Bloomberg and Riskthinking.AI launch IPCC-based physical climate risk indicators

Bloomberg and Riskthinking.AI launched physical risk indicators covering all IPCC-validated climate scenarios on the Bloomberg Terminal. These tools help investors assess company exposure to floods, droughts and wildfires, relevant as Indian firms face rising climate-disclosure expectations under global frameworks.

Bloomberg and Riskthinking.AI introduced physical risk indicators available on the Bloomberg Terminal and Bloomberg Data License, the first encompassing all climate scenarios validated by the IPCC. They combine Bloomberg's dataset of over one million physical assets with Riskthinking.AI's global climate projections, covering nearly 50,000 firms across manufacturing sites, energy plants, mining operations, office buildings and retail sites. The indicators grade physical risk exposure on a 0-to-100 scale across high, moderate and low classifications, with forward-looking projections to 2050.

Investors, asset managers and companies reporting under the Corporate Sustainability Reporting Directive (CSRD), TCFD recommendations and IFRS Sustainability Disclosure Standards are the primary users. The granular, bottom-up methodology assesses climate conditions at each asset location, enabling analysis of specific threats to a parent company's facilities. The indicators can be used with Bloomberg's global supply chain data to identify physical vulnerabilities in key suppliers that might adversely affect a company's operations across geographies.

Indian companies and investors preparing climate risk disclosures should monitor how such asset-level physical risk tools support reporting under TCFD recommendations and IFRS Sustainability Disclosure Standards, which inform India's BRSR and emerging disclosure frameworks. Firms with exposure to flood, drought or wildfire-prone operations or suppliers can use these indicators to quantify physical risk and reference the underlying documentation when reporting climate-related risks in compliance with global standards.

Key figure — Risk grading scale: 0 to 100, with projections to 2050