As extreme weather events intensify across global markets, physical climate risk is shifting from a disclosure exercise to a core component of enterprise strategy. In response to rising investor and regulatory scrutiny, ERM has partnered with Jupiter Intelligence to integrate advanced climate analytics into business planning and capital allocation frameworks.

The collaboration combines science-based hazard modelling with operational advisory capabilities. The objective is to help organizations convert forward-looking climate projections into structured resilience strategies that inform investment decisions, governance processes, and enterprise risk management systems.

From Scenario Modelling to Decision-Grade Analytics

Across infrastructure, manufacturing, and financial services, companies face growing expectations to quantify exposure to floods, storms, heat stress, and other climate-related hazards. Physical climate risk is increasingly linked to asset valuation, insurance costs, credit assessments, and long-term financial performance.

Jupiter Intelligence provides asset-level climate analytics designed to assess exposure under multiple future scenarios. These models enable companies to evaluate how physical risks may affect operations, property values, and revenue streams over time. ERM integrates these outputs into client strategies, translating projections into structured adaptation plans and investment roadmaps.

According to Michael Mangiante, Partner and Global Co-Lead for Climate Risk and Resiliency at ERM, organizations are moving beyond high-level climate reporting toward detailed assessments of operational and portfolio vulnerability. The integration of analytics and advisory support aims to produce actionable outcomes rather than standalone risk reports.

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Applications Across Finance and Industry

The partnership has already been applied in sectors where long-lived assets face material climate exposure. In finance, ERM and Jupiter have conducted portfolio-scale hazard assessments for infrastructure investors and asset managers. These analyses support due diligence processes, capital deployment decisions, and prioritization of adaptation investments across geographically dispersed holdings.

Within manufacturing, climate risk insights have been embedded into operational resilience planning. This includes evaluating site-level exposure, refining insurance strategies, and strengthening supply chain continuity frameworks. By incorporating physical risk into enterprise systems, companies are better positioned to anticipate disruptions and protect long-term asset value.

Rich Sorkin, Co-Founder and Chief Executive Officer of Jupiter Intelligence, emphasized that understanding climate exposure must quickly translate into resilience action. The partnership is structured to bridge the gap between climate science and practical business implementation.

Governance and Capital Allocation Implications

The collaboration reflects a broader governance shift. Physical climate risk is now a board-level consideration that influences capital allocation, infrastructure planning, and risk oversight. Regulatory bodies are tightening reporting requirements, and institutional investors are seeking more robust climate analytics to assess portfolio resilience.

Organizations that fail to quantify and address physical exposure may face rising insurance premiums, asset impairment risks, and increased investor scrutiny. Conversely, firms that demonstrate disciplined climate risk management and adaptation planning may strengthen their access to capital and maintain operational stability.

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Toward Integrated Climate Risk Management

The ERM and Jupiter Intelligence partnership signals a maturation of climate risk management practices. Rather than treating physical climate exposure as a peripheral ESG metric, companies are embedding hazard analytics into financial modelling and strategic decision-making.

As extreme weather events become more frequent and economically disruptive, the integration of predictive analytics with advisory execution offers a framework for turning risk visibility into structured resilience investments. In doing so, businesses can align environmental risk management with long-term enterprise value protection and competitive positioning in a climate-constrained economy.

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