---
title: What is the methodology behind Climate Value-at-Risk in EarthScan?
description: Learn more about Climate Value-at-Risk in EarthScan and how it is calculated
---

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# What is the methodology behind Climate Value-at-Risk in EarthScan?

## Learn more about Climate Value-at-Risk in EarthScan and how it is calculated

Mitiga has developed a suite of Climate Value-at-Risk (CVaR) metrics that provide a scientific framework for determining climate risk enabling companies to measure and manage their climate risk. 

CVaR estimates the percentage of direct damage to an asset depending on the intensity of a climate hazard event. For EarthScan Ratings, CVaR is incorporated into the extreme wind, riverine and coastal flooding Ratings, directly linking the magnitude of wind and flooding events with quantified estimates of physical damage to built assets.

CVaR impact metrics provide a scientific framework for determining climate risk, enabling companies to measure and manage their climate risk exposure. CVaR translates climate hazard probability metrics into estimates of potential damage by statistically estimating asset-level damage across a range of climate hazards, scenarios, geographies, and time horizons. To calculate CVaR, our financial modelling approach utilises damage curves to connect climate hazard exposure to asset-level vulnerability.

Learn more about the CVaR methodology in the [EarthScan Ratings Methodology Overview](https://knowledgebase.earth-scan.com/hubfs/EarthScan_Combined%20Signals%20%26%20Ratings%20Methodology.pdf?hsLang=en).

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