Comprehensive Climate Change Risk Management

CARBON DELTA is a boutique equity research firm that specializes in identifying and analyzing the climate change resilience of publicly traded companies. We have developed a proprietary evaluation system that helps investors assess climate risks in their portfolios. We identify how much a company’s value is possibly affected by climate change.


  •  2490 companies (MSCI ACWI Index)
  •  Geo-reference model with over 13'000 different locations
  •  Modelling of the whole value chain
  •  Extensive list of partners and supplier data
  •  Geographical and sector distribution of sales
  •  Exact production and infrastructure locations on city level
  •  IPCC based climate data based on a large set of climate models
  •  Exact sea-level rise information for all major coastal cities

Carbon Delta uses a large set of over 20 different data sources. This includes publicly available data, as well as proprietary data from various financial data providers. In addition to the financial data, different climate data sources are utilized such as extreme weather risk data and climate model trends based on the IPCC climate pathways.

For each company we model the whole value chain from supply, to production, to distribution. Each company is analyzed on geographical and sector breakdowns on each step in the value chain.

This data is then "mapped" against the model factors.


  •  Regulations
  •  Technology
  •  Extreme Weather
  •  Climate Trends
  •  Paris Agreement 2°C test

Our model factors illustrate that we tackle the issue very comprehensively. We model all the relevant key factors including the following:

We model how changes in climate-related regulations and greenhouse gas targets impact a portfolio.

We take into account substitutes of a technology related to clean technology advancements.

Extreme weather poses a risk for the supply chain, the production as well as for sales. We model all these aspects.

The impact of climate change trends on a portfolio are also included in our model.

The greenhouse gas budget has potential large affects on a company. We factor these risks in.


  •  Standard DCF modelling
  •  Expert analysis
  •  Company engagement
  •  Calibration with insurance data

Carbon Delta's model is constantly verified with various methods to ensure the most accurate estimates possible.


  •  Portfolio optimization
  •  Customized model evaluation
  •  Competitor and scenario analysis
  •  Market research

Portfolio managers can use our data to asses the climate risks in their portfolios. Our data helps to identify a portfolio's most climate risky positions. Active managers can show how to reduce climate change related risks by comparing to benchmarks.

Companies can use our analysis to verify their climate strategy. This is useful for addressing concerns of product managers as well as investors. Competitor comparison shows how the strategy performs in the sector. Using our model with internal company data or virtual company data derived from future business plans allows more detailed evaluation and scenario analysis. Our IT competences allow the development of customized model factors for sector specific needs.

Aggregation of the model output can provide interesting insights into whole markets. These can either be geographically or sector based aggregates.