Getting started on physical climate risk analysis in finance - available approaches and the way forward

The document reports on the ClimINVEST project which aims to facilitate financial decision-making by offering tailored indicators, tools and maps for financial institutions. This is in reponse to the fact that financial actors currently lack tools to assess how physical changes could affect their assets in specific sectors or locations. 

The project intends to improve the communication between climate researchers and the financial community and contribute to capacity building on adapting to climate change. The tools developed by ClimINVEST should also help financial actors to disclose climate risk in their portfolios, in accordance with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

The objective of this first report is to identify existing approaches of physical climate risk analysis that target financial actors.