Connect to a more sustainable future
Understand the impact of physical and transition climate risk on fixed income and equity securities
Access more meaningful climate metrics
Understand the risk of climate hazards such as heat stress, wildfire, flooding, hurricane and drought on specific U.S. municipalities, mortgage-backed security pools, and related fixed income securities with our geospatial climate data. To allow for ease of comparison, scores are available. This transparency can help U.S. municipal and mortgage-backed security market participants make informed decisions on bonds or securities that may have high climate risk exposure.
Make the connection between physical climate risk, social impact investing, and geospatial modelling with the ICE ESG Geo-Analyzer. An on-demand module for assessing the potential climate risk and social impact for any user-provided location.
Identify, measure and understand climate transition factors within portfolios and loan books. The ICE Climate Transition Analytics tool integrates climate data and science-aligned analytics at a company, sector and portfolio level. Designed by climate risk specialists, the module allows asset owners, asset managers, banks, investors and companies to identify, measure and understand their climate risks and opportunities.
Emissions and Targets Data can help companies and financial institutions understand the climate risk landscape, meet regulatory requirements and capitalize on climate-related opportunities.
Insights
Climate Risks - Beyond the Physical
The mention of ‘Climate Risk’ inevitably turns our thoughts to dramatic weather events such as floods, storms, hurricanes as well as drought and forest fires (“Physical Climate Risk”). These often-devastating Physical Climate Risk events grab the media’s attention and are widely reported. However, there is another kind of Climate Risk which is much less discussed and not as widely covered in the mainstream media, despite the potential for it to impact every part of daily life: Climate Transition Risk.
The U.S. municipal bond market does not price in physical climate risk … Yet
As concern about climate risk disclosure grows, an analysis of ~800,000 U.S. municipal bonds representing over $2.5T in outstanding debt shows no evidence it is being systematically priced in.
Climate risk and U.S. fixed income fundamentals
We used our data to look at how property values, population growth and mortgage delinquency correlated with higher climate risks.
Wildfires, housing affordability and climate change: virtuous cycle or dangerous dynamic?
Catastrophic wildfires are expected to be ~15% more likely across the U.S. by 2060, assuming a business-as-usual carbon emissions trajectory in the coming decades, which would increase annual average economic damage from wildfires by ~8%.
Climate Risks - Beyond the Physical
The mention of ‘Climate Risk’ inevitably turns our thoughts to dramatic weather events such as floods, storms, hurricanes as well as drought and forest fires (“Physical Climate Risk”). These often-devastating Physical Climate Risk events grab the media’s attention and are widely reported. However, there is another kind of Climate Risk which is much less discussed and not as widely covered in the mainstream media, despite the potential for it to impact every part of daily life: Climate Transition Risk.
The U.S. municipal bond market does not price in physical climate risk … Yet
As concern about climate risk disclosure grows, an analysis of ~800,000 U.S. municipal bonds representing over $2.5T in outstanding debt shows no evidence it is being systematically priced in.
Climate risk and U.S. fixed income fundamentals
We used our data to look at how property values, population growth and mortgage delinquency correlated with higher climate risks.
Wildfires, housing affordability and climate change: virtuous cycle or dangerous dynamic?
Catastrophic wildfires are expected to be ~15% more likely across the U.S. by 2060, assuming a business-as-usual carbon emissions trajectory in the coming decades, which would increase annual average economic damage from wildfires by ~8%.