Deutsche Bank has created a new tool to identify the threats climate change poses to its investment portfolios worldwide.
It is working in partnership with climate intelligence advisory firm Four Twenty Seven, which has mapped the physical locations of more than one million corporate facilities globally and uses climate science models to assess the likelihood of them being affected by climate hazards.
The data shows how rising sea levels could affect coastal and offshore oil and gas infrastructure or how floods could disrupt supply chain.
That means exposure to catastrophic events for individual companies can now be calculated.
Nicolas Moreau, Head of Deutsche Asset Management said: “The availability of this new data on physical climate risk is a major step forward to addressing a serious and growing risk for investors.
“Climate risk is now centre stage, however, we believe the investment industry needs to champion the disclosure of annual and once-in-a-lifetime climate risks by companies. We have a duty to understand what more hurricanes or heatwaves mean valuations and investment returns.”