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Invert Insights October 27, 2023

AI is the new Firefighter, new climate risk indicators and a record year for CPD.

  • Is AI a new firefighter?
  • New indicators to measure exposure to physical climate risk
  • CDP reports 24% increase in environmental disclosures

Is AI a New Firefighter?

Alberta is introducing artificial intelligence to enhance its wildfire agency’s capabilities in predicting the where and when of wildfires. In the wake of an intense wildfire season, technology is assuming a key role in Canada’s wildfire defense strategy. Recently, the Canadian Space Agency unveiled an investment in cutting-edge satellite technology aimed at improving wildfire monitoring. Additionally, Rogers has revealed its commitment by investing in AI-powered cameras on its cell towers, enabling the early detection and capture of smoke, even before the flames erupt. 

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Given the increasing unpredictability of wildfire behavior, the use of satellite technology and AI has the potential to enhance our understanding of wildfire dynamics, ecosystem health, and the impacts of climate change. This, in turn, can show us the way to more accurate wildfire predictions, thereby reducing the environmental impact as well as safety and public health repercussions. 

New Indicators to Measure Exposure to Physical Climate Risk

Bloomberg and Riskthinking.AI have jointly unveiled science-based physical risk indicators to assist businesses and investors in evaluating climate-related risks, including floods, droughts, and wildfires. These indicators consider climate scenarios approved by the IPCC, providing a comprehensive view of potential outcomes. The solution merges Bloomberg’s data on over one million physical assets and Riskthinking.AI’s climate change projections enabling users to assess risks at the asset level and identify vulnerabilities in supply chains. 

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These new indicators hold the promise for a deep dive into the individual assets of a company. Giving organizations an opportunity to identify specific threats and vulnerabilities to facilitate targeted risk management strategies and investments in mitigation and adaptation measures, which at the same time could increase investor confidence and attract more investment.

CDP Reports 24% Increase in Environmental Disclosures

Companies disclosing environmental impacts through the CDP platform have increased 24% in the last year, now accounting for over 23,000 companies, which represents more than two-thirds of global market capitalization. However, the majority of disclosures remained incomplete, with only 1% of firms providing data on all three of the focus areas: climate change, water security, and deforestation. 

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Reporting environmental impacts has transitioned to an imperative within the business community. It not only boosts stakeholder confidence but also serves as a means to take actionable steps and track the progress of these actions, facilitating continuous evolution. CDP plays a crucial role in helping organizations shape their sustainability strategy throughout their value chain. It offers valuable insights into the practices of suppliers and peers within the same industry. Which, in turn, provides an opportunity for collaboration within and across sectors. 

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