EY Climate Analytics Platform

Your business challenge

Organizations’ assets, operations and supply chains are faced with ever-increasing physical and transition risks due to climate change. To support business continuity and compliance, organizations should equip themselves to:

• Meet regulatory and market requirements (Task Force on Climate-Related Financial Disclosures (TCFD), CDP and the European Union Green Taxonomy)
• Assess climate-related risks and corresponding vulnerability
• Futureproof operations and ensure resilience of supply chain networks

Solution benefits

EY Climate Analytics Platform (EY CAP) can assist organizations in steering their business strategy, streamlining risks and meeting regulatory requirements in light of climate change by providing:

• On-demand integrated physical and transition climate-related risk reporting, analyzeand disclosure
• Instantaneous analysis and comprehensive coverage of hazards, time horizons, scenarios and geographies
• Alignment with reporting and disclosure of regulatory requirements and leading industry standards

Climate risk analysis and TCFD alignment

EY CAP supports your assessment of climate-related risks, in line with TCFD recommendations. It helps understand impacts of physical and transition climate-related risks on your business model and operations.

Solution features & functionality

EY CAP is an innovative online, easy-to-use, academic-grade, forward-looking solution that:

• Enables the assessment of both physical and transition risks
• Relies on recognized IPCC climate scenarios
• Provides forward-looking risk assessments up to 2100
• Covers all geographies with granular spatial resolution
• Covers direct operations as well as upstream supply chains
• Matches requirements from regulatory frameworks and markets standards

Why EY

FAQs

What business issues is EY CAP meeting?

Organizations’ assets, operations and supply chains are faced with ever-increasing physical and transition risks due to climate change. To support business continuity and compliance, organizations should equip themselves to:

• Meet regulatory and market requirements (ex CDP, Task Force on Climate Related Financial Disclosures (TCFD), EU Green Taxonomy, etc.)
• Assess climate-related risks and corresponding vulnerability 
• Future-proof operations and ensure resilience of supply chain networks

What does EY CAP do?

EY CAP can assist you in steering your business strategy, streamlining your risks and meeting regulatory requirements in light of climate change thanks to: 

• An exposure and vulnerability analysis for physical risks 
• An assessment of exposure to transition risks
• Assets, regions or transportation segments analysis for multiple time horizons and climate scenarios: asset value evolution for financial reporting and transaction teams; product portfolio reorientation and global business transformation; and supply chain reorganization

What are the EY CAP outputs?

EY CAP analysis provides climate-related risk information to inform the business strategy through two different outputs:

• A csv file containing physical and transition risks indicators for every asset, scenario and time horizon available in the tool
• A PDF report by asset that details the most material impacts by risk profile

Which countries are available in EY CAP?

The spatial coverage depends on the type of risk:

• For physical risks, EY CAP covers all geographies
• For transition risks, the coverage will soon be global but as of now, only France, Germany, USA, China, UK and the Netherlands, plus rest-of-European-Union and rest-of-the-world are covered

Which time horizons are covered?

Different time horizons have been defined by means of 30-year or 20-year timeframes following literature best practice. 

• Historical period (1976–2005/1980–2005 depending on the model)
• 2030, 2035, 2040, 2050
• 2085 (only available for the physical risk module) 

The time horizons are not customizable directly in the tool. Additional time horizons may be added through additional tool development.

What is the spatial resolution of the data available in EY CAP?

For physical risks, the spatial resolution depends on the data source:

• For CORDEX based indicators, the spatial resolution will vary between 11x11km and 44kmx44km depending on geography
• For Aqueduct indicators, spatial resolution is 1kmx1km 
• For transition risks, as mentioned, the data is provided at country level.

What climate databases does the tool rely on?

EY CAP is underpinned by climate projections sourced from reliable climate models participating in the CORDEX initiative, that combines global and regional models. Projections are obtained by selecting outputs for multiple IPCC experiments and scenarios:

• RCP2.6: “lowest emissions” scenario, corresponding to 0.0–2.3°C of global warming by 2100
• RCP4.5: intermediate scenario (1.7–3.2°C)
• RCP8.5: worst-case scenario (3.2–5.4°C) 

A few other indicators come from external databases (Aqueduct global platform for water stress, coastal and riverine flooding, the CATNAT platform for Natural Disasters).

Regarding physical risks, does EY CAP only analyze asset level risks?

EY CAP can be used in a variety of situations for physical risk analysis. It can cover exposure and vulnerability assessment for:

• A specific site or an asset 
• An area or region (e.g., crop fields, territory)
• Suppliers’ or clients’ sites 
• Transport infrastructure and segment