The Demex Group, a technology company that focuses on delivering climate-resilience through financial risks on a global scale, has launched a new service – Climate Risk Appraisals.
The company says that Climate Risk Appraisals will provide a new management strategy for climate resilience.
Demex assesses and prices climate-driven risk across an unlimited offering of financial instruments globally, tailored specifically to capital investments and management strategies.
Products like Demex Group’s new offering can help asset owners, investors and , management advisors understand their climate exposure better so that they can take the necessary steps to manage the risks resulting in an ability to buy parametric insurance or climate hedging products.
In addition, the company says that extreme rainfall, snowfall, wind, and temperature all impact investment valuations. This means that Capital advisors, asset managers, and ESG officers all face increasingly complex and nuanced exposures.
Addressing Climate Risk Appraisals, CEO of Demex, Ed Byrns, said: “Appraising climate risk is the first necessary step in forming strategies to manage financial climate risk. “Appraisals are also required in order to form and deploy new mechanisms for financial recovery when extreme weather drives unexpected losses.”
Because climate change is driving weather patterns to become increasingly unstable and unpredictable, it presents shifting risks for many businesses. But, through the advanced technology and rich data that Demex uses, they are ultimately helping us to understand the potential risks that climate change can have on the world.
Tools and services that Demex offers, like Climate Risk Appraisals are helping companies, investors and other entities to measure their climate risk exposure, therefore allowing them to take the necessary steps to help manage them better, such as through the purchase of insurance or reinsurance.
Climate Risk Appraisal can also help banks understand climate risk embedded in portfolios and mortgages, as well as business owners being able to understand their climate risk, offset and financial effects, and it can help investors get an understanding of how different climate scenarios could impact the returns of their investments.