Physical Risk: Country, Subnational & Municipal

The Physical Risk: Country, Subnational & Municipal datasets provide decision-grade metrics to inform countries and sovereign debt investors, or US states, counties and municipal debt investors, with robust data on climate hazard physical exposures that provide absolute and relative metrics, as well as economic exposure materiality.

Both datasets cover nine climate hazards (Extreme Heat, Extreme Cold, Drought, Wildfire, Coastal Flooding, Fluvial Flooding, Pluvial Flooding, Water Stress, and Tropical Cyclone), four scenarios [Low (SSP1-2.6), Medium (SSP2-4.5), Medium-High (SSP3-7.0) and High (SSP5-8.5)] and eight time periods (from the 2020s to the 2090s). Investors in sovereign and/or municipal debt markets can use these datasets to compare future climate hazard exposures, and inform reporting or investment decisions accordingly. 

The datasets include:

• Issuer (country, subnational, or US state and county) level physical risk scores reflecting relative exposure to climate hazards across scenarios and time periods, weighted by intersecting GDP
• GDP-weighted annual hazard frequencies, estimating the absolute frequency increase in climate hazards that key economic areas will face
• GDP and population exposed metrics, reflecting the proportion of GDP generated, or the percentage of population within an issuer’s geographic boundaries that is exposed to material changes in each physical hazard
• Composite Exposure Score coverage, to integrate all hazard exposure scores via exponential scoring transform
• Physical Risk: Country & Subnational dataset covers over 200 countries globally and 2,000+ sub-nationals
• The Physical Risk: Municipal dataset provides climate exposures relevant to general obligation instruments for over 3,100 US counties and 50 states
• The Physical Risk: Municipal dataset also includes a ‘US Exposure Score’, reflecting exposure to climate hazards relative to US issuers and the 2020s-2050s only