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    1. Home
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    3. Climate Modeling & Risk

    Climate Modeling & Risk terms

    Projections, attribution and the pricing of physical climate risk.

    Latest coverage of this topic All glossary
    Climate model downscaling Converting coarse global climate model output into finer-resolution projections usable for a specific region or site. Climate scenario analysis Modeling how different future climate and policy pathways would affect an organization's assets, costs or strategy. Climate value-at-risk (climate VaR) An estimate of how much climate change and the transition to low carbon could reduce the value of a portfolio. Physical climate risk The risk to assets, operations or people from climate-related physical hazards, both sudden events and long-term shifts. Reanalysis data A consistent, gridded historical weather record built by rerunning a modern forecast model over past observations. Shared socioeconomic pathways (SSPs) A set of standardized scenarios describing possible future global development paths, used to frame climate projections. Transition risk The financial risk to a business from the policy, market and technology shifts of moving to a lower-carbon economy.

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