Our Brochure

Climate Value-at-Risk (CVaR)

Climate VaR is an assessment method to quantify climate change risks in a framework that is applicable across investment portfolios.

With our Climate Value-at-Risk (CVaR) model, we aim to empower financial institutions with the tools necessary to protect assets from the worst effects resulting from climate change and also help identify new and unforeseen investment opportunities in the low carbon field.

This risk measurement helps investors to comprehensively assess future costs related to climate change and understand what those future costs could mean towards the current valuation of securities. The premise of Climate VaR is to aggregate costs related to specific climate risks over the next 15 years and calculate what these costs might signify about financial performance into the foreseeable future

Carbon Delta’s Modeling Philosophy

Climate Value-at-Risk

Climate Change impacts company A

Climate Value-at-Risk

Carbon Delta calculates company A’s cost of climate change

Climate Value-at-Risk

Carbon Delta shows impact on company A’s stocks & bonds

Climate Value-at-Risk

Carbon Delta calculates the possible impact on a portfolio including company A

Global coverage

  • 22,000 companies and 60,000 securities, all business sectors
  • Equities and corporate bonds
  • Aggregation across sectors, countries, currencies or whole portfolio

Protect your returns

  • Climate VaR calculates potential impact on investment returns
  • Use of present value calculations to expose impact on asset classes
  • Climate VaR is security-level analysis

Sound methodology

  • Objective and quantitative modeling only
  • 3rd party verified datasets
  • Fully transparent calculations

Projections into the future

  • All scenarios are 15 year scenario projections
  • Modeling of numerous scenarios possible

Carbon Delta analyzes several scenarios per company, providing a comprehensive overview of exposure to climate change risks and oppotunities.

Regulatory Scenarios

The risk and related costs for companies to comply with emissions limitations if a global goal to prevent no more than 3°C, 2°C or 1.5°C of warming is implemented.

Technology Opportunities

To identify company-specific, climate change related investment opportunities, Carbon Delta assembled a patent database with details outlining the low carbon technologies that firms have been developing, which is used to forecast future green revenues.

Extreme Weather

The risk and related costs of extreme weather events for a company, relating to heat, cold, wind, precipitation, snowfall, wildfires and hurricanes.

Data Sources

Carbon Delta uses the best available data on climate change risks. We have longstanding relationships with world-renowned climate change research institutes, academics, non-profit organizations and numerous multinational companies.

Our in-house knowledge and relationships help us to identify and attain only the highest quality data and information sources. Our computer models use a combination of publicly available and proprietary data, and we are pleased to offer all details on our data sources as well as answer any questions you might have on our sources with a confidential agreement in place.

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