Weather and climate risk assessment
Weather and climate risks can vary significantly between regions and seasons. Detailed analyses using high-resolution weather and climate data in combination with company-specific information allow us to quantify your individual weather and climate risk.
Various financial indicators, such as Value at Risk (VaR), are used to determine the weather and climate risk. VaR is a risk measure that represents the maximum expected loss over a given period of time for a given level of confidence (e. g. 95 %).
In strategic planning processes of your company, it is recommendable to take into account the expected climate-induced changes in demand or supply of your products and services. This applies in particular to long-term investment decisions. Early adaptation to climate change offers competitive advantages.
WEDDA-4CPI (WEDDA® for climate proof investment) evaluates your investment options taking into account the associated climate opportunities and risks. Regional climate scenarios and/or snow simulations are used to estimate the impact on the demand for your products and services. These are taken into account in profitability assessments of your investment options.