Methodology

All metrics view

Companies listed in the “All metrics” view have been evaluated across all five metrics and have both an overall resilience score and physical climate risk profile. 

Assessments are grouped across 10 sectors, enabling company comparisons both within and across sectors. 

(As of June 2026, available for ~200 companies)

Asset only view

Users can also explore the physical risk profiles of individual companies in the "Asset only" view and examine their exposure to climate hazards through two main sub-metrics, High Risk Assets and Revenue Impairment.

(As of June 2026, available for ~3,000 companies)

Individual company view

Users can explore a company’s overall resilience at a high level and access detailed assessments across key dimensions of exposure and resilience using five metrics: Assets, Processes, Implementation, Governance, and Targets. (As of June 2026, full assessments across all five metrics are available for ~200 companies)

Interactive Framework Explorer

The Interactive Framework Explorer allows users to get into the details of behind each ResilienceArc metric, sub-metric, and 200+ indicator, as well as see how they map to existing sustainability and disclosure frameworks.

Users can use the Search function at the top of the page to look for a specific metric, sub-metric, or indicator.

A “Methodological note” icon indicates where a specific metric or indicator may have certain caveats, assumptions, or limitations.

A “Framework mapping” icon allows you to see how a specific metric or indicator maps to, or aligns with, an existing sustainability framework. 

Users can also opt for the “Tour” feature which will guide you through the Framework explorer. 

Personalised settings

Users can modify default climate scenario settings, which are set at RCP6.0 with a timeframe up to 2050. Users have the flexibility to toggle between the following scenarios and timeframes: 

• RCP2.6, RCP4.5, RCP6.0 (default), and RCP8.5
• 1990 to 2100, 2050 (default), and 5-year increments up to 2100. 

Weightings for individual metrics cannot currently be modified in the web application. Future updates will allow users to modify default weight settings. 

In 2024, Arc launched TransitionArc, a first-of-its-kind tool bringing together world leading assessments of corporate transition risk. TransitionArc worked to address the increasing volume and fragmentation of corporate transition-related frameworks, disclosures and assessments, by building cohesion in an increasingly confusing space. 

Corporate transitions benefit from having numerous frameworks that lay out what good disclosure and performance looks like across various areas. However, there is so far less consensus on how corporates should address physical risk exposure and adaptation within their operations. 

As in TransitionArc, ResilienceArc seeks to bring together the best-in-class approaches for assessing corporate climate performance. Unlike TransitionArc, where the metrics for climate transition were well established, building ResilienceArc required the development of a standalone framework for assessing corporate resilience that included both physical risk exposure and adaptation activities. 

The data infrastructure behind TransitionArc and ResilienceArc has been built with the same principles: radical interoperability and transparency, combined with state-of-the-art technical infrastructure. These design principles will, in time, facilitate convergence of TransitionArc and ResilienceArc to provide a more holistic view of corporate climate action. 

However, it is not currently possible or desirable to integrate the two views due to the radically different landscapes of methodological innovation, disclosure regulation, and assessment volume of transition risk compared to physical risk. As frameworks, disclosure standards, and methodologies converge, we expect it will become possible to integrate physical and transition risk assessments into a more consolidated picture.

ResilienceArc has been designed with a series of core principles to ensure that it addresses user needs for traceability, comparability, and transparency:

• Assessment metrics are aligned with existing adaptation and resilience frameworks, where available.
• Data structures are designed to be fully interoperable with existing and alternative datasets on corporate disclosures, and physical and transition risk.
• Data is fully traceable back to source.
  • For corporate disclosures on adaptation planning, this means providing links to both the LLM response driving grading, and the source documents on which the response is based.
  • For physical risk data, ResilienceArc provides underlying assumptions, company-level hazard-specific risk metrics, and aggregated asset data maps.
• All methodological steps, choices, limitations, and assumptions, where possible, are documented and accessible.
• User customisation of time horizons and climate scenarios is supported.
• The platform is publicly accessible, while data is delivered directly to user institutions via an API and the Cloud from the Arc Data Warehouse.

Companies are encouraged to verify their data, flag inaccuracies, and supply additional data to strengthen the analysis via a dedicated Corporate Engagement Portal. More details on this are available in Section 6.6.

ResilienceArc initially provides company adaptation and resilience assessments for approximately 200 of the largest and most significant companies in the world.

These companies together represent many of the largest emitters globally and are broadly aligned with the Climate Action 100+ and Nature Action 100 benchmarks. They are critical players with the potential to initiate a new phase of corporate accountability and transparency as it relates to resilience and adaptation. These ~200 companies are assessed against all five ResilienceArc metrics. This includes asset-level physical risk assessments under Assets, and LSE EarthCap assessments across Processes, Implementation, Governance, and Targets.

ResilienceArc also includes asset-only profiles for an additional 3,000 companies. These 3,000 companies are assessed in the Assets metric only using XDI precision asset metrics. These are publicly-listed and private companies, spanning a much broader universe of countries (both developed and emerging economies) and sectors. 

By the end of 2026, we plan to increase the number of companies with asset-only profiles from 3,000 to 9,000, representing a large global universe of investable companies (large, mid, and small market capitalisation), including the MSCI ACWI and MSCI IMI Index constituents, and 400 of the world’s largest private companies.

Assessing corporate resilience is a challenging and methodologically complex problem. This first version of ResilienceArc is intended as the starting point for ongoing collaboration and innovation.  

Arc will continue to refine ResilienceArc as new data, evidence, methodologies, and user feedback emerge. In parallel, we will work with partners to enhance assessments of sectors, regions, and value chains. Together with XDI and LSE EarthCap, we have already identified priority areas for improvement to our current approach, which have shaped our upcoming priorities and partnerships. These include the following.

6.5.1 Enhancing the fidelity of asset-level physical risk assessments

Improving key sectors

ResilienceArc focuses on the physical risks of assets directly owned and operated by companies. However, identifying asset locations, ownership structures, and associated risks varies significantly across methodologies (as noted by the UK Financial Conduct Authority). 

The analysis applied by XDI in this version of ResilienceArc uses latitude-longitude and address-based discovery of assets owned or being used by companies around the world. On average, many hundreds of property assets are discovered for each company. Precision centroid points are allocated, and the detailed location, hazard, weather and climate data is extracted and analysed for risks of damage and disruption to engineering specified proxy archetypes. 

However, this system is not the most appropriate for companies whose assets may be dominated by (a) large expanses such as farms or mines, (b) linear assets such as water, wastewater, oil or gas pipelines, toll roads and power / telco networks, (c) banks and finance companies whose exposure is determined by the lending footprint, such as a mortgage portfolio. These are areas of future development and implementation for the ResilienceArc partnership.  

In the meantime, results should be treated with caution for companies from resources, utilities, agriculture, and finance sectors. 

Archetypes

XDI’s Structural Analysis uses an engineering model that calculates risk to individual assets by running analyses on representative “archetypes” comprised of the physical elements that make up each asset, and the dependencies between them.  XDI “Archetypes” are standardised profiles that estimate how different structures and infrastructure will react to physical climate hazards. These models define assumptions like construction materials, build year, and floor height. The analysis used within ResilienceArc uses the archetype “modern commercial”. This archetype does not capture the unique features of assets common to certain sectors in ResilienceArc. For example, characteristics of assets in the oil and gas sector such as refineries, pipelines, and rigs may not be accurately represented by this archetype.

Following the beta launch, we will roll out more differentiated archetypes across a range of sectors.

Future improvements

Potential solutions to these challenging areas, and areas for future improvement include:

• Enhancing the precision of physical‑risk assessments in harder-to-track sectors (mining, utilities, oil and gas). In partnership with other organisations, including Global Energy Monitor (GEM), this will also look at the comparison and validation of asset-level data across multiple sources and platforms.
• Developing an improved analysis of corporate supply chain risks, complementing the current view of physical climate risks affecting the assets directly owned and operated by companies.
• Farms require a different approach to standard assets as the activity is not limited to single assets or the built environment but extends into the agricultural landscape. XDI has developed models for the physical risk of climate change to broadacre crop farming, dairy and livestock which it hopes to apply globally.
• Climate tipping points: Additional climate modelling to include up to three climate tipping points, including cryosphere (ice-bound domains), biosphere (the living world), ocean and atmosphere (e.g., Atlantic Meridional Overturning Circulation or AMOC turnover).
• Nature and biodiversity links to asset level data, including partnerships with high-resolution biodiversity analysis companies extracting data from satellite imagery.

6.5.2 Standardising assessments of corporate disclosure   

Assessing corporate disclosures by using AI to identify adaptation and resilience efforts is an innovative approach. As such, it remains subject to important data limitations. These stem in part from: 

• The lack of a standardised framework for reporting on climate risk and adaptation, or guidance for setting targets on adaptation.
• Limited disclosures on corporate adaptation. Because corporate adaptation is often embedded within core capital and operational expenditures and broader risk management processes, rather than being explicitly labelled or disclosed as ‘adaptation investment,’ some activities may be missed.  

Capturing these elements through public disclosures is therefore inherently challenging. 

Potential avenues for improvement include:

• Expanding data sources (e.g. including CDP reports, older disclosures, and disclosures in other languages).
• Engaging directly with companies to strengthen the robustness of data and information.

• Introducing sector-specific taxonomies to move beyond the current sector-agnostic framework. 

   

6.5.3 Other areas for future development

More broadly, areas for future development include:

• Scale: Expanding the universe of companies assessed in ResilienceArc, including both publicly-listed and private companies. While the current beta version of ResilienceArc contains data on just 200 companies, we anticipate that coverage will scale rapidly. We are aiming to assess 3,000 companies against all metrics annually by the end of 2027 and 10,000 by the end of 2028.
• Sector-specificity: Improving the ability of the framework (currently sector-agnostic) to capture adaptation measures in a sector-specific way. As we expand, we will identify the sectors where a deeper, more sector-specific approach is needed and where sectoral taxonomies may need to be integrated. Priorities are likely to include food, mining, power sector, and data centres.
• Corporate engagement: Engaging with corporates to ensure accuracy, verify results, and create feedback mechanisms to enable better disclosures and better assessments (see Section 6.6).
• Integrating nature risk: Illustrating the interlinkages across physical climate risk, resilience, and nature.
• Sovereign and country-level resilience: Connecting corporate resilience efforts with relevant national and regional policies and regulations. This will enable corporates and users to understand how their adaptation plans align with the relevant policy environment and where further policy action is needed to support company resilience.
• Localised resilience assessments: Collaborating with local partners to assess corporate resilience and adaptation. They will gather and evaluate disclosures from local companies, validate results generated by the LLM model, and conduct corporate engagements.
• Portfolio analysis feature: Allowing users to analyse the resilience of entire portfolios, which will be especially beneficial for financial institutions. For now, users can see individual company scores and sectoral benchmarks. 

We recognise that many corporates are only at the start of their journey of thinking through how they can respond to the wide range of physical risks that can affect their operations and value chains. But ResilienceArc shows companies what is required to build resilience to physical risks and helps to lay out a path for improvement. 

Furthermore, Arc believes that data systems like ResilienceArc can help build greater connections between what is happening on adaptation and resilience in the real economy and in financial decision-making. The technology stack we have built will help financial decision makers to close this gap by providing reliable information consistently and at scale. 

In assessing the physical risk impacts on a company, XDI have made best efforts to ensure that all companies’ assets are identified and geo-located as accurately as possible, including by working with best-in-class providers of asset information. However, we acknowledge that this will not always be perfect and weaknesses exist (see Section 6.5). 

For companies included in this Beta version of ResilienceArc, we welcome engagement on whether the platform is providing the right lens into your adaptation and resilience actions that are required. Should you have any questions or queries about your assessment or the platform more broadly, please contact support@arcconnect.global.

A company engagement portal, operated by XDI, also enables direct engagement by companies on the physical assets included in the platform. This engagement portal will allow companies to re-submit their list of physical assets. When a company submits its list of assets, XDI will recalculate the company’s physical risk profile accordingly. Over time, this portal will also become more sophisticated and allow for submission of additional materials. Asset details can be submitted by contacting support@arcconnect.global. 

In future (non-beta) phases, corporate assessments completed by our partners will be sent to companies in a "validation" phase and will offer companies a chance to give feedback on whether assessments are missing any information or require any upfront corrections to what is included.

All enquiries and complaints are handled by Arc’s Enquiry Support Team. We aim to respond to your enquiry within 2 working days. Please note that more complex enquiries may require additional time to ensure a complete response. If this is the case, we will keep you informed of expected timelines.