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We are excited to introduce Moody’s Climate on Demand version 2. This major version update to the existing Climate on Demand application has been built for those looking to understand the financial impacts of climate change on their business.

It does this by delivering a forward-looking view of global exposure to physical climate risks, including floods, heat stress, hurricanes and typhoons, sea level rise, water stress, wildfires as well as non-climatic risks such as earthquakes.

Moody's Climate on Demand
Figure 1: Screenshot from the Moody's Climate on Demand application

Updated New Methodology for More Comprehensive Climate Risk Modeling

This latest version includes an updated methodology (2023.1) that advances the climate risk analyses and scoring capabilities of Moody’s unified physical risk solution. The new methodology is deeply data-driven and looks to capture the nuances of risk drivers by incorporating a broad array of indicators, each focused on a distinct dimension of climate risk.

A major difference between versions 1 and 2 of the application is how the latest methodology can now incorporate RMS climate risk models. As a significant first step, Climate on Demand version 2 will incorporate flood hazard into its methodology, to start to unlock the benefit of RMS’s long-standing expertise in climate science, engineering, and financial modeling.

The inclusion of RMS risk models into Moody’s RMS Climate on Demand is just one of the exciting developments as a result of Moody’s acquisition of RMS in late 2021, which set the stage for a robust partnership that would accelerate Moody’s physical climate risk capabilities.

RMS is the world’s leading provider of climate and natural disaster risk modeling, widely respected by the insurance sector to underpin billions of dollars of risk transactions every day, with a catalog of over 400 risk models covering 120 countries.

These models are now also being adapted to the needs of asset managers, banks, investors, corporates, and governments to understand the potential future financial impacts of climate change, so they can make better decisions today.

You can explore RMS’s sophisticated risk models here and read an overview of RMS’s climate risk modeling here.

With the incorporation of RMS flood risk expertise, a major enhancement in this new methodology is the ability to model flood risk in greater detail with flood hazard resolutions increased from 90 meters x 90 meters to 30 meters x 30 meters.

The improved methodology also combines the impact of flood defenses, local drainage systems such as those in urban areas, and a machine learning model to better represent flood risk around the world where data is often scarce. This all provides a greatly improved representation of flood risk. (You can learn more about RMS’s flood modeling here)

Integration into Intelligent Risk Platform for Secure and Reliable Access to Climate Risk Analytics

Another important update in the new version is the integration of Climate on Demand with Moody’s RMS Intelligent Risk Platform™ (IRP).

The platform supports multiple risk applications and comes with built-in compliance for industry-recognized requirements such as GDPR, SOC 1 and SOC 2, ISO 27001, and C5 as well as service level agreement (SLA) that provide higher uptime for applications.

Moody's Climate on Demand
Figure 2: Launchpad page providing access to multiple Moody's RMS applications

The new integration with the IRP provides a unified way to serve climate risk data and deliver future enhancements through to the Climate on Demand application much faster.

Coming Enhancements to Climate on Demand

With Climate on Demand benefiting from integration with the IRP, this allows version 2 to continue to incorporate new and exciting climate analytics. New ‘Impact Scores’ and ‘Financial Loss Metrics’ are set to be introduced that will provide users with even more detailed insights into the cost of climate change, whether it is from damage to assets, business interruption, reduced productivity, or increased running costs.

This will bring a deeper understanding of a user’s climate risk by incorporating exposure and vulnerability as well as hazard to really understand which assets are most vulnerable to climate change, and what the business impact could be to an overall portfolio.

You can read a quick overview of the ‘Impact Scores’ and ‘Financial Loss Metrics’ coming soon to Climate on Demand here.

The integration of Climate on Demand into the IRP will also mean that in the future, users can take advantage of capabilities like currency conversion controls, security controls for users, and API access.

This will also include event analysis to help users replay past events on a portfolio, with all the other platform applications able to access the analysis for more comprehensive processing of financial results and understanding of climate risk.

To stay up-to-date on new developments for Climate on Demand, you can visit the Climate on Demand site here.

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Mitwa Patel
Mitwa Patel
Junior Product Manager, Data Product Management

Mitwa is a junior product manager with the data product management team, responsible for Climate on Demand and other physical climate change risk data products with Moody's RMS.

She has been working in the physical climate risk space at Moody's and RMS since Jan 2022. Prior to that, she was in the ESG space focusing on materiality assessments, and served in business development and client success roles.

Mitwa has a bachelor's degree in Atmospheric Sciences with a concentration in Chemistry and Air Quality and a minor in Applied Mathematics from the University of Washington, Seattle.

Colin Shaw
Colin Shaw
Product Manager, Data Product Management

Colin is a product manager with the data product management team, serving as product owner for Moody's Climate on Demand and other physical climate change risk data products with Moody’s RMS.

He has been working in the physical climate risk space since 2015, serving as Four Twenty-Seven’s Chief Operating Officer prior to being acquired by Moody’s in 2019. Colin has held multiple roles with Moody’s and RMS, overseeing the development and maintenance of climate physical risk products for corporate and financial institutions.

Colin has a master’s degree in Development Practice from the University of California, Berkeley, and a bachelor’s degree in mathematics from the University of Massachusetts.

Josh Turner
Josh Turner
Product Manager, Data Product Management

Josh is a product manager with the data product management team, responsible for Climate on Demand and other physical climate change risk data products with Moody’s RMS.

He has been working in the physical climate risk space since 2016 with Moody’s and RMS, first developing models for risk assessment, and now within the product management organization.

Josh has a master’s degree in Climate and Society from Columbia University, and a bachelor’s degree in meteorology and applied mathematics from the University of Miami.

Cihan Biyikoglu
Cihan Biyikoglu
Executive Vice President

Cihan Biyikoglu is the Executive Vice President, Product for RMS, responsible for product management across the full suite of RMS models and risk management tools. He has extensive experience in leading product management for innovative machine learning and big data analytics solutions at Fortune 500 companies over the last 20 years.

As a former Vice President of Product at Databricks and Redis Labs, Cihan both developed the product strategy and road map for open-source technologies such as Apache Spark and Redis and respective enterprise offerings in the public and private cloud platforms.

Cihan also worked on products at Microsoft, Couchbase, and Twitter, where he focused on on-premises and cloud offerings in the data and analytics space. At Microsoft, Cihan focused on the incubation of the Azure Cloud Platform in its early days and the SQL Server product line, both of which have grown to multi-billion-dollar businesses for Microsoft.

Cihan holds a number of patents in the data management and analytics space, and he has a master’s degree in database systems and a bachelor’s degree in computer engineering.

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