Quantify climate risk exposure and make strategic decisions across municipal portfolios by maturity, obligor or geographical boundary with ICE Climate Risk. Powered by risQ’s actionable climate data and municipal security-level reference data from ICE Data Services, ICE Climate Risk enables analysis and comparison from specific securities to entire portfolios.
The impact of climate risk
Climate-related events have traditionally been risk and catastrophe model inputs used by insurance companies since the early 1990s. With rising sea levels, increases in the frequency and destructive power of hurricanes, floods, droughts and wild fires, investors in the municipal finance sector increasingly desire a combination of catastrophe and climate change scientific data to add to risk models.
ICE Climate Risk applies geospatial climate, economic and demographic data to specific municipalities and securities. This new level of transparency allows municipal market participants to make informed investment decisions on recently issued bonds or securities that may have high climate risk exposure in an existing portfolio.
Heat Stress
Wildfire
Flood
Hurricane
Key benefits:
- Common financial metrics to aid in the comparison of climate hazards, locations and securities
- Breadth of municipal obligor coverage spans the 48 contiguous U.S. states
- Underlying demographic and socioeconomic data for obligors and surrounding areas providing valuable additional information for analysis
- Data can be provided in a file-based solution at the security level, allowing for integration into risk systems and other analytical tools or through a desktop user interface
- Downloadable visuals and the ability to easily generate custom reports
- Customized query capabilities, and saving of user-defined searches and templates
Use cases:
- Quantify climate risk exposure to help make strategic and operational decisions across their municipal portfolio by maturity, obligor or boundary, e.g. county, school district, city, utility, hospital system, port, charter school, etc.
- Use climate hazards data to identify Property Value at Risk, and GDP impairment risk, helping you to make informed credit risk and investment decisions
- Track climate risk projections by obligor over the life of the bond, by “Maturity” or “Price to Date”
risQ's Chief Commercial Officer (and PhD) Chris Hartshorn shares his thoughts on how investors are changing how they look at climate risk in the muni market. He also discusses the benefits the risQ and ICE Data Services collaboration will bring to investors.
Gain insight into how technology and data are driving new risk management techniques in our blog series.
How will climate impact the future of the $3.8 trillion municipal bond market? Chris Hartshorn, risQ’s Chief Commercial Officer, joined Josh and ICE Data Services President Lynn Martin to discuss the technology behind ICE Climate Risk.