Assessing climate risk – the role of data

In recent years attempts to curb global warming have placed significant emphasis on the economic implications and risks associated with decarbonization – often at the expense of discussing the practical steps that need to be taken to mitigate the very real impact of climate change itself. Consequently, physical risks have largely been unaccounted for, rendering climate-risk data of limited value for investors, asset managers and lenders. 

Fast forward to today, where extreme weather events have now become more frequent and severe in nature. This is especially true with regard to flooding, with extreme events changing in both frequency and severity. These changes are having a profound impact, including the devastation of crops from inland flooding and the threat to coastal towns and cities from rising tides and changing storm surge magnitudes. 

As risk managers seek to make informed decisions and avoid potentially unexpected losses, the need for high-resolution, complete and globally-consistent climate-risk datasets is rising, with investment and lending sectors seeing unprecedented demand for data.

This demand is driving the growth of a largely unregulated global climate risk data industry where global advisory firms, banks and established data providers compete with start-up businesses. Barriers to entry are low, and data governance standards vary, giving rise to questions around data quality and greenwashing. For risk managers navigating this complex space, it is essential to remain critical of the data being consumed and to adopt a measured approach to the selection and use of data within their analyses.

Starting at a macro level with climate risk data and progressing to flood risk data, this panel discussion brings together experts from across the financial sector. They will examine key drivers behind the growing demand for climate risk data and share best practices on how the market can improve data selection, integration and adoption.  

Post-event, Fathom will publish a short paper detailing the outcomes of the discussion.

Your panel of experts will be chaired by Fathom’s Chief Research Officer, Dr Oliver Wing, and includes:

Jack Watt –  VP, Marsh

Based in London, Jack is a VP in Marsh’s global team responsible for innovating how it supports clients manage their climate and sustainability risks. He has a particular focus on climate physical risk from a supply chain context, as well as wider sustainability risk management.