Methodology

ResilienceArc is a first-of-its-kind open tool to assess corporate exposure and resilience to physical climate risks. 

Built in close collaboration with Earth Capital Nexus at the Grantham Research Institute on Climate Change and the Environment, London School of Economics and Political Science (LSE EarthCap) and XDI (Cross Dependency Initiative), it addresses the increasingly urgent need for transparent and comprehensive assessment and management of physical climate risk. 

ResilienceArc aims to deliver two considerable additions to the climate data ecosystem:

1. A best-in-class methodology for assessing corporate exposure and resilience. This methodology is aligned with LSE EarthCap’s Corporate Resilience Aligned Benchmark (C-RAB).
2. An exploratory data platform actualising this best-in-class framework and providing open assessments of both corporate exposure to physical risks and their adaptation activities.

ResilienceArc provides the first assessments of corporate adaptation that consider both exposure to physical climate risks and companies’ progress in assessing and responding to those risks most material to their operations. The tool addresses a number of key gaps in the market:

• Until now, there has been no methodology that assesses both corporate exposure and corporate adaptation to physical risks within the same framework.
• Physical risk data often sits behind a paywall and is challenging to integrate into open frameworks.
• Existing frameworks on resilience and adaptation are in their nascent stages of development and fragmented. To date, there has been no data-driven framework designed specifically to benchmark companies on their resilience to physical climate risks.
• Data and analysis users, including financial institutions, increasingly need to integrate resilience and adaptation into transition analysis.

The following sections outline the methodology underpinning ResilienceArc.