Calculating Climate Risk

Carbon Risk, the web application developed by Novethic, explains the economic and financial consequences of climate change. It draws on information compiled from several databases concerning the climate policies and strategies of national governments, investors and businesses. More than 58,000 pieces of data from 14 different sources were compiled and analyzed to create Carbon Risk. The app is regularly updated.

Financial actors can benefit in many ways from this app. CarbonRisk allows them to:

  • Analyze transparently worldwide carbon emissions.
  • assess how serious companies are committed to tackle climate change.
  • Identify effectively the quantity of fossil fuel that has to be kept in the ground to reach the 2°C target.
  • Benchmark their efforts with other financial actors.


Display Carbon Risk in full screen

CARBONRISK METHODOLOGY

The web application consists of four sections:

RECORDS

RECORDS

In this section, users can get a general overview of the quantity of fossil fuel burnt in the world per country each year. For a more precise analysis, there are specific filters that show the results for each energy source (coal, oil, gas) and emission sector (electricity, heating/manufacturing industry/transport/other fossil fuels).

TARGETS

TARGETS

This section shows the amount of fossil fuel that needs to be kept in the group to adhere to the 2°C objective. The users can distinguish between different energy sources (coal, oil, gas). Furthermore, they can compare the quantity of fossil fuels emitted in different parts of the world with a regional and global focus. For instance, for coal reserves in North America, 90 % of the coal reserves in this region have to remain untouched. This represents about 24 % of global coal reserves that need to be kept in the ground. This section helps investors to visualize the potential risks of stranded assets for different fossil fuel investments.

INVESTORS

INVESTORS

This map details how investors are taking action. Users can identify and filter different types of investors (insurance company, pension fund, etc.) according to size and forms of action (Green Investment, Divestment, Shareholder Engagement, Carbon Footprint).

COMPANIES

COMPANIES

This map shows how companies are taking action in their business activities (for instance reduction of carbon emissions, green investments, etc.). The map focuses on the largest stock-listed companies in the main countries.