Market Insight: Physical Risk In Private Markets Moves Beyond Risk Identification
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Executive Summary
Physical climate risk assessment has matured significantly across private markets, with leading firms largely solving the challenge of identifying and quantifying asset-level exposure. Verdantix research finds that scenario analysis, third-party climate data and asset-level risk mapping are now widely adopted among the largest general partners (GPs), making physical risk assessment a standard component of investment risk management. As these capabilities become more common, the focus is shifting from risk identification to generating decision-useful intelligence. The next frontier is translating physical climate risks into financially material impacts, understanding dependencies across assets and value chains, and supporting adaptation planning. As a result, competitive differentiation is moving away from risk measurement and towards informing investment decisions, portfolio management and value creation.
About the Authors
Felicity Laird
Principal Analyst
Felicity is a Principal Analyst at Verdantix, where she helps financial institutions and technology vendors navigate the evolving climate finance data and analytics landscape....
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Ryan Skinner
Research Director
Ryan is a Research Director at Verdantix, where he leads a team of analysts delivering research, data and advisory services that help clients navigate the fast-evolving landsc...
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