The financial sector has a central role to play in assessing and managing climate-related risks. To do so, many financial institutions are working with third party providers to obtain the climate skills, information, and outputs they require.

Given the growing number of climate risk tools and providers, UNEP FI has developed resources to inform financial institutions on the structure, coverage, and methodologies of commonly used tools. This report includes detailed case studies from 15 financial institutions which:

  • Give financial institutions insights into the process, challenges, and outputs related to using selected climate risk tools,
  • Make suggestions to tool providers on where their services could benefit from additional components,
  • Highlight to supervisory authorities and regulators current tool applicability, possible gaps and ways forward in the near future.

This report is a supplement to The Climate Risk Landscape published in 2021 which mapped climate-related financial risk assessment methodologies. The landscape review summarized key developments across third party climate risk assessment providers. Together, the two reports provide financial institutions with resources for understanding both the theoretical as well as the practical attributes of different tools.

Climate Risk Dashboard

In June 2024, UNEP FI’s Climate Risk and TCFD Programme updated the Climate Risk Tool Dashboard, further supporting financial institutions in navigating the constantly evolving universe of climate risk tools. This database aims at enhancing climate risk tools readability by providing a comprehensive overview of more than 40 tools’ features, metrics, methodology, assumptions, and common use cases. It includes extensive information on tools’ features, alignment with sustainability-related disclosure standards or regulations, policies around data quality and sourcing, and more.