Overview

This tool is an interactive climate financial risk and scenario analysis platform developed to support the assessment of climate-related risks in finance. Its primary purpose is to help users explore transition and physical climate risk pathways and their potential financial implications. It is relevant to finance professionals involved in climate risk analysis, stress testing, and strategic planning.

Organisation behind the tool

The tool is developed and maintained by the UK Centre for Greening Finance and Investment (CGFI). CGFI is a UK-based research and innovation centre focused on improving the use of climate and environmental data within financial decision-making. The work aligns with broader UK efforts to support climate risk assessment in financial markets, including collaboration with academic institutions, regulators, and industry stakeholders.

What the tool does

The tool provides functionality to explore climate-related financial risks using scenario-based analysis. Key features include:

• Visualisation of climate transition and physical risk scenarios.
• Exploration of different climate pathways and time horizons.
• Assessment of potential impacts on financial assets or portfolios at an aggregate level.
• Support for climate stress testing and high-level risk comparison.
• Interactive interface designed for analytical and research use.

The platform is primarily exploratory and analytical, focusing on scenario comparison rather than asset-level valuation or transactional data.

Target audience

The primary intended users are finance professionals, including:

• Risk managers and analysts in banks, insurers, and asset managers.
• Sustainability and climate risk teams within financial institutions.

Other relevant audiences may include:

• Academic researchers working on climate finance.
• Policymakers and regulators interested in climate risk frameworks.
• Analysts supporting climate-related financial disclosures.

Relevance to finance professionals

For finance professionals, the tool can be applied in several practical contexts:

Risk assessment

• Supports understanding of exposure to climate transition and physical risks under different scenarios.
• Useful for high-level stress testing and scenario comparison.

ESG analysis

• Provides climate-related insights that can inform environmental risk considerations.
• Can support internal ESG risk frameworks and qualitative reporting.

Market and sector insights

• Helps assess how different climate pathways may affect economic and financial systems over time.
• Relevant for sectors sensitive to climate policy and physical climate impacts.

Investment context

• Supports long-term strategic thinking around climate-related financial risks.
• Can be used as an input into portfolio resilience analysis and climate scenario narratives.

The tool is best suited for strategic and analytical use rather than operational risk modelling or regulatory reporting on its own.