Which cities and counties are most ready for a changing climate?
Cities of similar climate risk possess varying levels of climate readiness.
We define climate readiness as the capacity for a location to build preemptive advantage in adapting to a changing climate.
Readiness is not about sustainability, greenhouse gas reduction or ESG.
It answers a simple, but critical question: how ‘climate-ready’ is the market I am investing in?
How well will a city or county withstand hazard and disruption?
What indicators suggest the local economy will recover rapidly, and preserve cash flows?
TEN MARKET CASE STUDY
The ten (10) markets selected in this sample (county-level geo.ids within major cities) record a score of 0.9 out of 5.0 on the Risq-ICE aggregate climate risk score (county level, n = 3,143).
With all major climate hazards weighted for a range of considerations (frequency, VaR, estimated annual losses), this score reflects that relative to a nationwide experience, these 10 markets exhibit similar levels of exposure in the firm’s best climate data.
To be clear: each market will have particular hazards more likely than others, but their overall risk profile is similar.
If the climate risk is similar, what about their climate readiness?
