Data Challenges

Key challenges of using physical climate data for financial decision-making include the massive, complex data from global climate models that require specialized computing and translation into usable financial metrics, the need for granular, location-specific risk data to understand asset exposure, and inconsistent terminology for climate risks. Moody's addresses these by developing analytic scoring approaches, integrating data into financial models, and collaborating with industry to standardize resilience measures, driving improvements in climate risk assessment and financial planning.