Companies enter strategic partnership to explore climate financial risk modeling
NEW YORK – April 20, 2022 – Bloomberg today announced an equity investment in leading climate financial risk data analytics provider, riskthinking.AI. The companies have also established a strategic partnership to explore the use of advanced technologies and risk modeling techniques to accelerate a deeper view into climate-related impacts on the financial system.
This investment comes at a critical time, as emerging regulations and investor pressure push financial institutions to better identify, assess and manage climate risks. This increases the demand for standard scenarios and granular data to assess the potential impacts of both physical and transition risk drivers, develop climate-specific stress-testing and improve the climate sensitivity and resilience of investment portfolios.
Until now, credible and complete data on climate risk factors for potential investors has been lacking—along with universal standards for measuring potential financial risk—leading to the use of deterministic rules in a stochastic environment. riskthinking.AI differs from traditional climate risk companies by enabling companies of all types to use consistent, science-based, and methodologically rigorous models to comprehensively measure and manage climate financial risks, in a way that helps companies become audit-ready. This is powered by an extensive, continuously updated data series of climate risk, which riskthinking.AI uses to stochastically model and price financial risks across any assets, equities, corporates, industries, and sectors, anywhere in the world.
Dr. Ron Dembo, CEO and Founder, riskthinking.AI, said: “It is of critical importance to make sure assets are valued appropriately on the financial markets. Current climate financial risk assessment lacks crucial, universal metrics including environmental, political, social and carbon factors for each specific geographic location and relevant asset type. We expect that this partnership with Bloomberg will have a profound effect on future assessment of climate financial risk moving forward.”
Ben Macdonald, Global Head of Enterprise Product, Bloomberg, said: “As investment managers look to understand the impact of climate risk in their portfolios, ready availability of high-quality data is the most critical factor, and also a significant challenge. Bloomberg is committed to improving access to these data and helping managers adopt sensible protocols for modeling, measuring and managing climate risk.”
riskthinking.AI is a visionary data analytics provider for assessing climate-based financial risk. Designed for global financial institutions, assessment firms, and custodial banks, riskthinking.AI provides the most comprehensive climate risk analysis currently available, based on hard science and mathematics. Anchored by founder Dr. Ron Dembo’s 40-year experience in algorithmic modeling, riskthinking.ai applies sophisticated stochastic prediction models to comprehensive climate data to help financial institutions apply climate risk ratings to investment assets, vehicles and portfolios for clients to make informed investment decisions about the future. Visit at www.riskthinking.ai
Bloomberg, the global business and financial information and news leader, gives influential decision makers a critical edge by connecting them to a dynamic network of information, people and ideas. The company’s strength – delivering data, news and analytics through innovative technology, quickly and accurately – is at the core of the Bloomberg Terminal. Bloomberg’s enterprise solutions build on the company’s core strength: utilizing technology to enable customers to access, integrate, distribute and manage data and information across organizations more efficiently and effectively. For more information, visit www.bloomberg.com or request a demo.