Publications Development finance

Getting started on Physical climate risk analysis in finance

12 December 2018 - Climate Report - By : Romain HUBERT / Julie EVAIN / Morgane NICOL

Financial institutions are already exposed to the potential physical impacts of climate change also called “physical climate risks” in finance. These require immediate attention from financial institutions, in order to understand how well prepared are the economic actors that they finance.


Yet financial institutions still lack tailored information to analyze their exposure to these risks, as revealed by the information they publicly disclose. They currently start to explore such analysis based on the methodologies developed by third-party service providers.


What is the state of play of existing approaches to analyze physical climate risks at financial institutions? What do they offer? What are their boundaries? What is the way forward with them?


In the frame of the ClimINVEST European project, I4CE reviews existing approaches developed by eight service providers. The report provides detailed analysis of these approaches in a common framework, and discusses crucial aspects such as the outputs; the perimeter of analysis; the data sources and their granularity; the strategies to analyze impacts; the use of forward-looking analysis.


The review is based on the information that the service providers kindly shared with the authors, and that they accepted to disclose in the Annex 3 of the report.


The ClimINVEST consortium produced this report as a first step to identify information gaps on physical climate risks for financial institutions. The consortium then incorporated key findings of this report into a synthesis report of investor needs for information in France, the Netherlands and Norway.


As a next step, the consortium partners and different groups of financial institutions are now co-designing and co-developing indicators on physical climate risks to start bridging these information gaps.


Please see the ClimINVEST project’s principal website for more information and updates on the project.


Getting started on Physical climate risk analysis in finance Download
See appendices
  • ClimINVEST – EXECUTIVE SUMMARY – Getting started on Physical climate risk analysis in finance Download
I4CE Contacts
Research Fellow – Climate risks, Adaptation and financial institutions Email
Research Fellow – Financial regulation, Prudential transition plans Email
Morgane NICOL
Morgane NICOL
Director program – Local authorities, Adaptation, Public finance Email
To learn more
  • 09/08/2023 Foreword of the week
    Development finance: From resolutions to actionable solutions

    The reform for a new global financing pact – as it was ambitiously designated by the French President Emmanuel Macron – allows little time for rest, combining several agendas that collectively seek to rethink how the Global South can finance its low-emission development pathways, with support from the Global North. The sequence of international events that starts this week with the Finance in common Summit, the African climate summit, G20 and followed by World Bank Group and International Monetary Fund’s Annual Meetings will be key to see if the multiple resolutions to reshape development finance outlined during the first semester of 2023 were merely wishful thinking or if they can be seen as the first bricks of a new international financial architecture. 

  • 08/31/2023 Blog post
    Synergising Sustainable Development Goals Finance with Climate Finance 

    Sustainable development and climate change are two pressing and interconnected issues that countries have committed to address at the international level. The 2030 Agenda for Sustainable Development, with the 17 Sustainable Development Goals (SDGs) including climate action, at its core was adopted by the United Nations (UN) in 2015. The same year, the Paris Agreement was adopted by Parties of the UN Framework Convention on Climate Change. Both instruments have clear global and national targets in the medium- and long-term that are still far from being met.

  • 06/15/2023 Blog post Foreword of the week
    Paris Summit: more and better financing is needed for the transition

    On 22nd and 23rd of June, the Summit for a new Global Financing Pact, initiated by Emmanuel Macron and Mia Mottley, Prime Minister of Barbados, will take place in Paris. This Summit will be a success for climate if it enables us to spend more on the climate transition, to spend better, and if it influences the ongoing reform of international development financing.

See all publications
Press contact Amélie FRITZ Head of Communication and press relations Email
Subscribe to our mailing list :
I register !
Subscribe to our newsletter
Once a week, receive all the information on climate economics
I register !