• Clarity AI’s new solution covers more than 3 million assets across over 17,000 companies.
• The platform assesses exposure across 16 climate and nature hazards, nine climate scenarios, and five time horizons through 2050.
• Banks and asset managers can use the data for risk management, lending decisions, and climate-related disclosure requirements such as Pillar III.

Climate Risk Moves Onto the Balance Sheet

Clarity AI has launched an asset-level physical climate risk solution for banks, asset owners, and investors, as extreme weather becomes a direct financial risk for global portfolios.

The sustainability data and analytics company said the new tool gives financial institutions more granular insight into climate-related physical risks across individual assets. It covers hazards, scenarios, and timelines that can affect asset values, credit exposure, insurance assumptions, and capital allocation.

The launch comes as institutional investors face rising pressure to measure climate exposure with the same discipline used for other financial risks. According to Clarity AI, more than 75% of institutional investors expect physical climate risk to affect asset prices within five years. More than half say extreme weather events are already shaping investment decisions more than in previous years.

That shift matters for boards, lenders, and portfolio managers. Floods, heat stress, water scarcity, wildfires, and other hazards no longer sit in long-term risk registers. They can affect operations, collateral values, supply chains, and the cost of capital.

Coverage Across 3 Million Assets

Clarity AI’s Physical Risk solution covers more than 3 million assets across more than 17,000 companies. The company said this provides 22% broader company coverage than the leading market alternative.

The platform also includes more than 2 million material assets. These are assets that Clarity AI identifies as critical to a company’s core operations through its proprietary framework. The company said this doubles the coverage offered by leading competitors and helps reduce blind spots in physical risk assessments.

For investors, that level of detail can change how risk gets priced. A company-level view may show overall exposure, but it can miss where operational risk is concentrated. Asset-level analysis can reveal whether key plants, logistics hubs, data centres, mines, or production sites sit in areas exposed to chronic or acute climate hazards.

The solution assesses climate-related physical risks across 16 climate and nature hazards, nine climate scenarios, and five time horizons through 2050. That range gives institutions flexibility for different investment strategies, risk models, and regulatory needs.

Clarity AI said users can also upload proprietary asset data or request coverage on demand. That allows banks and investors to calculate exposure for assets and portfolios beyond the standard universe.

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Built for Disclosure and Lending Decisions

The tool also reflects the growing regulatory demand for climate risk transparency. Banks and investors face rising expectations from supervisors, clients, and shareholders to show how climate risks move through portfolios.

Clarity AI said the solution provides transparency from portfolio level down to company and individual asset level. It also retains fund look-through capabilities for asset managers. For banks, the company said the platform can support climate-related disclosure requirements such as Pillar III.

The methodology is built on RiskThinking.AI’s approach, which has been validated by Canada’s Office of the Superintendent of Financial Institutions. That regulatory connection gives the tool relevance for institutions working to align climate risk analysis with supervisory expectations.

“The conversation around climate has evolved, and it’s no longer enough to simply know a risk exists. Investors need to understand its financial implications and measure it with the same rigor as any other financial risk,” said Alice Borgonovo, Climate Solutions Lead at Clarity AI. “Unlike existing solutions, we are bringing to market the granularity and transparency investors need to make informed investment, lending or strategic decisions based on comprehensive physical risk data”.

What Investors Should Watch

For C-suite leaders, the launch points to a broader change in sustainable finance. Climate risk data is moving from ESG reporting teams into credit, risk, treasury, and investment committees.

That matters because physical risk can affect both valuation and governance. Boards may need to explain how they assess vulnerable assets. Lenders may need stronger evidence when pricing loans or setting covenants. Asset managers may face closer scrutiny over how climate hazards affect long-term returns.

The next phase of climate risk management will depend less on broad corporate estimates. It will rely more on data that tracks where assets are located, how critical they are, and how exposed they may become under different climate pathways.

Clarity AI’s platform enters that market as financial institutions prepare for tougher disclosure rules and more climate-aware capital allocation. For global investors, the message is clear: physical climate risk is no longer a distant scenario. It is becoming a measurable input in financial decision-making.