Smart Climate® Data Solutions

Smart Climate Data Solutions provides security level performance and risk data under multiple climate scenarios.

Smart Climate Data Solutions: Data Subscription

Smart Climate Data projects a security’s performance and risk under multiple climate pathways.

Our data uses climate scenario signals from a global climate model to determine climate risk exposures for individual securities. The Smart Climate methodology predicts the total return on securities for up to two years, using multiple future climate scenarios, then computes the variance among these returns as a climate risk indicator.

Smart Climate Data Key Features

The transition toward a low carbon economy suggests that corporations may face big shifts in asset values or higher costs of doing business than others. Smart Climate Data Solutions equip investors with predictive tools to identify the risks and opportunities associated with plausible climate and energy transitions.

 

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Smart Climate Data Solutions: E-Scores

 

Smart Climate Data Solutions include subscription access to the following E-Scores, which are transition risk assessments at the security level:

EMTR Score: Energy Mix Transition Risk Scores are measures of climate risk exposure computed by applying a top-down approach using climate modeling and energy mapping driven down to the portfolio level and the individual securities within.

ADAPT Score: Measures a company’s ability to adapt to an extreme, high carbon environment. The ADAPT scores reward the companies that show lower-risks and superior performance in high carbon scenarios.

T-Risk Score: Measures a company’s transition risk in a low carbon environment. The T-Risk score rewards the companies that show superior performance and lower risks in transitioning to low carbon scenarios.

Smart Climate E-Scores can be computed for any publicly traded equity.

 

Back test results with E-Score integration show:

Emergence: The impact of climate change risk is more prominent in recent years (3-5 years) relative to earlier years.

Adaptation: Companies having lower exposure to climate change risk are at least 65% more likely to be investing in energy efficiency (and thus carbon cost reductions).

Outperformance: Use of the E-Score can statistically improve portfolio performance with a frequency greater than by chance.

 

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Smart Climate Data Solutions: Score Carding

Entelligent’s Smart Climate Score Carding ranks companies inside a portfolio or within their industrial sectors. When combined with specific financial indicators, Smart Climate rankings have demonstrated a probabilistically significant increase on returns.

The Smart Climate Score Card integrates all three E-Scores scenarios and allows side-by-side comparison of how companies fare across all plausible future climate these scenarios. Smart Climate Score Cards also include the Radar GINI, a combined score, which represents a company’s overall climate fitness.