Financial quantification of climate risk is the practice of expressing climate hazards as money — the expected loss, the value at risk, and the impact on an asset's value and returns.
You're on an investment committee choosing between two assets. Quantification puts a euro figure on each one's exposure — an expected annual loss, a tail-loss value, a hit to IRR — so the riskier asset can't hide behind a similar headline return.
Until climate risk is a number, it stays an abstract worry that committees discount. Quantified, it can be priced, budgeted, disclosed, and compared like any other financial risk. EarthScan produces these asset-level figures from science-based hazard modelling.
Model the hazards an asset faces, translate them into expected and tail losses, and express the result as money — expected annual loss, value at risk, and impact on returns.
