Technology Platform for Financial Climate Risk Analysis “…assessing and reporting climate risk has never been so easy”

Technology Platform for Financial Climate Risk Analysis “…assessing and reporting climate risk has never been so easy”

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.

PLATFORM

Technology Platform for Climate Risk Financial Analysis

Our Climate Risk team has developed a pioneering platform focused on the assessment of climate risk and its impact on various assets.

REGULATORY FRAMEWORK

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