression, leading to increased risk of chronic diseases in adulthood. The full extent of these health risks is difficult to quantify due to incomplete data and the varied ways in which people experience environmental stressors. Mitchell urges researchers and public health officials to explore four key areas: the timescales of health impacts, environmental health risks, socio-economic consequences, and incorporating findings into global climate risk assessments. By combining disparate data and insights, the health burden of climate change can be better understood, and effective strategies can be developed to mitigate its effects.

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The Bhutan Crisis Preparedness Gap Analysis, conducted by international organizations, assesses the country’s abilities to address crises. Bhutan is vulnerable to natural disasters due to its mountainous terrain, dependence on agriculture, and limited resources. The report identifies gaps in preparedness and provides recommendations for strengthening the country’s resilience. Gaps include a lack of financial readiness, inadequate early warning systems, and insufficient infrastructure resilience. The report also highlights social vulnerabilities, including rural isolation, aging population, and fragile food security.

The report recommends a comprehensive approach to disaster preparedness, including legislative reforms, risk assessment and monitoring, and financial preparedness. This includes the creation of a Disaster Risk Financing and Insurance Strategy and investments in emergency response systems, public awareness campaigns, and community-based preparedness initiatives. The report also emphasizes the need to strengthen social protection, infrastructure, and agricultural practices to reduce the country’s vulnerability.

Overall, the Bhutan Crisis Preparedness Gap Analysis provides a roadmap for building a resilient nation, highlighting the importance of cross-sector collaboration and international support. The report’s recommendations are practical guidelines for safeguarding lives, livelihoods, and development gains, and can help Bhutan lead by example in building a resilient country.

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A new report by the Golden Gate Biosphere Network warns that coastal redwood forests, including Muir Woods, are at risk of water stress, mortality, and poor health due to climate change. The report assesses the vulnerability of 21 key species and habitats in the region, including Muir Woods, San Mateo to Mendocino counties, and finds that many are facing significant threats. The report recommends reintroducing prescribed burns in Muir Woods to increase forest resilience to drought, wildfire, and disease. Other habitats at high risk include freshwater and tidal marshes, riparian forests, and woodlands throughout Marin County, as well as coho salmon and steelhead trout populations. The report aims to prioritize restoration efforts and inform parkland managers on how to combat and adapt to climate change. The findings are based on climate change projections, which show a hotter future with changing precipitation patterns, leading to more frequent and intense droughts and floods. The report is available for review at goldengatebiosphere.org/ccva.

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The recent Los Angeles (LA) fires are estimated to be the most expensive disaster in US history, with damages of $250-275 billion, or 24-26% of Australia’s annual GDP. While climate change is not the sole cause of the fires, it is a significant factor in their intensity and unexpectedness. LA, like many other cities, is vulnerable to climate-amplified disasters that can surprise authorities even in areas that know fire risks. The article suggests that insufficient preparation, inadequate staffing, and lack of investment in climate-resilient infrastructure contributed to the scale of the disaster. Urban development, such as building in high-risk areas, has also played a role. The article emphasizes the need for more investment in climate adaptation, including building codes, fire-resilient design, and infrastructure preparedness. It also highlights the need for better communication and data-driven decision-making, as well as preparedness planning to mitigate the impact of future disasters. Ultimately, the article concludes that these events are predictable and preventable, but only if we take climate risks seriously and invest in proactive measures to address them.

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Real estate owners and investors are increasingly focused on climate considerations due to the rising frequency and severity of weather-related events. At Leo Impact Capital, a JBG SMITH subsidiary, they approach sustainability and resilience by integrating climate risk assessments into their investment and asset management processes. They analyze historical climate data, local infrastructure resilience, and regulatory frameworks to understand potential risks and opportunities. Energy audits are a critical component of their approach, helping them identify areas for improving energy efficiency and reducing costs. They have identified over $13 million in sustainability investments that will reduce energy consumption by 60% and result in total annual savings of over $500,000. By leveraging grant funding and private financing options, they have found that incorporating a sustainability lens into their work unlocks new opportunities for growth and innovation, reducing portfolio risks and creating win-win outcomes for residents and investors. By adopting a climate-conscious approach, they aim to maintain affordability, enhance economic mobility, and deliver solid financial returns.

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The XDI Climate Risk Hub is a platform that enables real-time climate risk assessments for assets worldwide, using a single auditable methodology. The platform is designed to support financial institutions, companies, and governments in due diligence, operational risk, and climate adaptation planning. The technology was initially piloted by the Hong Kong Monetary Authority (HKMA) and has now been expanded to serve all sectors. The XDI Climate Risk Hub offers features such as climate risk ratings, financial risk metrics, analysis up to 2100, and high-resolution spatial data. These features help institutions assess counterparty risk, plan climate adaptation strategies, and improve operational resilience. The platform’s capabilities include screening single assets or large portfolios, performing in-depth due diligence, and identifying high-risk subsets of assets. XDI plans to expand its adaptation-focused tools to further support banks, companies, and governments in building climate-resilient futures.

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Climate change poses a significant threat to US commercial real estate markets, and various software tools are used to analyze climate risks. However, these tools can be effective for assessing baseline physical risks but often fall short when evaluating material physical risks from climate change. A report by MetLife Investment Management, “Pitfalls & Mitigants of Climate Assessment Software,” explores various risk assessments to understand how to mitigate these shortfalls.

The report identifies two categories of physical climate risk hazards: acute and chronic. To assess risks in the real estate industry, different models and data sources are needed. Historically, property insurers have assessed early physical risks by analyzing catastrophic risk from extreme weather events, using event-based modeling and historical data such as flood maps and weather patterns. The report highlights the need for more sophisticated models and data sources to accurately assess the impact of climate change on commercial real estate markets. By better understanding and mitigating climate risks, investors and property owners can make more informed decisions and reduce the potential losses associated with climate change.

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The article discusses the importance of going beyond traditional approaches to climate risk management and insurance. It highlights the need to consider alternative risk transfer options, such as captives and parametric solutions, which can help organizations cope with the growing volatility of climate risks. These options can provide a cash injection to help organizations recover from climate-related disasters.

The article also emphasizes the importance of considering the broader context of climate risk management, including supply chain partners and local authorities. By understanding how these stakeholders would respond in the face of a climate-related event, organizations can develop more robust business continuity plans and reduce the impact of catastrophic events.

Finally, the article argues that climate disclosure metrics, such as greenhouse gas emissions, are not sufficient to understand and manage climate risk. Instead, organizations should take a holistic approach that considers environmental, economic, and social systems to develop more resilient business models and identify new opportunities. By going beyond traditional approaches, organizations can create a more resilient and sustainable future.

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Two students from the Indian Institute of Management, Lucknow (IIM-L), Shankar N and Amruth Chinnappa CT, won national awards at the 2024 Climate Corps Annual Summit for their summer internship projects under the EDF Climate Corps Fellowship, India cohort. Amruth won the ‘Innovation Award’ for developing a custom climate risk and impact assessment tool for Larsen & Toubro, while Shankar earned the ‘Business Case Award’ for creating a practical emission reduction strategy for Mahindra & Mahindra. Amruth’s tool assesses climate risks and impact across company project sites, while Shankar’s plan focused on reducing Scope 1 and 2 emissions. Both students’ work was praised for its practicality, scalability, and potential to drive significant emissions reductions.

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The Ceres’ 2024 scorecard evaluates the progress of US financial regulators in addressing climate-related risks. The assessment highlights that while there has been significant progress, more work remains to be done. Regulators have made progress in producing research, data, and integrating climate risks into their oversight of regulated entities. For example, the Federal Reserve System, Office of the Comptroller of the Currency, and Federal Deposit Insurance Corporation issued guidance on climate-related financial risk management. The Securities and Exchange Commission (SEC) also finalized a climate disclosure rule requiring public listed companies to report climate-related financial risks. However, despite these efforts, Republican politicians continue to criticize these initiatives, with the House Judiciary Committee accusing Climate Action 100+ of colluding to force out ExxonMobil directors and colliding with federal law. The committee has threatened to introduce legislative reforms to address what it sees as anti-competitive behavior. Despite these challenges, experts agree that there has been a significant evolution in how regulators approach climate-related financial risks, but more work is needed to address the issue.

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Aon has expanded its Climate Risk Monitor solution by collaborating with flood expert Fathom to enhance its flood risk capability. The partnership provides high-resolution data for flood risk assessment, allowing clients to analyze flash, river, and coastal flooding at a 10-square-meter resolution in select regions. The data helps clients understand the impact of climate-related perils, including rising sea levels, on individual assets, portfolios, and locations. Climate Risk Monitor also assesses the likelihood of other climate-related hazards, such as droughts and wildfires, under different climate change scenarios. The solution provides diagnostic reports and visualizations to help clients understand the insurability of flood perils and inform risk management decisions. The collaboration with Fathom builds on Aon’s recent certification of the Florida Flood v3.0 model and integration of flood risk data into its ELEMENTS 18 catastrophe modelling suite. The Climate Risk Monitor is designed to help clients assess and manage climate risk, support risk mitigation and transfer strategies, and demonstrate climate awareness to stakeholders.

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