Climate Risk
Classification Standard (CRCS)™

An emerging global standard designed to provide a consistent and transparent methodology for classifying transition and physical risk related to climate change.

Until now, there has been no viable, comprehensive, nor accurate way to determine and evaluate the financial risk associated with climate change. In part, due to a lack of consistency between taxonomies, methodologies and even approaches of how to collect, align and manage climate risk data. This has predominantly been the case due to the non-existence of universal standards, tools and practices that pragmatically connect financial engineering with peer-reviewed climate science. RiskThinking.AI has meticulously crafted and fused the critical algorithmic process to articulate and confidently navigate this nebulous domain – through the forging of a remarkable, decisive and vital management framework.

Clear and relevant universal standards are essential to synthesize the hundreds of thousands of data sets in existence, and those continuing to emerge globally. To address this critical global void head-on RiskThinking AI is officially making its Climate Risk Classification Standard (CRCS) readily available to the world.

 

In doing so, the release of the CRCS enables the global financial community to dexterously manoeuvre the financial risks associated with climate issues. As the CRCS is a highly functional, adaptable, living program that incorporates and clarifies an enormous spectrum of variables related to climate risks. It provides unification of the most relevant elements of climate risks to help best understand and work with transitions, legal policy frameworks, greenhouse gases, social and physical risks and more.

It does this in a consistent, science-based and reproducible manner. It is a globally comprehensive ontology of risk that has been codified and is transparent and fully audit-able. It is now openly available to help organizations and institutions best align data, build climate related risk models and to conduct structured analysis for identifying the financial exposure and impacts of climate change.

 

RiskThinking.AI solves the problem of making divergent climate and economic data useful, easy to distribute and readily audit-able. Our data and analytics platform, ClimateWisdom(™), offers institutions with data that they wish to open source, as well as a free platform for storing, aligning and delivering usable data. For proprietary data, we offer these same services with a royalty fee made available to the data owner. For more information on the CRCS please contact us

Key Features of the CRCS Methodology

Uniform

CRCS offers objectively defined categories of climate risk that are spatially, categorically, and physically-consistent, enabling the design and execution of effective risk management and portfolio strategies.

Standardized

The CRCS structure is a robust climate risk taxonomy that standardises measures of risk factors and their associated impacts.

Regulator-Ready

CRCS is underpinned by the world’s leading climate science and macro-economic data, which is further refined through expert analysis and a rigorous structured expert  judgment protocol. Virtually every data point is linked to its source, which ensures auditability and replicability.

Scalable

The CRCS structure enables analysis and comparison of risks facing individual assets, as well as asset class, group of assets and/or GICS groupings at local, regional and global scales (resolutions down to 0.5 sq meter may be achieved).