Physical Climate Risk Metrics (PCRM)

Morningstar Sustainalytics’ Physical Climate Risk Metrics provide investors with forward-looking scenario analysis on a company’s exposure to direct and indirect physical climate risks.

The physical impacts of climate change are challenging investors, both due to physical damages and disruptions, and evolving marketplace expectations. By 2050, physical climate risk could reduce GDP by up to 25% in some regions. Evolving regulatory requirements and disclosure expectations, like the Task Force on Climate-related Financial Disclosures (TCFD), will require investors to integrate transition and physical<br/>climate risks into their decision-making and disclosures.

Physical Climate Risk Metrics offer a bottom-up assessment of physical climate risks from eight physical hazards, spanning 12 million assets and covering 135 sectors and 235 countries. Investors can understand their direct and indirect exposure to physical climate risks and the potential financial impacts to their portfolio companies. To create these metrics, Sustainalytics collaborated with XDI, an award-winning global leader in physical climate risk analysis on companies and their assets

Tables Included:

- PCRM_Benchmarking_vX_YYYYMMDD_SAMPLE
- PCRM_Country_vX_YYYYMMDD_SAMPLE
- PCRM_Exposure_and_Loss_vX_YYYYMMDD_SAMPLE
- PCRM_Hazard_vX_YYYYMMDD_SAMPLE
- PCRM_Loss_Time_Series_vX_YYYYMMDD_SAMPLE

Sample Fields:

- Scenario Code (Benchmarking)
- Physical Impact Year (Benchmarking)
- Overall High Risk Assets Percentage
- Overall Percentile High Risk Assets
- Overall Category Regional Risk
- Overall Percentile Local Critical Infrastructure Risk