Sustainability data and analytics company Clarity AI announced the announced the availability of its asset-level physical risk solution, aimed at enabling asset owners, investors, and banks to assess climate-related physical risks at the asset-level, across a broad range of hazards, scenarios and timelines.

According to Clarity AI, physical climate risk is increasingly becoming an immediate financial concern, with more than 75% of institutional investors expecting it to affect asset prices within five years, while more than half say extreme weather events are already having a greater impact on investment decisions than in previous years, with the new solution aimed at addressing a lack of granular asset-level data required to accurately measure physical climate risk.

The new Physical Risk solution assesses climate-related physical risks across 16 climate and nature hazards, nine climate scenarios, and five time horizons, with coverage of more than 3 million assets across over 17,000 companies, including more than 2 million material assets identified through Clarity AI’s proprietary framework as critical to a company’s core operations.

Clarity AI said that the new solution also enables institutions to upload proprietary asset data or request coverage on demand, enabling physical risk exposure for any asset or portfolio beyond the standard universe.

Alice Borgonovo, Climate Solutions Lead at Clarity AI, said:

“The conversation around climate has evolved, and it’s no longer enough to simply know a risk exists. Investors need to understand its financial implications and measure it with the same rigor as any other financial risk. Unlike existing solutions, we are bringing to market the granularity and transparency investors need to make informed investment, lending or strategic decisions based on comprehensive physical risk data.”