The Linux Foundation’s OS-Climate, a non-profit organization providing data and open-source software tools to help move towards climate-aligned finance and investing, released last week for a public collaboration three analytical tools to support climate action.
The three tools – Physical Risk & Resilience, Portfolio Alignment and Transition Analysis – were developed in cooperation by members of OS-Climate, led respectively by BNP Paribas, Allianz and Airbus.
The tools will use OS-Climate Data Commons, which will act as a public service for corporate and other climate data. Launched at COP26 last year, the data commons aims to address the financial community’s urgent need for transparent, consistent and interoperable climate data.
Using asset vulnerability models that aim to predict the likelihood and severity of extreme weather events, the Physical Risk and Resilience Tool enables financial and non-financial actors to identify and quantify resilience-related risks climatic.
The Climate Portfolio Alignment Tool helps financial actors align portfolios at the individual asset and loan level with the Paris Agreement goal of limiting global temperature rise to 1.5°C.
Finally, the Transition Analysis Tool will allow companies to model, test and conduct scenario analyzes for climate-aligned strategic decisions. This aims to accelerate the real economy’s transition to a net-zero economy and greater resilience through climate-aligned investments in R&D, investment projects, supply chains and other infrastructure.
Financial services sector, technology sector, financial data and corporate members of the “real economy” of OS-Climate also include Amazon, BNY Mellon, EY, Federated Hermes, Goldman Sachs, London Stock Exchange Group, Microsoft, the Net-Zero Asset Owner Alliance (with $10.6 billion in assets under management), Ortec Finance, Red Hat and S&P Global.