#ClimateData

[esgdata1992]

Best Practices in Climate Reporting: Accounting for Long Short Portfolios and Derivatives

Climate change is one of the most pressing issues of our time, and accurate reporting is crucial for raising awareness and driving action. A recent article on Inrate.com delves into the best practices for climate reporting, specifically focusing on how to account for long, short portfolios, and derivatives.

𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬:

𝐊𝐧𝐨𝐰 𝐘𝐨𝐮𝐫 𝐀𝐮𝐝𝐢𝐞𝐧𝐜𝐞: Tailor your reporting to resonate with your audience’s level of understanding and interest in climate issues.

𝐌𝐚𝐤𝐞 𝐭𝐡𝐞 𝐂𝐥𝐢𝐦𝐚𝐭𝐞 𝐂𝐨𝐧𝐧𝐞𝐜𝐭𝐢𝐨𝐧: Highlight the link between climate change and its causes, such as burning fossil fuels.

𝐇𝐮𝐦𝐚𝐧𝐢𝐳𝐞 𝐚𝐧𝐝 𝐋𝐨𝐜𝐚𝐥𝐢𝐳𝐞: Share personal stories and local impacts to make the issue more relatable.

𝐂𝐞𝐧𝐭𝐞𝐫 𝐂𝐥𝐢𝐦𝐚𝐭𝐞 𝐉𝐮𝐬𝐭𝐢𝐜𝐞: Focus on how marginalized communities are disproportionately affected by climate change.

𝐈𝐧𝐜𝐥𝐮𝐝𝐞 𝐒𝐨𝐥𝐮𝐭𝐢𝐨𝐧𝐬: Offer actionable solutions and innovations to combat climate change.

Read more

[esgdatainrate]

Role of Climate Data in Assessing Portfolio Risk

As global climate continues to redefine the state of the world, investors are starting to consider ever more the environmental element in their analysis of risk and performance. However, how do we incorporate climate data into an investment strategy?

Inrate has just released a blog: why using climate data is indispensable to understand both physical and transition risks.

𝐂𝐥𝐢𝐦𝐚𝐭𝐞 𝐫𝐢𝐬𝐤 𝐝𝐚𝐭𝐚 𝐩𝐫𝐨𝐯𝐢𝐝𝐞𝐬 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 𝐰𝐢𝐭𝐡:

𝐀𝐧𝐚𝐥𝐲𝐳𝐞 𝐞𝐱𝐩𝐨𝐬𝐮𝐫𝐞: Understand where extreme weather events, or regulatory changes, or shifts in market preferences toward sustainable products are likely to impact event areas, companies, or sectors.

𝐈𝐝𝐞𝐧𝐭𝐢𝐟𝐲 𝐟𝐮𝐭𝐮𝐫𝐞 𝐯𝐮𝐥𝐧𝐞𝐫𝐚𝐛𝐢𝐥𝐢𝐭𝐢𝐞𝐬: This analysis through scenario-based consideration can help investors determine how their portfolios may perform for different climate scenarios, from limitations in global warming to carbon tax imposition. Better risk insights will result in the improvement of investors’ ability to optimize portfolios and channel capital into the more resilient companies in climate change, paving a pathway to a sustainable future.

Including climate data in the risk assessments of investment portfolios means that investors will shift from using traditional risk models to analyze much more significant implications of environmental factors. It’s pretty clear that a sustainable future requires informed decision-making, and climate data plays the role in defining a more resilient investment strategy. Let’s make the best use of these insights towards making this world an even more sustainable and risk-conscious investment world!

Read More: Role of Climate Data in Assessing Portfolio Risk

[biglisbonnews]

ClimateLearn from UCLA Researchers: Bridging the Gap Between Climate Science and Machine Learning Continue reading on Medium » https://multiplatform.ai/climatelearn-from-ucla-researchers-bridging-the-gap-between-climate-science-and-machine-learning/

[davidbuckleyborden]

Vile Water. #waterrights #earthcrisischarms #climatedata #predicts #conflict #hotspots (at Cambridge, Massachusetts) https://www.instagram.com/p/CBSqIqLJrTp/?igshid=18scjrirho5gc

[exploremars]

Apart from actually wandering the #Martian #terrain yourself, @apoapsys has taken @uahirise 🛰 #data #imagery from #mars via the @mars_orbiter & #digitallyenhanced it into #stunning #quality 📸 Kevin Gill is a #softwareengineer #planetaryscientist self-proclaimed #climatedata wrangler & #science #data #visualization #artist at @nasajpl

[esgtrends]

Climate Reporting of Long-Short Investment Portfolios and Derivatives: A Best Practice Approach for Transparency

In an era where climate change poses significant risks and opportunities for investment portfolios, transparency and accuracy in climate reporting have become more critical than ever. While practices for reporting on climate related-matters for long-only portfolios has become more established, the reporting of portfolios that include derivative positions is still evolving.

Inrate’s new report presents a best-practice approach for combining long and short positions in climate reporting. The fundamental idea behind the approach is to capture the economic exposure of portfolio positions for both long and short positions based on the principle of market signals. To ensure traceability, the respective portfolio segments need to be recognized separately.

Using the Finreon Carbon Focus® portfolio as a case study, the report illustrates how long-short strategies can effectively reduce financed emissions. Combining long positions in low-carbon leaders with short positions in CO2-intensive companies offers a way to reduce financed GHG emissions while simultaneously sending market signals.

Inrate is delighted to be working with a specialist in this field, combining sustainability expertise with innovative investment approaches.

For more information Contact Glen Boschi

About Inrate

Inrate is a leading provider of ESG impact ratings sustainability data, committed to driving transparency and accountability in the financial sector. With a focus on innovation and excellence, Inrate offers a comprehensive range of ESG data solutions that empower asset owners, managers, and other stakeholders to make informed decisions that contribute to a more sustainable future.

[esgtrends]

Role of Climate Data in Assessing Portfolio Risk

Climate-related factors are increasingly being incorporated into financial analysis, with a growing consensus among financial institutions on the importance of understanding the risks and opportunities emanating from climate change. In financial analysis, climate data focuses on metrics that primarily impact asset value, operational costs, and investment returns. These metrics may be qualitative or quantitative, such as greenhouse gas (GHG) emissions and targets, extreme weather events tracking, climate scenario analysis, and climate-based regulatory changes and market trends.

Collecting, reporting, and analyzing such climate data is essential for portfolio assessment for the following reasons:

1. Rising Physical Impacts: The number and severity of extreme weather events, such as wildfires, hurricanes, and droughts, have increased over time, especially in the last few years. While financial institutions have limited exposure to physical impacts through their physical assets, they need to consider the indirect effect on their financial assets depending on their exposure and vulnerability to climate hazards.

2. Regulatory Changes: With the rise of policies and regulatory frameworks, such as the Corporate Sustainability Reporting Directive (CSRD) and Task Force on Climate-Related Financial Disclosures (TCFD), which mandate reporting on the effects of climate change on a company’s operations and vice versa, the need for a strategy to collect and analyze climate data has become more prominent.

3. Investor Demands: There has been a growing demand from investors for more visibility into climate-related variables in their portfolios. While the reasons for investor interest in climate data may range from risk adjustment to sustainability tilts, overall, this trend has resulted in a higher demand for climate data-based analysis, especially from shareholders, debtors, and other stakeholders.

4. Reputational Risk: Public concern about climate change has grown profoundly, and customers and stakeholders are increasingly urging institutions to participate in the transition toward a low-carbon economy. Hence, it is important to incorporate climate data into due diligence practices to avoid any climate-related controversies attracting negative media attention.

These elements have brought climate impact data solutions to the forefront of financial and corporate strategy. As climate risks escalate, the relevance of accounting for climate-related factors in environmental, social, and governance (ESG) portfolio analysis for investors, asset managers, portfolio managers, and financial institutions has grown, along with the need for more comprehensive data reporting.

Recent developments in climate change data reporting standards and frameworks, such as the International Sustainability Standards Board (ISSB), Global Reporting Initiative (GRI), CDP, Sustainability Accounting Standards Board (SASB), European Sustainability Reporting Standards (ESRS), etc., have enabled companies to report on their climate change data more effectively. This makes it easier for portfolio managers to incorporate climate data solutions into risk assessment and harmonize portfolios with long-term sustainability goals. This analysis is integral for investors and portfolio managers, as it helps them reduce their exposure to climate risks and identify avenues for opportunities by offering insights into how environmental factors affect future earnings and asset value.

Here are some key ways financial institutions can use their climate data to inform portfolio risk analysis:

1. Geographical and Physical Risk Analysis: The insights provided by climate data allow investors to assess the exposure and vulnerability of their assets. With advanced tools, portfolio managers, investors, or financial institutions can identify the location of their investments and compare these with climate forecasts. For example, the risk of rising sea levels can be understood in terms of the vulnerability of a real estate portfolio. The possibility of assessing these impacts may allow managers to hedge against potential risks, divest from assets at risk, or explore insurance options to curtail their financial exposure.

2. Carbon Footprint and Transition Risk Analysis: As governments and regulatory bodies move toward aligning with a low-carbon economy, there is high transition risk for businesses, and consequently for portfolios that are fossil fuel reliant. In such cases, climate data can help assess the carbon footprint of companies and sectors within a portfolio. An investor can then analyze the extent to which a company will face future regulatory pressures, higher carbon taxes, or stranded assets as fossil fuels become less viable, and evaluate the efficacy of its current transition strategies.

3. Climate Scenario Analysis: Portfolio managers can conduct scenario analysis to validate how different climate pathways may impact the financial performance of companies. For instance, in a 2°C rise scenario, firms that are closer to a low-carbon economy, such as renewable energy-based ventures, may perform better, potentially rewarding those equity exposures. Such analysis can be key to understanding the positioning of a portfolio and developing energy transition pathways.

4. Data on Biodiversity and Natural Capital: For investment portfolios across several industries, such as agriculture, forestry, and pharmaceuticals, information related to biodiversity and ecosystem services has become increasingly important. Since climate and nature are inherently interlinked, their risks intersect and compound with one another, necessitating a combined strategy for both. With the rise of nature-based frameworks such as the Taskforce on Nature-related Financial Disclosures (TNFD), there is a move to view both nature- and climate-related data through the same lens and to incorporate them collectively in investment decision-making.

5. Social and Economic Impact Data: Climate change has wide-ranging social and economic implications that can drive portfolio returns. Data showing how climate change affects migration, economic disparity, or health outcomes can help portfolio managers and investors identify risks associated with sectors such as healthcare, consumer goods, and insurance. On the contrary, climate data can also serve as a starting point for evaluating potential opportunities. The transition toward a low-carbon economy opens investment opportunities in avenues like sustainable agriculture. Investors and portfolio managers may use climate data to choose companies that emerge at the forefront of such a transition.

Conclusion

Integrating climate-related data into the assessment of portfolio risks is essential for every portfolio manager or investor aiming to become more resilient and ensure long-term growth. Advanced climate models and data tools have increased in sophistication, allowing investors, asset managers, and portfolio managers to make better estimates of physical and transition risks. This capacity enables investors to defend their portfolios against the increasing effects of climate change while also seizing new opportunities in a rapidly changing global economy.

[esgdata1992]

Role of Climate Data in Assessing Portfolio Risk

Here are some key ways financial institutions can use their climate data to inform portfolio risk analysis:

1. Geographical and Physical Risk Analysis: The insights provided by climate data allow investors to assess the exposure and vulnerability of their assets. With advanced tools, portfolio managers, investors, or financial institutions can identify the location of their investments and compare these with climate forecasts. For example, the risk of rising sea levels can be understood in terms of the vulnerability of a real estate portfolio. The possibility of assessing these impacts may allow managers to hedge against potential risks, divest from assets at risk, or explore insurance options to curtail their financial exposure.

2. Carbon Footprint and Transition Risk Analysis: As governments and regulatory bodies move toward aligning with a low-carbon economy, there is high transition risk for businesses, and consequently for portfolios that are fossil fuel reliant. In such cases, climate data can help assess the carbon footprint of companies and sectors within a portfolio. An investor can then analyze the extent to which a company will face future regulatory pressures, higher carbon taxes, or stranded assets as fossil fuels become less viable, and evaluate the efficacy of its current transition strategies.

3. Climate Scenario Analysis: Portfolio managers can conduct scenario analysis to validate how different climate pathways may impact the financial performance of companies. For instance, in a 2°C rise scenario, firms that are closer to a low-carbon economy, such as renewable energy-based ventures, may perform better, potentially rewarding those equity exposures. Such analysis can be key to understanding the positioning of a portfolio and developing energy transition pathways.

Read More: Role of Climate Data in Assessing Portfolio Risk

[esgdata1992]

Unlocking the Power of EU Taxonomy Data Solutions: A Comprehensive Guide

In the recent years, there has been a significant development made by the European Union towards sustainable finance, which is aimed at reducing the environmental damage caused by economic activities. Amongst the developments made, one such important component is the EU Taxonomy-a standard framework for defining environmental sustainable economic activities. This has led companies and investors increasingly to implement EU Taxonomy data solutions and tackle the complexities embedded within sustainable finance. This blog will focus on the data solutions of EU Taxonomy-in their importance, benefits, and how the expertise of Inrate can unlock the full capacity of sustainable finance.

What is the EU Taxonomy?

The EU Taxonomy is a classification by the European Union with respect to whether some economic activities are environmentally sustainable. The framework gives a common language and a set of criteria for the evaluation of environmental impacts across various sectors and types of activities. This categorization of the environmental objectives by the EU Taxonomy falls into four classes: Climate change mitigation Climate change adaptation Sustainable use and protection of water and marine resources Transition to a circular economy

Why are EU Taxonomy Data Solutions Important?

Data solutions will be important for EU taxonomy to companies and investors willing to have their portfolios aligned with EU sustainability goals. Identification of companies and activities eligible for EU Taxonomy alignment by an organization will help the organization, in turn, enhance its sustainability credentials by showing interest in environmentally sustainable activities, thus improving a company’s reputation and appeal to highly environment-conscious investors.

Minimize climate-related risks: EU Taxonomy data solutions enable organizations to identify and mitigate climate-related risks, thereby averting stranded assets or reputational loss.

Opportunity for new investments: The identification of sustainable activities allows investors to move ahead with future trends and opportunities in the low-carbon economy.

Support regulatory compliance: The provision of solutions from the EU Taxonomy enables companies to perform outstandingly in carrying out regulatory requirements, such as the EU’s Sustainable Finance Disclosure Regulation.

How Do EU Taxonomy Data Solutions Work?

EU Taxonomy data solutions primarily involve a thorough analysis of the company activities and their environmental implications. This entails; Data collection: Gathering relevant information concerning a company’s activities, which may include financial information regarding the operations, operational data, and sustainability metrics.

Evaluation: Verification of the collected data against the EU Taxonomy criteria with respect to the alignment-qualifying activities.

Reporting: Demonstrate the detailed firm’s reporting on the alignment with EU Taxonomy and recommend the change area

Inrate’s Solutions for EU Taxonomy Data Inrate has been one of the most innovative companies providing ESG data solutions, resulting in effective EU Taxonomy data solutions that help companies and investors cut through sustainable finance complexity. Inrate has such a long history of evaluating environmental impact that makes it perfectly align with regulators’ expectations.

Inrate’s EU Taxonomy data solutions are also :

Compliance data: Provide the company with required information for compliance — as the EU’s SFDR. ESG data: Integration of the broadest spectrum of ESG metrics to enable investors in the evaluation of the sustainable performance of companies Alignment with the EU Taxonomy: Identification of eligible companies and activities for alignment with the EU Taxonomy to enable organizations in enhancing the sustainability credentials. Benefits for Companies and Investors

Companies and investors can derive several benefits from using the EU Taxonomy data solutions by Inrate:

Streamline compliance: Simplify process of meeting regulatory requirements, reducing the burden on internal resources.

Improve sustainability performance: Identify areas of improvement and optimize sustainability strategies. Unlock new investment opportunities: In new trends and opportunities of a low-carbon economy.

Conclusion

EU Taxonomy data solutions are an integral part of sustainable finance, offering an opportunity for companies and investors to better explore the complex nuances of environmentally sustainable economic activities. Based on its experience in evaluating environmental impact, Inrate is the ideal partner that the organizations must now seek in order to fully exploit the potential of sustainable finance. 

With Inrate’s EU Taxonomy data solutions, companies and investors will be able to make optimal investments in their sustainability credentials and mitigate climate-related risks to unlock new investment opportunities.

[esgdata1992]

Innovative Approaches to Climate Impact Data Collection and Analysis

As the world grapples with the escalating impacts of climate change, the need for accurate and comprehensive Climate Impact Data has never been more critical. This data is essential for understanding the effects of climate change, informing policy decisions, and driving sustainable practices.

What is Climate Impact Data?

Climate Impact Data encompasses a wide range of information related to the effects of climate change on various aspects of the environment and society. This includes data on temperature changes, sea level rise, extreme weather events, and their impacts on ecosystems, human health, and economies.

The Role of Inrate’s Climate Impact Data Solutions

One valuable resource in this field is Inrate’s Climate Impact Data Solutions. Inrate provides detailed analysis and insights into how climate change affects different sectors and regions. By integrating environmental, social, and governance (ESG) factors, Inrate helps organizations and investors make informed decisions that promote sustainability and resilience.

Why is Climate Impact Data Important?

Informed Policy-Making: Reliable data is crucial for governments to develop effective climate policies and strategies that mitigate the adverse effects of climate change.

Risk Assessment and Management: Businesses and investors use climate impact data to assess risks and opportunities associated with climate change, enabling them to adapt and thrive in a changing environment.

Public Awareness and Engagement: Access to accurate data empowers communities and individuals to understand the impacts of climate change and take action to reduce their carbon footprint.

Challenges in Collecting Climate Impact Data

Despite its importance, collecting climate impact data presents several challenges. These include data gaps, inconsistencies, and the need for standardized methodologies. Collaborative efforts between governments, research institutions, and the private sector are essential to overcome these obstacles and ensure the availability of high-quality data.

Innovative Solutions for Climate Impact Analysis

Innovative technologies and methodologies are emerging to enhance the collection and analysis of climate impact data. Remote sensing, machine learning, and big data analytics are revolutionizing the way we monitor and understand climate change. These advancements enable more precise and timely data, facilitating better decision-making and more effective climate action.

Conclusion

Climate impact data is a powerful tool in the fight against climate change. By leveraging resources like Inrate’s Climate Impact Data Solutions, we can gain valuable insights into the effects of climate change and take informed actions to mitigate its impacts. As we strive for a sustainable future, the role of climate impact data will be pivotal in guiding our efforts and ensuring the resilience of our planet.