Every year around this time, thousands of meteorologists descend on a city somewhere in the U.S. This year, it’s Phoenix, Arizona. They convene for the annual meeting of the American Meteorological Society (AMS) to share the latest research in the fields of meteorology and climatology.
TCS’s Chief Technology Officer Dr. Terence Thompson is there to present some of our latest work, and reports that the field of climate economics is booming, consistent with what he observed at the American Geophysical Union (AGU) conference last month (December 2018).
Why is there so much academic attention on climate economics all of a sudden? Because it’s never been more obvious that the effects of climate change on financial systems need to be understood immediately in order to build resilience to the climate of today and the climate of the near future.
“Understanding and Building Resilience” is actually the theme of the AMS meeting this year. The conference is filled with talks on extreme events. Generally, businesses and social structures are well-adapted to average events, and the extremes are what cause the most disruption.
TCS’s Chief Technology Officer, Dr. Terence Thompson, spoke on just this topic. His presentation, Extremes Analysis Identifying Risks and Opportunities for Companies and Regions, showed how it’s now possible to quantify financial risks for businesses.
According to Dr. Thompson, “Extremes analysis enables companies and regions to understand how to mitigate their risks and take advantage of opportunities for economic growth.” He further pointed out that without a quantified understanding of financial impacts, costs and benefits of resilience actions can’t be estimated.
Dr. Thompson presented techniques at the core of the Climanomics™ analytics engine including multi-model ensemble statistics, specialized climatological driving variables derived from these statistics, and econometric impact functions linking financial factors to the driving variables. Each of these elements is localized to company assets involving both physical and human capital, as well as their roles in company financial performance.
If you are attending the 2019 AMS meeting, please say hello to Terry. Climanomics™ is his favorite subject, and he’d love to discuss it with you!
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