Glossary of Terms

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Welcome to EarthScan's Glossary of Terms. This is an ever-growing and evolving list of terms that define and give additional context to EarthScan. If you come across any unlisted terms that you would like to see included in the Glossary, please reach out to us at feedback@earth-scan.com. Relevant Knowledge Base articles and external sources are linked, where appropriate.

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Adaptation Adaptation is the process of adapting with climate change. It involves identifying options, capacity-building and taking actions to cope with the impacts of climate change. Adaptation aims to avoid adverse impacts, moderate risk and capture opportunities. It’s formally written into the Paris Agreement and Sustainable Development Goal (SDG) #13 as a critical component of climate action, along with mitigation. Climate Intelligence allows organizations to build robust and informed adaptation plans to protect their physical assets from hazards such as flooding, extreme heat, etc.

AI (Artificial Intelligence) Since the term was first coined in 1956, entire libraries worth of material have been devoted to defining what Artificial Intelligence (AI) is - and they still haven’t reached a consensus. In general use, AI refers to the application of technology that can combine a perception of its environment with typically “human” functions like reasoning, creativity, learning and planning to decide on the best set of actions it needs to take to achieve a goal. 

Algorithm Algorithms are a set of instructions that tell a computer what to do with data.  Almost every single piece of technology uses algorithms to transform data into useful information about the world.

Asset A unit of value with a fixed continuous geographic boundary - these could be buildings, planned assets or, in the future, natural capital or linear assets (like pipelines). 

Asset footprints Asset footprints describe the shape and space taken up by existing physical assets. In Mitiga's asset data model, asset footprints represent the shape and space of existing real world build assets that can be exposed to climate-related risk.

Average Risk Refers to either combined physical risk exposure or hazard-specific risk exposure averaged across an entire portfolio of assets. 

Backtesting Backtesting is the process of verifying the statistical properties of datasets (for example, signals) and providing a quantitative comparison against historical observations using meaningful, carefully chosen error metrics.

Built assets Built assets are existing buildings that are free standing, permanent (non-mobile), man-made, land-based, aboveground structures. Built assets can be characterized by properties such as footprint, height, volume, construction date, construction materials, function, location, energy use, carbon emissions, etc. Built asset properties can be fixed (such as construction date), or can vary over time (such as energy use).

Business as usual Business as usual is one of three future climate scenarios shown on EarthScan. It represents a future where global policymakers put no further policy in place to reduce greenhouse gas emissions and do little to avert physical risk. Organizations face the greatest level of physical risk, but lowest level of transition risk under this scenario. It is one of the three climate scenarios offered by Mitiga in the EarthScan product.

Climate intelligence (CI) Climate intelligence is business intelligence for managing asset-level climate risk. EarthScan transforms climate science into personalized and actionable insights on millions of assets, helping decision makers to understand and quantify climate risk, de-risk decisions, and identify new opportunities.

Climate intelligent organization An organization that integrates climate intelligence into all core decisions to proactively manage climate risk and opportunities across its entire business ecosystem.

Climate-related financial disclosure Climate-related financial disclosure is the process of organizations making information about their climate-related risk publicly available. (Disclosures refer to the publicly available information itself, in whatever format.) Climate risk disclosure aims to support companies to prepare for climate change impacts by recognizing and analyzing how it might affect their operations and identify climate risks and opportunities. EarthScan helps organizations with their internal and external reporting by providing easily downloadable climate intelligence insights across multiple time horizons and climate scenarios which can be easily added into company reports. 

Climate resilience Climate resilience is a measure of the capacity to cope with and respond to climate change (both physical and non-physical aspects); adaptation is the process of adjustments and initiatives we need to make in order to build climate resilience. 

Climate scenario Climate scenarios are analytical tools used to explore the potential impacts of climate change under different socioeconomic conditions. Their purpose is to support and inform decisions that anticipate the physical impacts of climate change and create strategies to mitigate and adapt. Climate scenarios explore different trajectories across the 21st century, based on a range of different potential developments in society and what they mean for human activity and global emissions. They describe plausible climate futures, rather than predict future outcomes, taking into account climate science, social science and economics to project how the evolution of human activity might interact with our climate system. EarthScan can give climate insights across three climate scenarios - Business as usual, Emissions peak in 2040, and Paris Aligned.

CMIP6 (Coupled Model Intercomparison Project) CMIP is probably the most well-known climate science dataset and it is updated every 5-6 years (it is currently on its sixth iteration).  It isn’t a single model of the world’s changing climate so much as several - over 50 modeling centers took part in CMIP6 - that are carefully joined (or coupled) together. EarthScan uses the best-in-class models from CMIP6 that predict future climate change under different scenarios.

Combined Physical Risk Climate change is increasing asset exposure to multiple climate hazards. Combined physical risk describes climate hazard exposure for an asset or portfolio across multiple physical climate risks.

In EarthScan, the combined physical risk category synthesizes all Risk Categories to enable users to make quick comparisons between assets. It is designed to be a starting point for climate-related risk analysis, and highlights assets with the greatest exposure to climate hazards that need further investigation. Users can then delve into other risk categories to get more detailed insights.

CVaR Climate Value-at-Risk is a metric that quantifies the expected climate-risk-related loss (currently only physical risk) for a built asset or a portfolio of built assets. It is represented either as a percentage damage over the asset(s) or as a monetary value (e.g. in dollars). Its computation is based on hazard evaluation at an asset’s location, such as riverine and coastal inundation or extreme wind speed, as well as properties of assets, such as the building types (e.g. commercial, residential, industrial), the presence of basement, or the number of floors.

Damage Curves Damage curves describe the physical vulnerability of assets in relation to the potential impact from climate hazards. They classify an element or set of elements at risk for a physical asset, and estimate the degree of loss to a physical asset from a climate hazard of a given magnitude in the form of a ratio.

EarthScan™ EarthScan is Mitiga's climate intelligence product. EarthScan empowers everyone to discover and understand climate risk on their assets. Using EarthScan, users can baseline, monitor, and anticipate future climate risk on the assets they value, enabling them to de-risk decisions and build a more resilient future.

EarthScan Insights Personalized asset- and portfolio-level physical risk insights, including customizable time horizons, climate scenarios, physical risks, and ratings.

EarthScan Rating™ An EarthScan Rating is an estimate of the overall exposure and impact of physical climate risk on your asset or portfolio. EarthScan Ratings provide globally comparable estimates of climate hazard exposure and direct physical damage to assets across multiple time frames, geographies and future climate scenarios. 

Emissions peak by 2040 Under an ‘Emissions peak in 2040’ scenario, expert guidance suggests that physical climate risk to organizations will increase, as compared to a Paris aligned scenario. Furthermore, late policy action will result in greater levels of transition risks compared to the alternative two scenarios. In this scenario, policy action to curb emissions is delayed; greater, more severe, policy action is required further down the line to compensate; climate risk volatility increases.  It is one of the three climate scenarios offered by Mitiga in the EarthScan product.

ERA5 ERA5 is a reanalysis dataset generated by the European Centre for Medium-Range Weather Forecasts (ECMWF). It assimilates millions of real-world observations into a numerical model, dividing the world into 25 km grid boxes to provide data on a large number of atmospheric variables (with additional characterization given by land and ocean surface variables). The model is frequently updated and holds data going back several decades.  

Exposure Exposure refers to the extent to which a certain asset is exposed to a given hazard. This exposure is defined independently of any features of that asset. For example, an asset might be exposed to flooding hazard, but not impacted by it because it has flood defenses - the flooding exposure happens independently of whether the asset is adapted to cope with floods or not. In the Sixth IPCC Assessment Report, exposure is defined as the existence or presence of human or ecological systems in a place or setting that could experience adverse consequences as a result of a hazard. In an EarthScan context, the amount (intensity, frequency, and duration) of a certain type of climate hazard that happens at a specific asset location is that asset’s exposure to that hazard. So a location that has lots of intense floods has a higher flooding hazard exposure than a location that only has a few minor floods.

Fire weather Fire weather describes meteorological conditions (such as relative humidity, precipitation, wind speed and direction) that are favorable for wildfires to grow and disperse.

Fire Weather Index Fire weather Index (FWI) = The FWI is a meteorologically based index generated by Météo France and the Meteorological Service of Canada and used worldwide to estimate and communicate wildfire danger. Higher FWI values indicate that meteorological conditions are more favorable for triggering wildfires. 

Global climate models Global climate models are used to understand how the climate may change in the future. They embody state-of-the-art understanding of the physics and chemistry of the atmosphere, land surface, ocean, and cryosphere, and how these different climate spheres interact. 

Global climate models represent key physical and chemical processes with mathematical equations that have been discovered through making observations of the natural world, and studying how different climate phenomena relate to and interact with one another. 

Impact (financial) A historical or current quantity or forward-looking quantitative outlook (estimate, projection, or forecast) regarding the financial impact of climate-related risks and opportunities on an organization's financial performance or position. 

Impact (physical) The outcomes, after adaptation & mitigation measures, of hazard exposure combined with vulnerabilities to assets and organizations, including broader, indirect impacts on the social, economic, and ecological systems in which the organization operates. 

Linear assets (in development) Linear assets encompass above-ground, man-made assets whose function is primarily defined by their length. Linear assets represent networked infrastructure that connects people, goods or resources (for example, power and energy). This class includes asset sub-categories such as roads, rails, pipes, power grids and waterways. The attributes, condition and climate-related risk of linear assets can vary from section to section. 

Machine Learning Machine Learning (ML) is a type of Artificial Intelligence (AI) with the capability to learn about the data it is given. We can think of ML algorithms as providing the machine with an approach to solving a set of problems. The algorithms do more than describe a set of problems to answer - they tell computers how to statistically learn about the data. ML is applied to many different problems and data sets, from recommending songs to locating shipwrecks, and is particularly useful for tackling big datasets such as climate data. Earth Science AI applies ML algorithms to climate data to translate it into decision-useful Intelligence. This intelligence is more than just a description and analysis of a certain set of problems contained within climate data. This is one of the reasons why CI goes beyond data and analytics.

Material risk Material risks are risks recognized as having the potential to significantly impact an organization financially. Material risk is a subjective concept, and what is material for one party may not be material for another part depending on factors such as risk tolerance. As a baseline for estimating material risk, we have determined that assets assigned EarthScan Rating C or worse are under material risk. We’ve selected category C as EarthScan’s threshold for material risk based on an evaluation of assets under different A to F ratings across different types of climate hazards for the year 2020. The Category C threshold represents climate-related risk investors need to consider as part of their companies decision-making processes. EarthScan’s climate risk report uses this threshold to filter asset-level material information that supports users to meet reporting requirements on financial climate-related risk. 

Materiality threshold The threshold at which an asset is exposed to material risk is defined as having a EarthScan Rating of C or below.

Natural Capital Stocks of renewable & non-renewable natural resources, which include habitats, species, soils, air, and water.

Natural Capital assets A natural capital asset is an area with a defined geographic boundary that, through its stock of renewable and non-renewable natural resources (e.g., air, water, species, soil) yields a flow of benefits known as ecosystem services. Ecosystem services fall into three main categories: provisioning (e.g., extractable resources such as food, water), regulatory (e.g., pollination, flood control, carbon storage, climate regulation), and cultural (e.g., ecotourism, spiritual or cultural significance).

Nature-based solutions (NBS) Actions that simultaneously provide human and ecosystem benefits. Examples include: restoring wetlands and forests for flood mitigation and carbon sequestration; coastal habitat restoration to protect against storm surges and erosion

Paris Agreement Following negotiations at COP21 in 2015, 191 members of the United Nations signed the Paris Agreement, making a legally binding commitment to limit global average temperature increase to less than 2℃, and preferably to 1.5℃ and put national adaptation plans in place

Paris-Aligned Actions, policy or climate scenarios that are inline with achieving the Paris Agreement goals. The latest IPCC assessment released in 2021 is clear that to limit warming to 1.5°C, we need to halve global emissions by 2030, and reach Net Zero by 2050.  It is one of the three climate scenarios offered by Mitiga in the EarthScan product.

Physical Metrics Physical metrics aggregate modeled and observational data on physical climate variables into a single, evenly-spaced time series. The datasets we use collect quantitative information on a range of variables that relate to physical hazards. Climate scientists define physical variables as measurable attributes of a physical system.  This includes climatic variables such as temperature, precipitation, wind speed and, hydrological variables river discharge, runoff rates, wave height, inundation depth.  Changes in these variables imply systematic changes to climate processes, which may indicate the probability of exposure and the potential range of physical impact. However, climate data is often fragmented and uneven. To generate our signals, we need to compile modeled and observational data into a single time series. For example, the metric “daily max temperature” time series consists of one value per day.  

Physical Risk Physical risk describes the potential for negative consequences, such as loss and damage, from climate change impacts and climate-related hazards.

Portfolios Collections of assets in EarthScan created by users or curated by Mitiga.

Probabilistic relates to the likelihood that something will happen. Probabilistic methods are based on probability theory, and incorporate the possibility of chance or random variation. 

In terms of decision-making, probabilistic information means that there is uncertainty about future events, but there is enough information to judge whether or not an event is likely, and inform decisions on this basis.

Probabilistic modeling Probabilistic modeling is a modeling approach that incorporates randomness to calculate a large set of possible outcomes. Probability models go beyond what has occurred within the available historical data by taking into account new circumstances and uncertainties in order to avoid underestimating risk. 

Probabilistic models represent variables within the model as probability distributions, rather than discrete values. In terms of decision-making, probabilistic modeling incorporates uncertainty about future events, while still providing enough information to judge whether or not an event is likely, and inform decisions on this basis.

Probability distributions Probability distributions are a statistical function that describe the full range of possible values and potential outcomes for a specific metric (such as maximum temperature), over a specific range (for example, over time). 

Representative Concentration Pathways (RCPs) Scenarios that describe, based on climate science and atmospheric physics, how greenhouse gas emissions interact with the climate system. RCPs are used in conjunction with Shared Socioeconomic Pathways (SSPs) to develop future Climate Scenarios

Return on Investment (ROI) A performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments. ROI tries to directly measure the amount of return on a particular investment, relative to the investment’s cost.

Return period A metric widely used to describe the probability of climate hazard events occurring, such as flooding. Return periods indicate the probability of an event of a given extent occurring each year. For example, a 100-year flood has a 1/100 (or 1%) probability of happening every year. 

Risk Risk is the potential for adverse consequences for human or ecological systems (lives, livelihoods, health and wellbeing, economic, social and cultural assets and investments, infrastructure, services provision, ecosystems and species.) Risk is a result of interactions between a hazard and the levels of vulnerability and exposure of a human or ecological system.

The concept of risk can apply to both impacts of and responses to climate change. This means that it takes into account both the physical impacts of climate change and direct and indirect socioeconomic responses to climate change.

Risk appetite The amount of risk and types of risk an organization is prepared to tolerate in order to achieve specific business objectives 

Risk capacity The amount of risk and types of risk an organization can support or cope with in pursuit of business objectives

Risk Categories Each signal relates to a specific Risk Category in EarthScan. A Risk Category describes a distinct type of hazard. Currently, our signals focus on the properties of hazards that impact the built environment. Signals are available across the following Risk Categories:

• Flooding (riverine & coastal)
• Wind risk
• Heat Stress
• Precipitation Risk
• Drought
• Wildfire

Risk exposure Is the measured/quantified potential for loss/damage as a result of an activity or event. It depends on the likelihood and the intensity of a specified hazard occurring in a specified location within a specified time period. 

Risk perception A subjective judgment on how likely risks are to happen and how negative their consequences might be. Risk perception informs how a person or organization approaches climate risk and the actions they take. 

Risk profile Current level and distribution of risk for a given entity across various risk categories (Portfolio of Assets/ Assets and Portfolios of an organization/supply chain)

Risk target The optimal level of risk determined by an organization to enable achievement of a specific business objective

Risk tolerance An organization's risk tolerance range describes what the organization considers acceptable risk. Used as a key measure for making risk-based decisions and prioritizing and targeting resources.

Risk tolerance threshold The risk tolerance threshold marks the point at which risk that exceeds the amount an organization is prepared to tolerate.

Risk, climate / climate-related risk The potential negative impacts of climate change on human or ecological systems. Climate-related risk is the result of dynamic interactions between climate-related hazards and the exposure and vulnerability of human or ecological systems. It integrates the likelihood of exposure to a hazard and the magnitude of its impact. It is dynamic in the sense that these three elements can change over time with changing socioeconomic or climatic conditions. The concept of climate-related risk applies to the impacts of and responses to climate change. It takes into account both the physical impacts of and direct socioeconomic responses to climate change.

Risk, emergent/emerging A term that covers risks where changing conditions have led to 1) risk being newly created, 2) newly identified, 3) changes or increases in levels of risk or 4) where knowledge about this risk is becoming widespread. This can include risks that have been consistently present, but we were mostly unaware of (so the change is in the knowledge of and communication about that risk) and/or where physical and social activities combine to change the conditions and context of risk. Climate risk contains elements of all of these and can be considered a “fully emerged risk” where the scientific and policy consensus is that we need to take action.

Risk, transition Transition risk describes the potential negative consequences associated with transition to a low carbon economy. This includes risk from policy, legal, technology and market changes to address mitigation (and adaptation) requirements related to climate change.  

Scenario A description of how the future may develop based on a coherent and internally consistent set of assumptions about key driving forces and relationships. Note that scenarios are neither predictions nor forecasts, but are used to describe possible future systems and explore their consequences.

Shared Socio-Economic Pathways (SSPs) SSPs are scenarios that describe possible social and economic development between now and 2100. They project pathways the world might take under different national policies relating to climate change. For example, SSP1 refers to a green, sustainability-driven society, and SSP5 refers to a fossil-fuelled, high economic growth. These pathways are central to incorporating uncertainty on future social and economic global developments into decision making.

Signals The term signals describe the data outputs of our climate hazard exposure models. Signals are decision-useful data relevant to their physical assets. They describe the damage- and disruption-causing properties of a specific hazard with respect to their magnitude or intensity, in order to estimate exposure to those properties at a specific location. Damage focuses on the aspect of hazards that result in direct damage and replacement costs to built assets, while disruption focuses on the aspect of hazards that result in direct interruptions in the operational ability of a physical asset to function.

TCFD The Task Force on Climate-related Financial Disclosures (TCFD) was created by the Financial Stability Board (FSB) in 2015 in response to a request from G20 Finance Ministers and Central Bank Governors to review how the financial sector might be impacted by climate change, and how it can build resilience against climate-related risk. The Taskforce developed a series of recommendations for organizations to follow on climate-related financial disclosure. 

Vulnerability Vulnerability describes the degree to which pre-existing conditions or characteristics of human and ecological systems interact with hazards and exposure to determine the level of adverse impacts they may experience. Vulnerability is a measure of how susceptible a certain asset is to exposure to a given hazard. This is defined independently of exposure to hazard, and is intrinsic to the asset at hand. For example, an asset that has extensive flood defenses has lower vulnerability to flooding than an asset that has only minimal flood defenses.