Finadium featured the launch of Scientific Climate Ratings’ Sovereign Climate Risk Ratings, a new framework designed to quantify the long-term macroeconomic impact of climate change on sovereign economies and translate climate science into decision-grade financial metrics.

The article highlights how the ratings provide investors, banks and policymakers with a forward-looking measure of sovereign climate exposure by combining scientific research from the EDHEC Climate Institute with financially interpretable outputs.

Key features of the new ratings include:

• Coverage of 191 countries and more than 3,400 subnational regions, capturing regional differences that influence national economic performance.
• Probability-weighted climate assessments across nine climate pathways, producing an expected macroeconomic impact that can be directly integrated into financial models.
• Standardised sovereign ratings from A to G, enabling consistent comparison of climate risk across countries and over time.
• Forward-looking macroeconomic projections for 2035 and 2050, helping investors, financial institutions and governments better understand structural climate risk before it is reflected in market pricing.

The Sovereign Climate Risk Ratings provide a transparent, science-based framework for assessing how chronic physical climate risks are expected to affect long-term economic growth and sovereign fundamentals.

Read the full article here.