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Quantify—and Drive Mitigation of—Physical Climate Risk Within Portfolio Companies

Asset Management

Jupiter Intelligence™ works with four of the world’s Top 10 asset management firms, empowering them to be proactive in identifying, quantifying, and mitigating physical climate risk within their portfolios. Jupiter turns gold standard climate science into actionable data for organizations looking to assess, manage, and disclose the physical risks of climate change and strengthen climate resilience. ClimateScore Global delivers the broadest set of leading-edge data covering the planet’s surface with 22.3 billion locations and 1+ petabytes of data, including 11,700 metrics across multiple climate perils.

solutions

Use Cases

Portfolio optimization

  • Understand physical risk by company (both public and private) for existing and new investments through CEM (corporate entity modeling) 
  • Integrate climate risk data to adjust asset allocations within portfolios, enhancing resilience to climate change and potentially improving long-term returns by reducing exposure to high-risk sectors
  • Create and manage sustainable and green funds based on better climate risk intelligence

Portfolio risk assessment

  • Construct portfolios and assess their exposure to physical climate risk for individual entities and entire investment portfolios 
  • Generate asset data for high-resolution climate assessments
  • Create bespoke, automated reports and visualizations for use on investment teams
  • Develop portfolio benchmarks to identify entity outliers who are over/under exposed to climate hazards
  • Calculate climate risk impacts to income statements and balance sheets (revenue, expenses, EBITDA, total asset value)

Asset risk assessment

  • Utilize climate risk assessment tools during initial investment screening to identify assets or sectors with lower exposure to physical climate risks, aligning with a sustainable and risk-averse investment approach
  • Quantify and optimize both real asset and financial asset value exposure to physical climate risk 
  • Integrate physical climate risk into financial projections
  • Analyze risk for individual companies to provide guidance on risk mitigation measure opportunities
  • Understand emerging supply chain risk to companies and identify key upstream and downstream facilities that have the largest impacts to company financials

Competitive differentiation

  • Offer investment products that are tailored to minimize climate risks, differentiating their offerings in a market increasingly focused on sustainability and responsible investing

Climate risk disclosure

  • Use climate risk assessments to ensure that investment strategies comply with emerging regulations on climate risk disclosure and sustainable investing, avoiding potential legal and financial penalties

Corporate guidance

  • Facilitate more detailed risk disclosures, and understand when to require a more comprehensive assessment and disclosure of climate risk from portfolio holdings
  • Educate internal and external stakeholders on climate risk impacts 
  • Persuade corporations, senior executives, and boards to take action
  • Integrate climate risk analysis into enterprise risk management decision-making

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Additional resources

Asset Management Use Case

[On-Demand Webinar] Climate Change and Asset Valuation: What Every Business Needs to Know

[eBOOK] Climate Intelligence: The Untapped Alpha in Private Equity's Risk Assessment

See what Jupiter can do for your business.

Paired with a Jupiter expert that specializes in your industry, we will work together to assess your needs and determine the best-in-science physical climate risk analytics approach for your organization.

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