Starting today, financial institutions, corporations, NGOs, regulators and academics can access the code behind OS-Climate’s tools to support climate-aligned financial decisions Developed in collaboration with BNP Paribas, Allianz, Airbus, Amazon, Red Hat, Ortec Finance and The Linux FoundationSupports OS-Climate’s mission is to provide the data and tools necessary for the +$5 trillion annual investment required to meet the goals of Linux. Paris Agreement.
New York July 20, 2022 – OS-Climate from the Linux Foundation, the non-profit organization providing data and open-source software tools to enable the global shift to climate-aligned finance and investing, published today for the public collaboration three essential analytical tools to address the climate crisis.
The three tools Physical risk and resilience, Portfolio Alignment and Transition analysiswere developed in cooperation by the members of OS-Climate, led by BNP Paribas, Allianz and Airbus respectively.
With today’s public release, the development of the OS-Climate tool enters an exciting new phase. Enabled by cloud services provided by Amazon and Microsoft, the door opens to the global community of academic institutions, government agencies, modelers and software developers for more powerful collaboration in building tools and Data Commons, a library of data and metadata suitable for use with OS-Climate’s toolset.
In addition to Airbus, Allianz and BNP Paribas, the financial services sector, technology sector, financial data and OS-Climate member companies include, Amazon, BNY Mellon, EY, Federated Hermes, Goldman Sachs, London Stock Exchange Group, Microsoftthe Called by the UN Net-Zero Asset Owner Alliance ($10.6 trillion assets under management), Ortec Finance, Red Hatand S&P Global.
Truman Semans, CEO of OS-Climate, said, “These tools will generate the refined data and actionable insights needed by pension funds, asset managers and banks to quickly align their investments and lending with net zero and resilience goals. They can be used not only by core members of the Glasgow Financial Alliance for Net Zero (GFANZ), but also by the rest of the global financial community.
The Linux Foundation’s community-led open source development approach, combined with strong, independent governance processes and methodological governance oversight, provides the transparency, trust, access, and inclusion needed to all those whose investment decisions have an impact on climate change.
BNP Paribas leads the development of Physical risk and resilience management tool which enables financial and non-financial stakeholders to identify and quantify climate resilience risks, through asset vulnerability models that use prediction of the probability and severity of extreme weather events.
Allianz, with the support of OrtecFinance, leads the development of Climate Portfolio Alignment Toolwhich helps financial actors align portfolios at the individual asset and loan level with the Paris Agreement target temperature increase of 1.5°C.
The Transitional analysis tool developped by Airbus will enable companies to model, test and conduct scenario analyzes for climate-aligned strategic decisions. This is the key to enabling the large-scale transition of real-economy businesses to Net Zero and resilience through climate-aligned investments in R&D, capital projects, other infrastructure and chains. supply.
Commenting on its leading role in the development, Laurent David, Deputy CEO of BNP Paribas, said: “Robust and accessible data is essential to implement material climate policies and give credibility to sustainable finance. They are essential to enable financial institutions to set priorities, define objectives and monitor their achievement. As a global financial institution, we can play an important role in fostering industry collaboration to help manage climate risk and increase investment in climate-aligned businesses and projects. Thanks to our collaboration with OS-Climate, we can develop open source tools based on appropriate data much faster than we could alone. This will ultimately promote transparency and trust.
Günther Thallinger, member of the management board of Allianz SE said, “Allianz’s collaboration with OS-Climate reflects our commitment to supporting and integrating climate-aligned investments and the critical transition to net-zero greenhouse gas emissions. We will continue to partner with a growing financial sector movement to harness the value of data that we, as an industry, will use to transform our commitments into change in the real economy.
Robert Litterman, former president of the Commodity Futures Trading Commission (CFTC) Weather-Related Market Risk Subcommittee, said: “This platform could really be a game-changer. The Linux Foundation’s approach is unique in creating public goods that serve a wide range of public interests. This platform will accelerate innovation by commercial vendors who can build on the “pre-competitive” layers of data and technology that OS-Climate is creating. It can also help advance the multiple objectives of financial regulators in managing risk in the financial system, particularly in terms of generating meaningful and comparable information on climate-related risks from companies.
Margaret Kuhlow, Head of Financial Practices, WWF International, said: “Addressing the deep and complex crises of climate degradation and nature loss means aligning global financial flows for a net-zero, nature-positive economy. This relies on securing good, actionable quality data, which is too big of a challenge for any single institution or company to tackle alone. By supporting a systematic approach to delivering high-quality open data on climate and nature-related risks, and integrating it with standard financial data, OS-Climate could help accelerate the development of robust data solutions that enable financial institutions, technology companies and leading data business enterprises to contribute to a fairer, greener and more resilient future.
The tools will use OS-Climate Data Commons, led by Red Hat, which will act as a public enterprise and other climate data service and has enabled OS-Climate to significantly advance its technical roadmap announced at the COP26. The development of Data Commons, in collaboration with organizations such as ClimateArc, will meet the financial community’s urgent need for transparent, consistent and interoperable data.
The Linux Foundation’s OS-Climate is a groundbreaking initiative creating a transparently governed public service of open data and open source tools for climate-aligned investment, business, and finance regulation. OS-C uses the open collaborative approach that delivered rapid COVID vaccines, applying it to address data gaps, now stalling capital’s rapidly scalable transition to a resilient Net Zero economy.
Members bring their data scientists, modelers, and software developers to cooperative projects building OS-Climate Data Commons, a federated library of enterprise and factor data libraries, and analysis tools to derive actionable metrics crucial for asset allocation, portfolio construction, security, credit analysis, corporate engagement, strategic planning and transition investment by companies and industry oversight financial. For more information, visit OS-Climate.
Members and community
Asset owner, asset manager, banking, technology, financial data and member companies of OS-Climate are Airbus, Allianz, Amazon, BNP Paribas, BNY Mellon, EY, Federated Hermes, Goldman Sachs , KPMG, London Stock Exchange Group, Microsoft, the Net Zero Asset Owner Alliance (10.6 trillion assets under management), Ortec Finance, Red Hat and S&P Global. NGOs and academic members include CPI, Open Climate Foundation, Polytechnique and the World Benchmarking Alliance. Research NGOs sharing cutting-edge human capital and knowledge with OS-Climate include the World Resources Institute, RMI and the London School of Economics through the Transition Pathways Initiative. Other data partners include Jupiter Intelligence, riskthinking.ai and Urgentem.
About the Linux Foundation
Founded in 2000, the Linux Foundation and its projects are supported by more than 2,950 members. The Linux Foundation is the world’s leading hub for collaboration on open source software, hardware, standards, and data. Linux Foundation projects are essential to global infrastructure, including Linux, Kubernetes, Node.js, ONAP, Hyperledger, RISC-V, and more. The Linux Foundation methodology focuses on leveraging best practices and meeting the needs of contributors, users, and solution providers to create enduring models of open collaboration. For more information, please visit linuxfoundation.org.
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