Viridian Analytics

We are hiring! Viridian Analytics is putting the price-tag on #climaterisk. Climate risk #analysts - come and join us at the forefront of climate risk modeling, through #bigdata and #ai.

In the evolving ESG and #climatedata landscape, making informed decisions is crucial. Forrester's recommendations (see comments) provide a clear guide on selecting data providers, and at Viridian, we're proud to align with these best practices. Comprehensive Data & Analytics: We offer granular #ESGdata feeds, and use AI to ensure real-time, forward-looking insights. Seamless Integration: Our centralized data management systems and API integrations enable effortless incorporation of ESG data into your workflows. Regulatory Alignment: Our data solutions comply with key #sustainability frameworks like CSRD, IFRS, and SFDR, helping you stay ahead of regulatory changes. At Viridian, we empower our clients with reliable, actionable ESG and climate data. Ready to enhance your sustainability efforts? Contact us today to learn more!

KPMG's latest research shows that nearly one-third (29%) of companies feel prepared for independent #ESGdata assurance, a slight increase from nine months ago. As regulatory deadlines for ESG reporting approach, the gap between leading companies and those in early stages of readiness is widening. 🔍 Key Findings: * Readiness Levels: The research categorizes companies into Leaders (29%), Advancers (46%), and Beginners (26%). While Leaders have shown a 6% increase in their readiness scores, the average score for Beginners has dropped by 6%. * Revenue Impact: Higher revenue companies are more advanced in ESG assurance preparations. Companies with revenues over $100bn score 69.5, while those under $5bn score 39.3. * Geographic Insights: France leads in ESG readiness, followed by Germany and Japan. 🌱 Benefits of ESG Assurance: * Companies ready for ESG assurance see benefits beyond compliance, including greater market share (56%), decreased costs (48%), and new business models (46%). * Leaders report significant improvements in product quality, business risk reduction, staff engagement, credit ratings, and market share. 🔗 Supply Chain Focus: * Leaders are increasingly demanding robust, product-specific ESG requirements from suppliers, rising from 28% in 2023 to 42%. More Leaders are also integrating ESG screening into supplier onboarding and requiring suppliers to provide ESG data. * Beginners, however, largely maintain basic supplier requirements, such as anti-bribery and corruption stipulations. The findings underscore the urgent need for companies to enhance their #ESGpolicies, skills, and systems to meet upcoming regulatory demands and leverage the benefits of robust ESG assurance.

Central bankers have made significant strides by using #ai to assess climate-related #financialrisks . The Bank for International Settlements, along with the Bank of Spain, Germany’s Bundesbank, and the European Central Bank, utilized their experimental Gaia AI project to analyze company disclosures on carbon emissions, green bond issuance, and voluntary net-zero commitments. High-quality data is crucial for regulators to assess the impact of #climatechange on financial institutions. However, varying reporting standards create a patchwork of public information. Gaia AI addresses this by overcoming differences in definitions and #disclosureframeworks , providing much-needed transparency and enabling easier comparisons of climate-related financial risks. The flexible design of Gaia may serve as a model for AI-enabled applications in broader use cases for #centralbanks and the financial sector.

A recent Risk & Insurance interview with Christof Reinert, head of Risk Management Partners at Munich Re, reveals important takeaways about the future of modeling #climaterisk 🌍 📊 Climate Projections: Munich Re uses #climatemodeling to project future scenarios up to 2100, aiding financial institutions and corporates in long-term planning. 🌱 Risk Mitigation: The focus is on mitigating risks from #naturaldisasters and supporting climate-friendly technologies and loss prevention. 💼 Impact on Underwriting: Munich Re has integrated climate risk into their models since the 1970s, continuously adapting to changes in the risk landscape. Energy Infrastructure Risks: Reinert highlights the importance of protective measures for sensitive infrastructure like solar farms, comparing them to agricultural risk management. 🔧 Areas for Improvement: Improving prediction and protection levels, especially through high-quality data and understanding risk mechanisms, is crucial.

A recent study published in GSC Advanced Research and Reviews argues that #predictiveanalytics is becoming an essential tool in #climatefinance , providing investors with vital insights into the risks posed by #climatechange and the opportunities for #sustainableinvestment . 🔍 Key Findings: * Navigating Climate Risks and Opportunities: Predictive analytics helps investors manage climate-related risks such as #extremeweather events, sea-level rise, regulatory changes, and technological shifts. It also identifies growth opportunities in sectors like renewable energy, clean technology, and climate-resilient infrastructure. * Advanced Methodologies: The study highlights the use of climate models, satellite imagery, socioeconomic indicators, and financial data to analyze historical trends and future projections. This approach provides actionable insights for investment decisions, aligning portfolios with climate-related goals. * Challenges and Solutions: Adoption challenges include data quality issues, model uncertainty, regulatory complexities, and the integration of climate factors into financial decisions. The study calls for interdisciplinary collaboration, robust risk assessment frameworks, and innovation in predictive analytics methodologies. 💡 Transformative Potential: Enhancing Resilience and Sustainability: Predictive analytics can significantly improve the resilience and sustainability of investment portfolios. Investors can manage risks, seize sustainable opportunities, and support the transition to a low-carbon economy. Strategic Imperative: As climate change profoundly impacts financial markets, integrating predictive analytics is crucial for investors to navigate the evolving landscape of climate finance effectively.

The 2023 Climate Risk Insurance (CRI) Annual Report reveals significant achievements from WFP-supported CRI programs. Highlights include: 🌍 Global Climate Challenges: 2023 saw extreme #heatwaves, devastating #floods, unprecedented storms, and persistent #droughts impacting communities worldwide. 🔒 Financial Protection: WFP continues to scale up Climate and Disaster Risk Financing and Insurance (CDRFI) to shield communities from climate-induced losses and prevent hunger and food insecurity. 📈 Milestones Achieved: Since 2008, WFP has been committed to advancing financial protection for food-insecure communities and enhancing governments’ disaster risk financing and response strategies. In 2023, WFP provided climate insurance to 5.1 million vulnerable people across 27 countries, surpassing its 2025 target ahead of schedule, with financial coverage nearing US$300 million. 💧 Impactful Payouts: In regions hit by droughts, floods, and #tropicalcyclones, WFP disbursed US$17.8 million in payouts, assisting nearly 800,000 people – a US$3 million increase from 2022. 📚 Stories from the Field: The report includes detailed insights into CRI programs in various countries, along with stories from the field, interviews with partners, and a focus on promoting gender equality and women’s empowerment in WFP programs. 📖 Dive into the report to learn more about how WFP is making a difference in building resilience against #extremeweather events and supporting vulnerable communities worldwide.

The recently published UNEP FI 2024 Climate Risk Landscape Report is a comprehensive guide for financial institutions to assess and manage physical and transition climate risks. Key features include: 1. Tools and Best Practices: Detailed guidance on utilizing tools to boost institutional #resilience. 2. Case Studies: Real-world examples of successful #climaterisk management. 3. Regulatory Insights: Updates on evolving climate-related disclosure frameworks and market developments. Building on the United Nations Environment Programme Finance Initiative (UNEP FI) FI’s Climate Risk and TCFD Programme, this report is essential for banks, insurers, and investors aiming to enhance climate risk management and support global #sustainability.

The Federal Reserve's recent test revealed that major banks, including JPMorgan Chase, Bank of America, and Goldman Sachs, struggle to reliably model #climaterisks . Fed Vice Chair Michael Barr noted that banks are still in the early stages of understanding these risks, facing significant #datagaps and uncertainty. Key Takeaways: 1. Data Gaps: Banks lack critical data and expertise in climate-risk modeling. 2. Global Challenge: Similar issues are faced by regulators worldwide, such as the Bank of England. 3. Next Steps: Banks plan to improve climate risk analysis, investing in better data and models. The results serve as the latest signal that financial firms and regulators must improve #climatedata and modeling to more accurately measure and address the financial threats of #climatechange.

A recent analysis by InfluenceMap reveals a striking disparity in global #co2 #emissions. From 2016 to 2022, 80% of CO2 emissions came from just 57 companies, predominantly involved in #coal, #oil, #naturalgas, and #cement production. Key Findings: 1. Massive Emissions from Few Companies: In 2022 alone, these companies contributed approximately 30,000 megatons of CO2 emissions. 2. China's Dominance: Since the 2015 Paris Agreement, China's state-run coal production has been the top carbon emitter, responsible for 25.79% of global emissions from 2016-2022 and 14% historically. 3. Rising Emissions Post-Paris Agreement: 58 of the top 100 carbon-producing companies have increased their production since the Paris Agreement. This trend is evident across all continents, notably in Asia, the Middle East, and Europe.