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Get ready for climate
regulations.

Image courtesy of Edward Burtynsky.

what we do

WE HELP BUSINESS LEADERS MANAGE THE FUTURE FINANCIAL IMPACT OF CLIMATE CHANGE.

Climate change is, by nature, a problem of extreme complexity. We know the climate is changing, but we can’t be sure what this means for the planet, for us or for our businesses.

To solve this problem, the right data and analyses are critical. We arm leaders with the essentials for a successful business strategy

ESSENTIAL #1:

Stochastic climate financial risk data world-wide

ESSENTIAL #2:

Physical data on counterparties and supply chain

ESSENTIAL #3:

Transition risk and physical risk integrated

ESSENTIAL #4:

Multifactor stress testing

ESSENTIAL #5:

Integrated back-testing

Learn more about our solutions
 

FINDING RELIABLE CLIMATE FINANCIAL RISK DATA

To guide business strategy, it’s essential to understand that climate financial risk data must take account of the radical uncertainty of climate change.

This data must include probability distributions that represent:

  • every risk factor (sea-level rise, heat stress, hurricanes, extreme precipitation and more)
  • in relevant business geographies across the entire surface of the planet
  • from now until the end of the century.

Achieving this level of data, and maintaining it over time, is a Herculean task. Yet it’s vital if we want to measure future climate risk with any accuracy.

Riskthinking.AI is one of the few companies to offer this level of granular data.

Our VELO® climate data platform is the only available platform to offer probabilistic (stochastic) analysis of climate financial risk.

Our data derives from climate science, mathematical models, scientists’ views and climate models – all of which evolve constantly.

It is constructed around every single physical and transition risk variable needed to conduct climate risk assessments – at any future period.

UNCOVERING THE PHYSICAL NATURE OF COMPANIES

The climate risk of every asset depends on its location and function. The toughest data challenge facing banks, insurance and other companies is the physical nature and location of their and their counterparties’ assets. For most, these assets are geographically dispersed.

To accurately measure climate financial risk, this data needs to be sourced, continuously updated, and aligned geospatially and temporally.

Even the biggest and best data providers struggle with it. This is where riskthinking.AI shines.

Our VELO® assets database contains the physical assets of over 200,000 companies, most of which represent the equity indices of the world’s major financial markets.

VELO® is the first platform on the market to decipher the complex physical structure of counterparties’ assets. It contains information on asset type, emissions, financial data, global ownership structure, location, building size and more.

INTEGRATING TRANSITION RISK

Most market-ready climate financial risk solutions treat physical and transition risk as separate entities.

Yet physical and transition risk are intimately linked.

The physical assets of counterparties change over time. A shift in company strategy will influence the future physical nature of every single asset. It follows that the physical nature of a company is closely linked to the transitions it undergoes – and its future is inherently uncertain.

This means data must consider every imaginable future transition – due to strategy, technology, politics and more – and take account of the resulting benefits and cost.

At riskthinking.AI we integrate all risks – physical and transition – and apply our patented algorithm to stress test a dynamically changing portfolio of physical assets.

Multifactor stress testing

Most assets, when affected by climate, are likely to be influenced by multiple risk factors.
This means climate financial stress testing requires a range of multifactor stress scenarios.

We have developed and patented a multifactor stress testing algorithm that is driven by empirical data and is consistent with the uncertainty data we collect.

Using this algorithm, we can generate stress tests that combine multiple, distinct risk factors such as strategy, technology, political, transition and physical risk, among others.

This gives riskthinking.AI one of the world’s most advanced tools for modelling real-world climate financial risk situations.

INTEGRATED BACK-TESTING

We test the behavior of our ‘uncertain future data’ models against their analysis of actual extreme events. After all, risk management is largely about low probability, high impact events (the tail risk).

To do this we back-test the validity of our stochastic data by observing how it uncovers “black swans” before they occur.

Our stochastic approach has captured over 90% of record-setting extreme weather events and 100% of carbon price changes in 2022.

Solutions

Data
Data

Curate the data to meet your needs by selecting from our integrated catalogue of climate risk and physical asset data, which may be delivered via secure file transfer (SFTP) or secure API.

VELO® DATA
Products
Products

Explore climate risk data and analytics via simple, fast, and low-cost web applications. Our products cover various use-cases, including disclosures, equity research, and more.

VELO® PRODUCTS
Enterprise
Enterprise

VELO® Enterprise enables customized data feeds and software components, system integration, the ability to upload proprietary data and the creation of custom climate risk models.

VELO® ENTERPRISE

partners

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Team

Our management team brings expertise spanning climate science, data science, financial engineering, and software engineering.

RON DEMBO, PhD

RON DEMBO, PhD CEO

DILSHAN KATHRIARACHCHI

DILSHAN KATHRIARACHCHI CTO

JULIE BATTEN

JULIE BATTEN COO

EITAN LEVITT

EITAN LEVITT CPO

ANDREW WIEBE

ANDREW WIEBE CSO

JOHN WHITE

JOHN WHITE Managing Director, EMEA

We are privileged to have the guidance of our active board directors and board advisors, who bring their experience leading central banks, global financial institutions, and preeminent technology companies.

Board Directors

David Dodge

David Dodge Former Governor of the Bank of Canada

Chris Hadfield

Chris Hadfield Former Commander of the International Space Station

Anatol Von Hahn

Anatol Von Hahn Former Head of Scotiabank Canada

Lucien Foster

Lucien Foster Corporate Strategy Executive at Bloomberg LP

Board Advisors

Andy Chisholm

Andy Chisholm Board Member at the Royal Bank of Canada; Former Partner at Goldman Sachs

Mark Hughes

Mark Hughes Board Member at UBS; Former Chief Risk Officer at the Royal Bank of Canada

Darius Nassiry

Darius Nassiry Practice Leader, Resilience and Sustainability at WSP

Andrew Zolli

Andrew Zolli Chief Impact Officer at Planet

Aimée Christensen

Aimée Christensen Climate & Sustainability Consultant, formerly Google, U.S. Department of Energy, and The White House

Stacy A. Swann

Stacy A. Swann CEO of Climate Finance Advisors, WSP & MCGB Board Director, and Adjunct Professor, Johns Hopkins

Yaacov Mutnikas

Yaacov Mutnikas Senior Advisor, Market Intelligence & Data Science, S&P Global. Former Chief, S&P Global, IHS Markit, Bank of England, Algorithmics

Resources

Get in touch to learn more

NORTH AMERICA
Corporate Head Office

392 Markham Street
Toronto, Ontario, M6G 2K9
General: (416) 968-0996

Paul Cushman
VP of Sales, North America
415-672-0677

EMEA
Floor 1, Sackville House
143-149 Fenchurch Street
London, EC3M 6BL, UK

John White
Managing Director, EMEA
+44 (0) 7780 003337