The dialogue around climate change’s impact on India has been prevalent within the climate change community. However, comprehensive and evidence-based research involving stakeholders, particularly the industry, has been notably limited. This has obscured awareness and the progress of time-sensitive actions to foster climate change resilience within the Indian industrial landscape. The physical risks must be evaluated considering geolocation data (due to the spatial variability of climate impacts) to measure these risks effectively. CSI and IPE Global already have an in-principle buy-in from the relevant government and non-governmental stakeholders like the Ministry of Commerce to undertake this study, which will map the industrial readiness for climate change by simulating different scenarios and stress tests through physical climate models.
IPE will conduct the assessment at a highly granular level using geospatial data, enabling us to be location-specific and thus understand the supply chain and industry-specific outcomes. We will conduct a portfolio analysis, scenario analysis (through baseline assessment), and stress tests to understand the level of awareness in targeted industries, understand the previous impacts of extreme climatic events on operations and quantify potential climate-related financial risks. We will be mapping the financial impact of the climate change-related event on company/cluster operations in the selected region. We will identify risk transmission channels in broadly three categories — direct impact, indirect impact, and spillover effects (intra-economy, cross-border impact, or contagion risks). To predict the financial repercussions of climate-related events on sectors, assets, or companies, we will integrate climate data with the potential impact on cash flows, costs, damages, and other critical factors.
