Worldwide Consistent Climate-Related Financial Risk Estimation for Companies and Equities

We show how to estimate climate-related financial risks for individual companies and for portfolios of companies on a worldwide and consistent basis. The techniques used include multi-model ensemble statistics, specific climatological driving variables derived from these statistics, and econometric impact functions linking financial factors to the driving variables. Each of these elements is localized to company assets involving both physical and human capital, as well as their roles in company financial performance. We provide examples of the types of analysis that can be performed using these techniques for companies with worldwide asset bases and worldwide supply chains.