Climate risk has become an increasingly pressing concern in recent years, causing uncertainty for financial markets and insurance sectors worldwide. As the frequency and severity of extreme weather events continue to rise, so do the potential economic and social impacts of climate change.

Investors are progressively prioritizing informed decision making to mitigate potential losses, so integrating climate risk data into due diligence, portfolio screening and valuation processes has become imperative. This allows them to proactively identify, assess and address climate-related risks and opportunities, safeguarding their investments and enhancing long-term sustainability. 

With growing demand for climate risk data within the financial sector, organizations are highlighting a greater need for standardization around processes, validation, and comparison between methodologies to ensure consistency and quality assurance around data.