Financial services technology firm FIS has launched its Climate Risk Financial Modeller, a new software-as-a-service (SaaS) risk offering that aims to help businesses across all industries better assess, reduce and report their exposure to the physical risks of climate change.

The modeller, the company points out, coordinates client data with third-party climate data and is hosted on a new interface that is directly tailored to the risk management needs of corporates and financial institutions who seek a more proactive understanding of potential climate-related risks.

Users can perform powerful modelling on various weather-related threats at both the local and global levels, project potential financial losses from severe weather events, and determine the effects of climate change on their operations.

The solution makes use of powerful data from PwC US, combined with readily available information on a firm’s physical assets, such as its buildings and contents, along with global climate data, and performs relevant calculations.

Corporations of all sizes and across all industries are expected to be affected by climate change, and regulators around the world have been increasing their climate-related reporting and stress testing requirements as a result.

The effects of climate change, according to the World Economic Forum, are estimated to cause by 2050 between US$1.7 trillion and US$3.1 trillion in damages per year to infrastructure, property, agriculture and human health.

The United Nations’ Intergovernmental Panel on Climate Change estimates that the Asia-Pacific region is particularly vulnerable to the effects of climate change.

Richard de Haan, global risk modelling services leader at PwC US, says: “By providing a dataset that underpins FIS’ Climate Risk Financial Modeller, our team is helping to empower businesses of all sizes and sectors to shore up their operations against extreme weather events, address climate reporting requirements, and drive efficiency and sustainability.”