Measuring what matters: a new approach to assessing sovereign climate risk

Increasingly severe climate conditions impose growing pressure on populations and economies around the world. The implications on economic growth, welfare, production, labor, and productivity are large, with potential material impacts on sovereign credit risk. To date there has been no granular, globally comparable assessment mapping physical climate risk exposure to the most economically productive and populated areas of a country. Four Twenty Seven’s new sovereign climate risk data provides detailed analytics that focus on key risk drivers for countries, measuring the amount of agriculture area, future population, and future GDP (PPP) exposed to climate hazards. This new climate risk data can help deepen the understanding of sovereign and country climate risk for investors and credit institutions. It can also be used to identify areas most in need of adaptation finance and to prioritize resilience investments