Unpacking the Complex Relationship of Economics and Climate

The human capabilities know no realistic end, and yet the most valuable element among them remains our expertise in getting better on a consistent basis. This knowhow, in particular, has already got the world to hit upon some huge milestones, with technology appearing as a major member of the stated group. The reason why technology has always enjoyed such an esteemed stature is, by and large, predicated upon its skill-set, which ushered us towards a reality that nobody could have ever imagined otherwise. Nevertheless, if we look up close for a second, it will become clear how the whole runner was also very much inspired from the way we applied those skills across a real world environment. The latter component was, in fact, what gave the creation a spectrum-wide presence, and consequentially, kickstarted a tech revolution. Of course, this revolution then went on to scale up the human experience through some outright unique avenues, but even after achieving a feat so notable, technology will somehow continue to produce the right goods. The same has grown increasingly evident over the recent past, and assuming one new fintech-themed development shakes out just like we envision, it will only make that trend bigger and better moving forward.

Dun & Bradstreet, a leading global provider of business decisioning data and analytics, has officially announced a partnership with Climate Engine, a pioneer in climate data and analytics, to launch D&B Climate Risk Insights solution. According to certain reports, the stated solution comes decked up with an ability to help businesses mitigate the risks of prevalent climate-related disasters and build more resilient business relationships. This includes leveraging both near-term weather predictions and long-term climate models to empower business leaders to better understand what they can do when preparing for the impacts of extreme climate events, and therefore, avoid serious business disruptions. Talk about the whole value proposition on a slightly deeper, though, D &B Climate Risk Insights will look to take Dun & Bradstreet’s Data Cloud used for identifying more than half a billion public and private businesses worldwide, and then combine that with Climate Engine’s climate risk data gathered from geo-spatial satellite imagery. This should uncover the links between planetary change and economic impacts on more than 200 million active business locations. Now, while this makes the equipped to particularly gauge chronic risks, it will also bring to the fore current insights on acute physical climate risks to provide visibility for predicting climate-related impacts, and calculating the probability of recovery. The latter bit bucks a major trend, considering companies have always relied more on long-term climate models to plan for related risks, often extending their forecasting horizons to 2050 and 2100. It’s not to say that such models aren’t important for wider strategic planning, but one thing they have struggled with is assisting businesses when the agenda is to make decisions rapidly amid changing environmental conditions.

“By fusing Dun & Bradstreet’s extensive firmographic and financial data with Climate Engine’s cutting-edge climate data analytics, we can provide businesses with an economic early warning system that helps them to predict the financial impacts of climate change, so they can make informed decisions and proactively build business resilience in the face of climate risks,” said Jamie Herring, CEO at Climate Engine.

The development provides an interesting follow-up to one report from the National Oceanic and Atmospheric Administration where it was claimed that the United States alone has already exceeded $57.6 billion in climate-related damages during 2023. Worsening the situation is Dun & Bradstreet’s own data, which claims that, by 2050, over 82%, or more than 192 million, global business locations will be facing twice the risk of experiencing at least one extreme climate event that could threaten business continuity.

To navigate that, D&B Climate Risk Insights has pledged to offer valuable advantages across multiple sectors. For instance, financial institutions can incorporate new climate risk considerations to scale up the quality of their lending and investment decisions. On the other hand, insurers can use the same for refining their risk models, pricing strategies, and underwriting practices. Furthermore, supply chain stakeholders can also bank upon it to proactively minimize their risk and mitigate near-term and long-term vulnerabilities.

Founded in 1841, Dun & Bradstreet has risen up on the back of a Data Cloud, which makes it possible for customers to accelerate revenue, lower cost, mitigate risk, and effectively transform their businesses.  Making the company’s prospects even brighter is the fact that business of all sizes can rely on Dun & Bradstreet to enhance their operation.

As for what turns Climate Engine into an ideal partner for such an initiative, the answer comes from its excellence in applying climate and Earth analytics to help businesses survive against increasing environmental risks. This excellence on the company’s part is mainly a result of its flagship product ‘SpatiaFi’, which connects proprietary climate models with location specific economic data to provide unheralded views of connections between planetary change and financial impacts. In case you have got any reservations about SpatiaFi’s prowess, then it must be mentioned how the product has also won Google Cloud’s Industry Partner of the year for sustainability in 2023.

“As climate-related events continue to impact the global business environment, long-term models can serve as a compass for charting the course, but business leaders need to be prepared with the necessary insights to make immediate, tactical decisions around their operations and investments to mitigate these risks,” said Jason Lindauer, Senior Director of Environmental, Social & Governance (ESG) Product at Dun & Bradstreet. “D&B Climate Risk Insights is a powerful tool to help navigate an increasingly complex and climate-vulnerable landscape.”