15 January 2018
MeteoProtect releases white paper
MeteoProtect, a French start-up from the Climate-KIC Accelerator Programme have issued a new white paper about climate change and protection from its major consequences on business, finance or agricultural production.
MeteoProtect identifies a company’s or institution’s weather sensitivities and offers index-based financial products that provide protection when weather conditions adversely impact business or profits or generate additional costs.
MeteoProtect highlighted in their white paper that “70% of firms in industrialised countries are exposed to everyday weather anomalies for a total amount of sales ranging from 25-35% of annual Gross Domestic Product. This means that “unfavourable everyday weather can destroy up to $500bn in the United States and €400bn in Europe each year.”
The agricultural sector has known more frequent extreme weather events such as droughts, reducing gradually the production over the past 40 years. According a survey led by MeteoProtect and ESSCA School of Management, 85% of risk Managers across Europe agreed that weather had an impact on their business. With climate change, “investors see more weather-related profit warnings, and have a greater difficulty reading underlying trends”, mentions a Sustainability Research report from the financial analyst Kepler-Cheuvreux.
MeteoProtect offers a solution;WeatherRisk. With this modelling tool, a company can measure its exposition to weather variability risk in terms of potential losses, over a given period. WeatherRisk enable risk managers to elaborate scenarios to mitigate their risk and adapt their decisions to lower climate impact on their turnover.