The OS-Climate initiative, a non-profit under the Linux Foundation, has launched its inaugural set of three analytical tools designed to facilitate the transition to climate-aligned finance and investment practices.
OS-Climate aims to provide open-source data and software resources that can be leveraged by financial institutions, corporations, NGOs, regulators, and academic entities.
One of the highlighted tools, the Physical Risk & Resilience Tool, was spearheaded by BNP Paribas. This resource allows both financial and non-financial stakeholders to identify and assess risks related to climate resilience, utilizing asset vulnerability models that incorporate probabilistic forecasting and severity assessments of extreme climate events.
Another significant contribution comes from Allianz, which developed the Climate Portfolio Alignment Tool. This tool assists financial professionals in aligning their portfolios—at both the individual asset and loan levels—with the Paris Agreement’s target of limiting global temperature increases to 1.5 degrees Celsius.
Additionally, the Transitional Analysis Tool, created by Airbus, provides corporations with the capability to model, test, and perform scenario analyses to support strategic decision-making aligned with climate objectives.
Laurent David, Deputy COO at BNP Paribas, emphasizes the vital role that global financial institutions can play in fostering collaboration across the industry to manage climate risks effectively and boost investments in climate-focused companies and projects. He states, “By partnering with OS-Climate, we can develop open-source tools grounded in robust data more rapidly than we could independently, ultimately enhancing transparency and trust.”