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Physical Risks Hub

1. Mission statement

The Physical Risks Module provides actionable insights into the growing impacts of climate-related hazards on assets, infrastructure, and communities. As climate change accelerates, acute events such as floods, wildfires, and storms are becoming more frequent and severe, while chronic risks like sea level rise and extreme heat increasingly affect long-term viability and investment decisions.

This module translates complex climate data into decision-relevant information for a wide range of users—from financial institutions and insurers to policy makers, corporations, and researchers. By integrating high-resolution climate projections, exposure mapping, and vulnerability assessments, it enables users to understand how physical risks manifest under different climate scenarios and across different time horizons.

Whether you're assessing portfolio resilience, developing adaptation strategies, or complying with emerging disclosure standards (such as TCFD, ISSB, or CSRD), this module offers tools to help identify, quantify, and respond to the physical risks that matter most to your mission.

2. Target Audiences & Key Questions

Who benefits from these modules?

  • Researchers:
    • How do markets price physical risks?
    • Can we quantify physical risk exposure in terms of potential losses?
  • Government & Policy Makers:
    • Which regions or communities are most vulnerable to future climate-related physical risks?
    • How can we assess the effectiveness of existing adaptation strategies?
  • Insurers:
    • How might physical risks affect the value or insurability of assets in specific regions?
    • What is the projected increase in claims under future climate scenarios?
  • Reinsurers:
    • How are correlated risks changing across geographies and lines of business?
    • How do different climate models affect tail risk in our catastrophe models?
  • Financial Institutions (banks, asset managers, pension funds, development finance):
    • How will physical risks (e.g. floods, storms, wildfires, heatwaves) affet the valuation of real assets in our portfolio?
    • How should physical risks influence our asset allocation strategies?
    • How will physical hazards affect debtors creditworthiness?
  • Corporations:
    • Are our operations or supply chains exposed to increasing physical risks?
    • How can we meet climate disclosure requirements (e.g. TCFD)?

3. Contact

Led by the Institut Louis Bachelier (ILB), the Equipex PLADIFES has been selected within the framework of the Investissements d’avenir 2021 (ANR-21-ESRE-0036) and is thus financed by the French National Agency of Research (ANR).

The overall goal of the Pladifes project is to foster research in both traditional as well as green and sustainable finance by providing access to financial and extra-financial databases and complementary services. The Physical Risks Hub is one such service.

For inquiries, collaborations, or support, feel free to directly reach out to Hamada Saleh or the Pladifes team.