Extreme weather and long-term climate shifts can damage assets and disrupt operations, causing cash flow volatility, reputational damage, and reduced shareholder value. Proactively managing these risks protects business continuity and long-term competitiveness. Strategic adaptation strengthens resilience and opens new avenues for value creation.

For Board Directors and Executive Management, it’s imperative to integrate climate change into strategic planning, operational processes, and capital allocation. However, existing analytics are often either too simplistic and unreliable, or overly complex and disconnected from business relevance.

What’s needed is a new generation of climate intelligence: Rigorous, relevant, and built for strategy.

Introducing the Climate Vulnerability Ranking

Delivered as a one-page report, the Climate Vulnerability Ranking provides a concise, board-ready overview of corporate exposure to physical climate risk, grounded in rigorous scenario analysis incorporating billions of climate simulations.

At the heart of the Ranking is a system that quantifies how many of a company’s physical assets are at elevated risk due to climate-driven hazards. This risk is assessed relative to industry peer group and across a universe of 13,000 global companies.

To generate the Ranking, RiskThinking.ai’s Climate Digital Twin (CDT™) platform conducts geo-specific analyses of over 6 million material physical assets these companies own and operate worldwide. Each asset is classified based on tail-risk exposure identified through multi-hazard stress testing, using the following four categories:

• Low Risk: Assets projected to have minimal exposure to physical climate hazards, with low potential for disruption to operations or value.
  
  
• At Risk: Assets projected to face moderate exposure to physical climate hazards, potentially requiring adaptation measures to maintain resilience.
  
  
• Stressed: Assets projected to face significant climate-related disruptions, likely requiring targeted adaptation strategies to preserve functionality and value.
  
  
• Stranded: Assets projected to face climate-related damages exceeding their replacement cost, rendering continued operation potentially more costly than beneficial without substantial adaptation efforts.

Companies are ranked according to the share of their physical assets classified as Stressed or Stranded due to climate-driven hazards. This methodology enables meaningful comparisons across firms of varying sizes and highlights the relative intensity of exposure both within and across industry peer groups.

The Rankings are provided as a global index of corporate physical risk, with each company’s position reflecting its relative standing among the CDT’s company universe. Using our platform, users can customize and re-index the rankings by global industry sectors, market indices, headquarters country, or any combination of filters relevant to portfolio construction or risk assessment.

Create a Custom Report

Download and complete the Sample Form below to create a custom Climate Vulnerability Ranking at no-cost. For all other inquiries, get in touch at cdt@riskthinking.ai