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When it comes to assessing the risks of climate change, Standard & Poor's has a new metric to look atand it's a pretty good one.
The company's Global Climate Center of Excellence on Tuesday announced that it has added a new category to its list of risk gauges, one that takes into account the effects of climate change on physical risks such as wildfires, droughts, and rising sea levels, the Wall Street Journal reports.
The new measure, which the Journal notes is based on a model developed by S&P's Global Climate Center in partnership with the Potsdam Institute for Climate Impact Research, puts the cost of climate change's effects on financial markets at a quarter of what it was just five years ago.
In a press release, S&P says the new measure will help it better predict the financial impact of climate change and help it make more informed investment decisions.
The new measure is based on a model developed by S&P's Climate Center in partnership with the World Meteorological Organization and the Potsdam Institute for Climate Impact Research, the Journal notes.
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