Initiative to improve scenario modeling will benefit from RAND’s expertise in climate simulation and implications of global geopolitics
November 10, 2022 | Boulder, Colorado — Entelligent, an independent climate data and analytics provider, and the RAND Corporation, a nonprofit, non-partisan global research organization, today announce a new collaboration that will elevate the quality of the data and analytics available to businesses and financial institutions as they seek to manage climate risk.
The announcement comes at a critical moment for the world, with public discourse around environmental, social, and governance (ESG) investing increasingly strident and geopolitical tensions compromising access to energy resources worldwide. At the same time, a growing cohort of pragmatists is emerging within the international financial and business community that sees effective climate risk management as critical to success in the global marketplace — regardless of political or national affiliation.
“We take a steely-eyed view when it comes to ESG investing,” said Entelligent CEO Thomas H. Stoner. “Climate change is a financial risk factor, and we see RAND as an important contributor to our founding mission of giving businesses and investors the tools they need to properly account for that risk.”
The collaboration’s primary focus will be on better harnessing the power of Integrated Assessment Models (IAMs), key components of many climate-risk models that combine complex social and economic information with environmental forecasts to simulate outcomes. The improved simulations will bring increased efficacy and explanatory power to Entelligent’s data and analytics and, in turn, to its clients’ quantitative decision-making.
RAND’s unparalleled expertise in systems analysis, climate risk and global geopolitics will bring particular relevance to this work in light of recent tectonic shifts in energy economics.
“Proper accounting of the financial risks and opportunities created by the transition to a net zero emissions economy is vital for an effective societal response to climate change,” said Anita Chandra, vice president and director of RAND Social and Economic Well-Being. “We’re excited to work with Entelligent to advance the state of the art in climate financial risk management.”
Under the deal, RAND will work with Entelligent to form an “ensemble” approach to IAM deployment; implement, manage and maintain the ensemble IAM going forward; and make available its combined outputs to the company for use in its flagship E-Score and T-Risk score, both already profitably embedded in investment products marketed by large international banks. The initiative will put a deeper understanding of global climate systems and outcomes at the disposal of Entelligent and its clients, putting both at the leading edge of the field of climate impact analysis.
As such, the Entelligent / RAND collaboration will have farther-reaching impacts — contributing to a broader conversation within the academic and research communities in climate and data science. Ideas incubated by RAND and Entelligent will be shared with the policy and academic communities and Entelligent’s clients will gain powerful learnings in return.
Entelligent’s collaboration with RAND to enhance the usefulness of IAMs supports the company’s founding mission: to develop and disseminate new ideas and approaches to climate risk; to help businesses, today and in the future, position themselves for uncertain outcomes; and to better enable the capital markets to direct resources to the best-prepared companies.
Entelligent is an independent technology company that has developed proprietary and patented (USA) technology to analyze forward-looking climate scenario models to improve risk-adjusted returns for institutional investors. Entelligent was the first company to be granted a patent for the use of climate scenario analysis in climate-risk assessment for security selection and other financial products. Entelligent’s data analytics platform allows the capital markets to make a positive impact on climate change and addresses the lack of clear, tangible metrics to provide a roadmap for effective climate risk investing. It offers a portfolio of solutions including Smart Climate®, E-Score® and T-Risk to deliver climate change risk metrics for securities and portfolios. Learn more about Entelligent here: https://www.entelligent.com/
About the RAND Corporation
The RAND Corporation is a nonprofit institution that helps improve policy and decision-making through research and analysis. To sign up for RAND e-mail alerts: http://www.rand.org/publications/email.html