AlphaGeo for Regulatory Disclosures and Compliance
Overview
Climate data and reporting tools are becoming essential as disclosure requirements become mainstream worldwide. This article explains how AlphaGeo’s climate risk, resilience, and financial impact analytics support regulatory compliance across multiple jurisdictions, covering:
Task Force on Climate-Related Financial Disclosures (TCFD)
Describe climate-related risks and opportunities the organization has identified over the short, medium, and long-term.
Our Climate Risk & Resilience Index provides risk scores and adaptation opportunities under multiple scenarios and time periods from the present to 2100.
Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy and financial planning.
Our Climate Financial Impact Metrics calculate the impact of climate risks on cashflow via CapEx costs (e.g. insurance and utilities) and OpEx costs (e.g. retrofits and maintenance). Our climate-adjusted discount multiplier can be integrated into NPV modelling and exit valuation forecasting.
Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2C or lower scenario.
Our Resilience-Adjusted Risk Scores and Adaptation Layer data (both part of our Risk & Resilience Index) measure any location’s resilience to physical climate risk under multiple scenarios and provide suggested remediation measures to enhance organizational resilience.
Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets.
Our Climate Risk & Resilience Index scores are standardised globally and our software displays benchmarks for the global, national, provincial and city level, allowing for clear target setting.
International Sustainability Standards Board (ISSB) IFRS S2 Climate Disclosures
Identify the climate-related risks and opportunities that could reasonably be expected to affect the entity’s prospects.
Our Climate Risk & Resilience Index provides a comprehensive assessment of the risks, exposure and vulnerability of any location under multiple timescales and scenarios, including detailed data on the adaptation capacity of each location to offset the key climate physical risks.
Assess the current and anticipated effects of those climate-related risks and opportunities on the entity’s financial position.
Our Climate Financial Impact Metrics calculate the impact of climate risks on cashflow via CapEx costs (e.g. insurance and utilities) and OpEx costs (e.g. retrofits and maintenance). Our climate-adjusted discount mutiplier can be integrated into NPV modeling and exit valuation forecasting.
Assess the climate resilience of the entity’s strategy and its business model.
Our Climate Risk & Resilience Index provides a comprehensive assessment of the risks, exposure and vulnerability of any location under multiple timescales and scenarios, including detailed data on the adaptation capacity of each location to offset the key climate physical risks.
Our Adaptation Layer data (part of our Risk & Resilience Index) measures the adaptation capacity of any location to climate hazards and suggests remediation measures to reduce vulnerability.
Measure the amount and percentage of assets or business activities vulnerable to climate-related physical risks.
Our Explorer SaaS platform can cluster locations according to their risk rating categories (high / med / low) as well as by asset value or percentage of a fund or portfolio.
Assess the amount and percentage of assets or business activities aligned with climate-related opportunities.
Our Adaptation Layer data (part of our Risk & Resilience Index) suggests remediation measures to reduce vulnerability.
Our Climate Financial Impact Metrics identify key areas for investment to manage CapEx costs (e.g. insurance and utilities) and OpEx costs (e.g. retrofits and maintenance).
Calculate the amount of capital expenditure, financing or investment deployed towards climate-related risks and opportunities.
Our Climate Financial Impact Metrics calculate the impact of climate risks on cashflow via CapEx costs (e.g. insurance and utilities) and OpEx costs (e.g. retrofits and maintenance). Our climate-adjusted discount multiplier can be integrated into NPV modelling and exit valuation forecasting.
Explain the quantitative and qualitative climate-related targets the entity has set.
Our Climate Risk & Resilience Index scores are standardised globally and our software displays benchmarks for the global, national, provincial and city level, allowing for clear target setting.
EU Taxonomy Regulation
The climate projections and assessment of impacts are based on best practice and available guidance … in line with the most recent IPCC reports, scientific peer-reviewed publications and open source or paying models.
AlphaGeo models are developed based on IPCC as well as scientific, peer-reviewed research as detailed in our public technical documentation.
The physical climate risks that are material to the activity have been identified ... by performing a robust climate risk and vulnerability assessment.
Our Climate Risk & Resilience Index provides a comprehensive assessment of the risks, exposure and vulnerability of any location under multiple timescales and scenarios, including detailed data on the adaptation capacity of each location to offset the key climate physical risks.
The economic activity has implemented adaptation solutions that substantially reduce the most important physical climate risks that are material to that activity.
Our Adaptation Layer data (part of our Risk & Resilience Index) measures the adaptation capacity of any location to climate hazards and suggests remediation measures to reduce vulnerability.
EU Corporate Sustainability Reporting Directive (CSRD) European Sustainability Reporting Standards (ESRS)
Report assets at material / acute / chronic risk before considering climate change adaptation actions, as well as percentage of assets at risk. Disclose locations of significant assets at material physical risk (disaggregated by NUTS codes). Report revenue from business activities at material physical risk, as well as percentage.
Our Climate Risk & Resilience Index provides a comprehensive assessment of the risks, exposure and vulnerability of any location under multiple timescales and scenarios, including detailed data on the adaptation capacity of each location to offset the key climate physical risks.
Our Climate Financial Impact Metrics calculate the impact of climate risks on cashflow via CapEx costs (e.g. insurance and utilities) and OpEx costs (e.g. retrofits and maintenance). Our climate-adjusted discount multiplier can be integrated into NPV modelling and exit valuation forecasting.
Our Explorer SaaS platform can cluster locations according to their risk rating categories (high / med / low) as well as by asset value or percentage of a fund or portfolio.
Disclose percentage of assets at material physical risk addressed by climate change adaptation actions.
Our Climate Risk & Resilience Index provides a comprehensive assessment of the risks, exposure and vulnerability of any location under multiple timescales and scenarios, including detailed data on the adaptation capacity of each location to offset the key climate physical risks.
Our Adaptation Layer data (part of our Risk & Resilience Index) suggests remediation measures to reduce vulnerability.
Disclose whether and how anticipated financial effects for assets and business activities at material physical risk have been assessed. Disclosure magnitude of anticipated financial effects in terms of margin erosion for business activities at material physical risk.
Our Climate Financial Impact Metrics calculate the impact of climate risks on cashflow via CapEx costs (e.g. insurance and utilities) and OpEx costs (e.g. retrofits and maintenance). Our climate-adjusted discount multiplier can be integrated into NPV modelling and exit valuation forecasting.
Conduct at least one high-emission scenario to be used in identification of business hazards.
We offer three IPCC aligned scenarios, including the high-emission scenario (SSP5-8.5/RCP 8.5).
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