Morningstar Sustainalytics Enhances Physical Climate Risk Capabilities with XDI and Veridion
Dataset is designed to translate asset-level climate hazards into risk metrics for investors
Morningstar Sustainalytics, a leading provider of sustainable investing research, ratings, and data, today announced it is collaborating with XDI (Cross Dependency Initiative), physical climate risk specialists, and Veridion, an AI-powered business data platform to further develop its physical climate risk product for asset managers and asset owners.
This development intends to address a key gap in existing climate risk tools by seeking to translate physical hazard exposure into financially relevant insights. While the industry has made progress in identifying which assets face exposure to floods, wildfires, heat stress and other climate hazards, converting that exposure into metrics that support real investment decisions remains an evolving challenge.
A group of asset managers and asset owners will act as partners, providing ongoing input on use cases, data needs, and integration into existing investment workflows. This will build on Morningstar Sustainalytics’ broader climate offering, including its Low Carbon Transition Ratings and existing Physical Climate Risk Metrics.
