Strategic economics consultancy Vivid Economics announce the launch of Planetrics, a new solution designed to enable financial institutions to quantify, report and manage climate-related risks and opportunities quickly and easily, down to the level of individual assets.

According to Vivid Economics, Planetrics uses highly detailed analytics to model and price climate risk – including both physical risk and transition risk – for tens of thousands of assets globally, simulating the impact of climate risks in four major asset classes, including equities, debt, sovereign bonds, and real estate.

Thomas Nielsen, Planetrics Chief Executive, said:

“Typically, climate risk is not priced correctly. When it comes to climate, we can’t use the past as a guide. We know that the future is going to be different. Our solution gives organizations the ability to assess many possible scenarios, accounting for new technologies, changing climate policies and the physical impacts of temperature increase, so the risk can be priced correctly.”

Through its suite of customizable climate, economic and financial models, Planetrics is designed to enable users to build more climate-resilient portfolios for the long term, protect assets from the effects of climate change, engage with companies in exposed sectors, and identify new growth and investment opportunities. Vivid Economics stated that banks, investors and other financial institutions globally are already using Planetrics’ solution to model risks to help meet and exceed the requirements of Task Force on Climate-related Financial Disclosures (TCFD) reporting and other frameworks including the Bank of England’s climate-focused Biennial Exploratory Scenario (BES) stress test.

Jason Eis, Executive Director of Vivid Economics and Chairman of Planetrics, said:

“There is no excuse for financial institutions not to take climate risk into account. Not only do the new regulations make it a fiduciary duty, but it also makes financial sense. By identifying risk properly, our users will quickly spot opportunities the rest of the market has not yet seen.”