Glossary
Climate-adjusted valuation
Climate-adjusted valuation
Which climate risk platform is right for your business?
CONTENTS
Climate-adjusted valuation is an asset valuation that builds climate risk — physical hazards and transition factors — into the projected cash flows, costs, and discount rate.
Example in context
You're on an investment committee comparing two wind farms with similar headline returns. Climate-adjusted, the one facing higher heat and water stress shows a 1.6-point lower IRR and a weaker exit multiple — enough to change which deal you do.
Why it matters
Valuation is where climate risk becomes a go/no-go decision — adjust for it and you stop overpaying for exposed assets and protect returns. EarthScan supplies the asset-level loss metrics that feed the adjustment.
Climate-adjust your next deal
FAQ
How does climate risk change an asset's valuation?
It raises expected costs and losses and can lift the discount rate, lowering projected cash flows, IRR, and exit value.
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