Jupiter climate risk data: Uniquely addressing the urgent needs of risk professionals

Risk professionals and insurers in Europe today confront two implacable forces.

One is extreme weather driven by climate change, with events – flood, extreme heat or cold, drought and fire – likely to become more severe and happen more frequently than ever in history.

The other is mandatory climate risk disclosure as investors, governments and regulatory bodies move to make companies, industries and economies more resilient to the financial fallout of climate disasters and the transition to a low-carbon world.

A tool for EU Taxonomy and other regulatory demands

The EU Taxonomy is an immediate example. By the start of 2023, companies listed on regulated markets (including subsidiaries), or with at least 500 employees within the European Union, must report physical risk impacts on its two initial objectives: climate change mitigation and climate change adaptation.

The urgency of this deadline and the importance of qualifying as a sustainable investment under the Taxonomy are driving companies’ concentrated efforts to identify, assess and report physical climate risk.

In order to prove that their activities contribute significantly to the EU’s environmental objective of climate change adaptation, and that they do no significant harm to the separate objective of climate change mitigation, respondents must conduct a climate risk vulnerability assessment.

Jupiter Intelligence, the global market, science and technology leader in climate data, is uniquely suited to this task for four main reasons:

• Its climate analysis is based on the most thorough and state-of-the-art climate models, and provides the most reliable and scientifically sound projections.
• Jupiter’s flagship solution, ClimateScore Global, covers the majority of the EU Taxonomy’s required climate hazards at 90-metre (portfolio-scale) resolution; in addition, it enables users to project potential climate impacts until 2100 in five-year increments, and across three different climate change scenarios.
• Its unique combination of aggregated hazard scores and 75 detailed peril metrics allow easy identification of portfolio-wide risk and the assessment of expected impacts in depth.
• Jupiter partners with some of the world’s biggest consultancies and auditors, to provide a full range of services for sustainability reporting if needed.

A successful climate risk assessment is a prerequisite for reporting on eligibility and alignment for the Taxonomy’s environmental objectives. In addition, it can be applied to other proposed mandates, TCFD frameworks and TCFD-aligned proposed regulations across jurisdictions such as Singapore, the UK, the US, Canada, Hong Kong, and New Zealand.

Beyond disclosure: Jupiter supports risk management and resiliency use cases.

In the private sector, Jupiter works with at least one of the world’s five largest firms in asset management, banking, insurance, pension funds and reinsurance – as well as top-five chemicals, minerals and mining, oil and gas, pharmaceuticals and utilities companies.

Reporting and compliance comprise only one application of Jupiter climate data. Companies are using it to make themselves, their operations and supply chains, and their portfolio of investments more resilient in the face of physical climate risk.

In financial services and insurance, Jupiter analytics are used for processes such as:

• Portfolio planning – to incorporate climate analytics into portfolio and reinsurance decisions; and to identify regions and lines of business that may become less economically viable to insure, or invest in and operate in.
• Pricing and underwriting – to improve underwriting guidelines to improve risk selection; integrate short- and long-term hazards into pricing; and to design and bring to market insurance products triggered by adverse climate conditions.
• Investment management – to understand how climate change will affect expenses and exit values for long-held real-estate assets; and to incorporate climate risk into market value analysis.
• Risk/resiliency engineering – to help customers minimise impacts of climate risk through risk engineering and resiliency insights; and to offer solutions to companies that have invested in mitigation.

Jupiter’s data and services, based on constantly advancing science, are designed to address organisations’ immediate needs, and demands of the future.