How asset managers can use EarthScan: integrating climate risk into due diligence workflows

Businesses – asset managers especially – need on-demand climate risk assessments, screening, and reporting, helping to ensure investor return on investment (ROI). With current extreme climate hazards becoming more frequent, asset managers need to have a thorough knowledge of risks that might impact their portfolio – that’s where EarthScan™ can help, discovering physical risk across numerous assets quickly and powering effective climate action.

Why do asset managers need climate intelligence (CI)? Accessing asset-level climate intelligence is key for managers and their due diligence workflows because it provides comprehensive insights and actionable climate risk insight. The insights can help managers to discover climate risks and opportunities, inform adaptation and mitigation measures including asset retirement, (re)location, retrofit and replacement decisions. Ultimately, building operational resilience and ensuring investor ROI.

Leaders can discover risks spanning three IPCC-aligned emission scenarios, get information over an extensive timeline (1970-2100; in five-year timesteps), across both acute and chronic climate risks, such as flooding, drought and heat stress. And importantly, single-out vulnerable portfolio assets that require immediate action to mitigate climate risk by using our globally comparable Cervest Ratings™. Customers can browse an ever-expanding library of over 500 million assets – or upload their own via .CSV – as they look to acquire new assets and portfolios.

Asset management companies can integrate company-wide, climate intel, and get the information needed for climate reporting requirements by using EarthScan’s ground-breaking technology.

Integration

Through Cervest, asset managers can gather climate intelligence across the entire company, screening risks and opportunities for pre-transaction and existing assets, portfolios, and supply chains – to best inform ESG and climate risk reports, review investments (ROI), build resilience, and aid portfolio climate risk decision-making. ESG, Risk and Asset Managers can demonstrate the financial impact of an asset’s climate exposure over time with asset-level Climate Value at Risk insights (CVaR) and plan adaptation and mitigation measures over the whole portfolio and supply chain – ultimately, sharing the data with stakeholders.

Reporting

Using EarthScan’s cutting-edge technology, it’s possible to report to shareholders, stakeholders, and investors on climate risks and opportunities, and use data to inform the overall sustainability strategy, in line with regulations. Asset managers can access climate intelligence for due diligence and ESG reporting in accordance with the Task Force on Climate-related Financial Disclosures (TCFD) and EU Taxonomy.

Our insights can be the base for climate risk communications across the board – ensuring investors and shareholders are updated on all assets across the portfolio. Managers can also use EarthScan as an educational product, upskilling companies and teams, and broadening their understanding of the climate risk landscape, screening, and reporting requirements.

EarthScan helps to put climate intelligence at the heart of due diligence, enabling climate-intelligent decisions and actions – pre- and post-transaction. Our innovative, science-backed climate intelligence product supports asset managers, helping them with reporting, when making climate-aligned acquisitions, building-out resilient adaptation measures, and ensuring future ROI.

Download our ebook, Why you need climate intelligence in your 2023 ESG budget, to find out more about the ROI of climate intelligence