OS-Climate launches three tools for climate-related investing

OS-Climate, a non-profit organisation providing open-source data and software tools to support climate-aligned finance and investing, has launched three analytic tools.

Its new tools, Physical Risk & Resilience, Portfolio Alignment and Transition Analysis, were developed cooperatively by OS-Climate members, led by BNP Paribas, Allianz and Airbus respectively.

The Physical Risk & Resilience Tool enables financial and non-financial stakeholders to identify and quantify risk related to climate resilience through asset vulnerability models that use probability and severity forecasting of extreme climate events.

The Climate Portfolio Alignment Tool helps financial stakeholders to align portfolios at individual holdings and loan levels with the Paris Accord target temperature increase of 1.5 degrees Celsius.

Finally, the Transitional Analysis Tool lets corporations model, test and conduct scenario analysis for strategic climate-aligned decisions. It claims this will support the large-scale transition of real economy corporations toward Net Zero and resilience through climate-aligned investments in R&D, capital projects, other infrastructure and supply chain.

OS-Climate stated that its tool development has moved into a new stage. Enabled by cloud services contributed by Amazon and Microsoft, it has opened its gates to the global community of academic institutions, government agencies, modellers, and software developers for further powerful collaboration in building out the tools and Data Commons, a library of data and metadata suitable for use with OS-Climate’s toolset.

In addition to Airbus, Alliance and BNP Paribas, OS-Climate’s corporate members include Amazon, BNY Mellon, EY, Federated Hermes, Goldman Sachs, London Stock Exchange Group, Microsoft, the UN-convened Net-Zero Asset Owner Alliance, Ortec Finance, Red Hat, and S&P Global.

OS-Climate CEO Truman Semans said, “These tools will generate the refined data and actionable insights needed for pension funds, asset managers, and banks to rapidly align their investments and loans to net zero and resilience goals. They can be used not only by the leading members within the Glasgow Financial Alliance for Net Zero (GFANZ) but the rest of the global financial community.”

Climate considerations have become an increasingly important part of investing. Earlier this month, Switzerland’s Federal Council launched Swiss Climate Scores, which is based on a series of indicators focused on providing transparency into the connection of firms and global climate goals.

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