Technology Platform for Financial Climate Risk Analysis
Alpha-Klima emerged from the vision of our finance experts who saw the opportunity at the intersection of climate change and traditional financial risk management.
There is an urgent demand for tools that can assess the financial implications of both physical and transition climate risks. The first concern the increasing frequency and severity of extreme climate events (or acute hazards), such as floods, storms or wildfires, as well as longer-term climate trends (chronic hazards), such as temperature changes, water scarcity of rising sea levels. While transition risks refer to those resulting from the challenges of navigating the transition to a carbon-neutral economy.
Anticipating the trend, we set out to build a platform that would provide customized climate risks assessments tailored to corporations and financial entities while conforming to regulatory expectations…
SOLUTIONS
Alpha-Klima is a cost-effective technology platform for climate risk assessment that is both auditable and transparent. Developed through open-source collaboration, we embrace open and scientific methodologies to address and quantify climate risk exposures of companies and financial institutions. The capabilities of the platform include:
CLIMATE RISK ASSESSMENT
QUANTITATIVE FINANCIAL ANALYSIS
REGULATORY COMPLIANCE
EX-ANTE EVALUATION OF ADAPTATION
Alpha-Klima leverages open-source collaboration by building on the OS-Climate initiative (now merged with FINOS) led by the Linux Foundation.
PHYSICAL RISK
Access our inventory of hazard datasets and vulnerability models and combine state-of-the-art climate science with open methodologies to determine your exposure to physical climate risk. Quantify this exposure over different time horizons and climate scenarios (IPCC, NFGS…), manage financial risk and disclose it.
HAZARD
EXPOSURE
VULNERABILITY
FINANCIAL RISK
TRANSITION RISK
We provide transition metrics aligned with the guidelines of the Task Force on Climate-related Financial Disclosures (TCFD). This includes identifying critical metrics, such as the implied temperature rise (ITR), and detailing both the methodologies and data sources necessary for this analysis. Our approach makes use of the Paris Agreement Capital Transition Assessment (PACTA) methodology to evaluate how investment portfolios align with low-carbon scenarios, ensuring that our clients can meet sustainability targets effectively.
FAQs
Alpha-Klima provides comprehensive solutions to ensure your business complies with EU regulations like the Corporate Sustainability Reporting Directive (CSRD) and the Sustainable Finance Disclosure Regulation (SFDR). Our platform enables businesses to disclose climate-related financial risks in alignment with EU standards, providing transparency and boosting investor confidence. We guide you through the regulatory landscape to ensure full compliance with all sustainability-related requirements.
Alpha-Klima builds on physrisk, the open-source physical climate risk engine developed by OS-Climate, ensuring a fully transparent and auditable modeling framework. Our platform extends its capabilities through client-specific pipelines that transform physical exposure data into actionable climate risk metrics, aligned with regulatory frameworks such as CSRD or TCFD.
Technically, we leverage state-of-the-art tools from the Python ecosystem, including geospatial libraries like rioxarray, distributed computing with Dask, and advanced optimization and machine learning with Optuna. Our climate data inputs are drawn from the most recent peer-reviewed scientific literature, or, when not available, generated in-house by our data science team, which has developed pioneering methodologies for wildfire risk prediction.
What sets us apart is our rigorous approach to data and vulnerability modeling. Our damage functions are derived from academic research published in leading scientific journals, ensuring a scientifically grounded and replicable basis for assessing the physical impacts of climate change on assets and infrastructure.
Alpha-Klima provides advanced tools for assessing physical climate risks to your business assets and operations. Our platform combines geospatial data, climate science, and risk modeling to help identify vulnerabilities and estimate potential financial impacts. We offer actionable insights that support strategic planning, regulatory compliance, and investment protection in the face of increasing climate volatility.
Climate risk assessment refers to the process of identifying, analyzing, and managing both physical and transition risks associated with climate change. These risks can significantly affect a company’s assets, supply chains, and overall financial performance. Physical risks include extreme weather events like floods or heatwaves, while transition risks arise from policy changes, market shifts, and technological innovations. Conducting climate risk assessments enables businesses to anticipate disruptions, comply with regulations, and strengthen longterm resilience and sustainability.
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