The challenge

Prior to working with Sust Global, Agendi completed high level qualitative studies using publicly available tools coupled with in-house modeling. They were keen to find a physical climate risk data provider using the latest climate and data science in order to remove uncertainty and provide rigorously validated projections efficiently. They also needed additional granularity in order to supply clients with site-specific data. Easily accessible and comprehensive datasets, incorporating multiple spatial resolutions, climate scenarios, and flexibility on time horizons, were also an important requirement due to the cross-functional nature of how the climate data is utilized by client companies to fulfill multiple climate objectives. For example:

• Risk teams may require data on projected hazards in the immediate future to fulfill immediate risk adaptation and mitigation requirements.

• Crossover teams may require projects over a greater time horizon when planning business operations over the long term.

• Sustainability teams may require granular, site-specific data across multiple emissions scenarios in order to complete TCFD disclosures.

Finance, facilities, business resiliency and legal teams are additional end users of this data.

Sust Global’s solution

Agendi has been able to provide enhanced physical climate risk reporting with the support of Sust Global’s data. The multi-hazard, multi-scenario dataset up to the year 2100 provides is expansive and easy to navigate, meaning it can be deployed to meet the varying requirements of clients across different teams and industries.

One example of how they supported a client project with Sust Global was by using our climate data to identify short- and long-term site risks across a portfolio. The client had a variety of owned assets in locations with long-term leases and little flexibility to relocate. Agendi were able to select all the locations and obtain insights on their respective risk exposure through our platform. They then ran an interactive business impact workshop with the client, running through the risk data, examining what resilience measures are in place, and comparing this with the vulnerabilities highlighted in the risk assessment. They were also able to look at impact bands further down the line and obtain granular reports and heatmaps which fed into existing risk management systems and risk team analyses, flagging sites at high exposure as well as any owned assets which had to be added to the risk register.

The increasing demand for TCFD reporting among clients has led to a consolidation of ESG platforms and desire for a more streamlined approach, which is supported by Sust Global’s flexible data integrations. Heatmaps and data visualizations have also formed an important component of cross-functional use of climate risk analyses.

In the future, deeper methodological insights around site exposure will add further value to client reports. Loss modeling assessments across multiple sectors and with more granular detail about thresholds of uncertainty will also strengthen their analyses.

If you would like to learn more about how Sust Global can help your organization assess physical climate risk, get in touch by completing the form below.