Climate intelligence predictions 2023: navigating climate risk

There is growing pressure to tackle the world’s interconnected vulnerability to an increasingly volatile climate. Policies need to be put in place, and industries and governments must adapt to achieve climate resilience. Climate intelligence (CI) informs these adaptive decisions.

Emphasizing the importance of navigating this challenge with a unified view of climate risk, our Founder and CEO, Iggy Bassi, shared his CI predictions for 2023 with SG Voice and Environment Analyst earlier this year. Read Iggy's three climate intelligence predictions below.

Caught in the crosshairs of economic losses due to accelerating climate events and changing regulations, organizations need new instruments and insights to help them not only keep pace, but create long-term competitive advantage. They will increasingly turn to climate intelligence as the key ingredient to help them navigate the complexities of achieving climate resilience. Equipped with CI, organizations can develop adaptation strategies to prevent future damage and disruption costs, strengthening supply chains, informing business strategy, improving business continuity and due diligence for future investments.

To date, business efforts to address climate change have been focused on decarbonization strategies. Reaching Net Zero will not protect an organization's assets from the physical impacts of extreme weather events, nor will it ensure a smooth material transition to a low-carbon future. To go beyond Net Zero targets and develop effective adaptation and mitigation strategies, decision-makers need a unified view of climate risk that encompasses physical and transition risk, incorporates carbon management, and attributes value to natural capital assets. Driven by the latest climate science and machine learning (ML), climate intelligence will increasingly make a unified view of climate risk available to decision makers.

As companies grow more accustomed to climate disclosure and reporting they will seek standardization in interpreting and understanding climate-related risk. Climate risk scoring from a single trusted source such as Cervest Ratings™ will make standardization possible.

Just like when someone applies for a credit card or a mortgage and all stakeholders can access their credit score, access to climate risk scoring will follow a similar process. Once organizations share the same standardized view of risk, the consequences of inaction become clear and help drive the business case for action prioritization, mitigation and driving behavioral change globally.

As our climate becomes increasingly volatile, so does the cost of inaction. Organizations must prioritize the implementation of CI and use it to climate-align decisions that protect their assets and future-proof their business by building climate resilience.

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