The Linux Foundation's OS-Climate non-profit has released its first three analytic tools to help with the shift to climate-aligned finance and investing.
OS-Climate has set itself the goal of providing open-source data and software tools that can be used by financial institutions, corporations, NGOs, regulators and academics.
BNP Paribas took the lead on one of the first batch of tools. Called the Physical Risk & Resilience Tool, it enables financial and non-financial stakeholders to identify and quantify risk related to climate resilience, through asset vulnerability models that use probability and severity forecasting of extreme climate events.
Insurer Allianz led the development of the Climate Portfolio Alignment Tool, which helps financial stakeholders to align portfolios at individual holdings and loan levels with the Paris Accord target temperature increase of 1.5 degrees Celsius.
Finally, the Transitional Analysis Tool developed by Airbus will enable corporations to model, test and conduct scenario analysis for strategic climate-aligned decisions.
Laurent David, deputy COO, BNP Paribas, says: "As a global financial institution, we can play a significant role in driving collaboration across the industry to help manage climate risk and increase investment in climate-aligned companies and projects.
"Through our collaboration with OS-Climate we can develop open source tools based on proper data far more rapidly than we could on our own. This will ultimately foster transparency and trust."