The Linux Foundation’s OS-Climate, a non-profit organisation providing open-source data and software tools to help a shift to climate-aligned finance and investing, last week released for public collaboration three analytical tools aimed at supporting climate action.
The three tools – Physical Risk & Resilience, Portfolio Alignment and Transition Analysis – were developed cooperatively by OS-Climate members, led by BNP Paribas, Allianz and Airbus, respectively.
The tools will use the OS-Climate Data Commons, which will act as a public utility of corporate and other climate data. Launched at COP26 last year, the data commons is aimed at addressing the financial community’s urgent need for transparent, consistent and interoperable climate-relevant data.
Using asset vulnerability models that aim to forecast the probability and severity of extreme climate events, the Physical Risk & Resilience Tool enables financial and non-financial stakeholders to identify and quantify risk related to climate resilience.
The Climate Portfolio Alignment Tool helps financial stakeholders to align portfolios at individual holdings and loan levels with the Paris Agreement target of limiting global temperature rise to 1.5°C.
Finally, the Transition Analysis Tool will enable companies to model, test and conduct scenario analysis for climate-aligned strategic decisions. This is aimed at accelerating the transition of the real economy towards net zero and greater resilience through climate-aligned investments in R&D, capital projects, supply chains and other infrastructure.
OS-Climate’s financial services sector, technology sector, financial data and ‘real economy’ corporate members also include Amazon, BNY Mellon, EY, Federated Hermes, Goldman Sachs, the London Stock Exchange Group, Microsoft, the UN-convened Net-Zero Asset Owner Alliance (with $10.6trn of assets under management), Ortec Finance, Red Hat and S&P Global.