Why XDI?

Our values

Our goal is to accelerate action on climate change by embedding physical climate risk data in all decisions

As the physical climate risk experts, we’re here to help you - whether at the start of your journey, or advanced, we deliver actionable results.

We’re independent

XDI is part of The Climate Risk Group, a group of companies committed to quantifying and communicating the costs of climate change.

We’re serious about climate

Ours is a mission-driven company.

We exist to help our clients and community understand and manage unavoidable climate change, whilst demonstrating the imperative for a low carbon world.

We see every contract as a collaboration. We are trusted by governments, NGOs, companies, banks and communities - and while some see themselves in opposite corners - we believe it will take all actors working together to solve this challenge.

We’ve got heart

Data and information alone do not create change: data needs humanity and humanity needs ambition.

Our vision is not just to identify physical climate risks, but to also mitigate them.

Our goal is a more climate-resilient community.

Our approach is to work with you over the course of your climate risk journey.

Delivering physical climate risk data around the world

We analyse assets in over 175 countries

The largest supplier to banks and financial services, globally

We continue to work with some of the world's largest companies and are the largest provider of climate risk data to the financial services industry.

Award winning research and data

Under constant development with clients and industry, The Climate Risk Engines analyse the impacts of extreme weather and climate change to critical infrastructure and other physical assets. An independent market survey ranked XDI the highest for hazards covered, geographical reach and capacity for analysis of large number of assets.

Physical climate risk experts

Physical Climate Risk is what we do - what we’ve advised on since 2007. We provide the world’s most detailed physical climate risk analysis and adaptation capabilities.

Engineering methods

We build from the ground up using bespoke code, running on specially configured banks of high- speed servers. We use engineering methods focused on the physical mechanisms that would undermine the ability of an asset, system or person to function in the advent of climate impacts.

How does our analysis compare?

Forward looking climate modelling

XDI analytics test assets against the evolution of hazards for which there is no precedent; a truly forward-looking approach which embodies scenario analysis best practice. Data from the latest IPCC climate models is used.

Not historical data

Catastrophe models rely on historical data which is limited to insured loss of an outmoded asset base within the former geographic boundaries of climate hazards

Asset level vulnerability

XDI identifies failure and damage thresholds at the level of asset componentry (e.g. electrical or construction elements) to build up an accurate picture of the overall impact of a climate hazard on an individual asset.

Not location exposure only

Simple approaches to physical risk assessment fail to quantify resilience of an asset. Exposure of a hazard is not enough information to plan for mitigation of the effects of climate impacts, or build resilience in future operations.

Climate data

XDI runs multi-terabyte parameter data from the latest IPCC models through statistical engines which generate high fidelity hazard probability distributions.

Not trend data

Heat and precipitation trend data is available in the public domain. An incorrect, though often used approach is to estimate the frequency and severity of climate hazards from these basic metrics. The approach lacks scientific rigor.

Featured use cases

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Banking: Stress testing and scenario analysis

A large banking client sought inputs from XDI to run large-scale Monte Carlo simulations as part of a regulatory climate stress testing exercise. The solution was required across its global residential and commercial lending portfolios. The client also needed to respond to a deterministic scenario prescribed by the regulator.

Corporates: Due diligence for a brownfield infrastructure project

A developer needs to undertake a due diligence assessment of a brownfield infrastructure project (port) it is considering purchasing for a development. It wants to know if there are physical climate change risks that may result in unexpected short-term operational expenses or sooner-than-expected capital expenses that could impact the profitability of the development and their ability to service their loan.

Public data release: supply chain and sub sovereign risk

Financial and economic risks from climate change are consistently undervalued and fail to capture the complex and cascading impact of global warming over 1.5 degrees. To highlight the reality that no single country is ‘safe’, XDI publicly released a dataset comparing the physical climate risk of every state and province in the world.

CASE STUDY: City planning - urban heat

Increasing urban heat is already resulting in adverse impacts on human health and asset performance in Eastern Sydney. These impacts are only going to intensify in the future unless ambient temperatures are reduced significantly through implementation of heat adaptation. Sydney Water - a state-owned institution came to XDI in order to understand the risk excess heat presented now and into the future, and to explore adaption options to address it.

Commercial banking: Analyse your commercial property portfolio

A major Singapore-based bank with a large commercial lending portfolio in the ASEAN region required insights into climate risks in order to meet new regulatory requirements. The portfolio was subject to a range of climate-related hazards.