Carbon Delta's goal is to alert investors of the climate risk profiles of securities, uncovering a universal risk embedded within the financial system, which until now has been under-evaluated and overlooked.
Asset managers interested in key-performance optimization can use climate risk data to identify outperforms in their portfolios.
Substantial financial losses from climate change could materialize by mid-century. Get ahead of your competition by executing a downside risk-protection strategy for climate change.
Speak confidently with firms in your portfolio about future climate change costs and how to plan for or reduce these costs over time.
Embed sustainability matters within the C-suite of your firm and connect with the public institutions that you count on. Comply with regulations before they are enacted.
We offer numerous services to help clients understand and assess climate change risks.
Use Climate VaR calculations to protect your portfolio and optimize its performance.
Using only 3rd-party verified data, we offer comprehensive portfolio footprinting for Scope 1 and 2 carbon emissions.
We can help you craft a sustainability report, assist you with climate risk disclosure requirements or develop other material about climate risk performance.
If you are looking to establish new risk tools or even proprietary software, we can prepare your firm for climate change with our tailored support.
CARBON DELTA's research is used to understand company-level risks brought about by the impacts of future climate change. We calculate the economic effects of climate change on the underlying business model of thousands of companies by developing a detailed analysis on emission reduction requirements defined in forthcoming regulations, technology opportunities and changing physical climate conditions onto company activities.
All climate risk factors are expressed as quantified costs or revenues for each climate change scenario. The effect on a company’s related securities are then computed using standard financial valuation models. The relative change in asset price presents a worst case drawdown under the given scenario and is called Climate Value-at-Risk. It presents the maximum simulated drawdown of the underlying security. Future costs are modelled 15 years into the future.
The models we have developed integrate a wide spectrum of data, including:
CARBON DELTA uses a large set of over 50 different data sources. This includes publicly available as well as proprietary data. We utilize data from some of the most reputable climate and economic research institutes in the world. When possible, CARBON DELTA uses third-party verified, high-quality datasets.
Cost of the full implementation of voluntarily-declared low carbon development plans within the Paris Agreement, called the Nationally Determined Contributions (“NDCs”).
Cost of implementing a 2°C pathway.
Opportunities and costs arising from technological shifts and changes.
Effects related to Extreme Heat, Cold, Wind, Precipitation
Effects related to long term climate effects like droughts, sea level rise, etc.
We ensure transparency and optimal verification of our results in a three step process: