Business and financial markets information service provider Bloomberg announced an equity investment in riskthinking.AI, a provider of climate financial risk data analytics, along with a strategic partnership between the companies to explore climate financial risk modelling.
riskthinking.AI enables companies to comprehensively measure and manage climate financial risks using science-based, and methodologically rigorous models. The company’s solutions include the CLIMATEWISDOM Data Exchange, which collects and analyzes billions of data points to calculate climate-related financial risks, Climate Risk Classification Standards (CRCS), a standard designed to provide a consistent and transparent methodology for classifying transition and physical climate risk, and Climate Risk Ratings, based on algorithmically generated multi-factor scenarios that are used to stress-test an assets climate-related exposure to a range of risks including policy, economic, carbon, physical and social risk.
Dr. Ron Dembo, CEO and Founder, riskthinking.AI, said:
“It is of critical importance to make sure assets are valued appropriately on the financial markets. Current climate financial risk assessment lacks crucial, universal metrics including environmental, political, social and carbon factors for each specific geographic location and relevant asset type. We expect that this partnership with Bloomberg will have a profound effect on future assessment of climate financial risk moving forward.”
The companies stated that the new strategic partnership will explore the use of advanced risk modelling techniques in providing a deeper view into the climate-related impacts on the financial system.
Ben Macdonald, Global Head of Enterprise Product at Bloomberg, said:
“As investment managers look to understand the impact of climate risk in their portfolios, ready availability of high-quality data is the most critical factor, and also a significant challenge. Bloomberg is committed to improving access to these data and helping managers adopt sensible protocols for modeling, measuring and managing climate risk.”