Quantifying Future Climate Risk: From Data to Decisions
Our hyperlocal climate projections for Boston reveal a significant divergence in future temperature and precipitation patterns, enabling asset managers and insurers to precisely quantify long-term physical risk under different global emission scenarios.
The Challenge: Pricing Long-Term Risk
Climate change is no longer a distant threat; it's a measurable financial risk impacting every long-duration asset. Traditional risk models often lack the granular, forward-looking data needed to accurately price this risk into real estate, infrastructure, and insurance portfolios.
The iLika Solution: Hyperlocal Clarity
iLika's Geospatial platform translates complex IPCC-level climate models into hyperlocal, asset-level projections. We empower businesses to see the future of their physical locations and make data-driven decisions on risk, strategy, and capital allocation today.
As a major coastal economic hub with a mix of historic and modern infrastructure, Boston serves as a critical testbed for assessing climate vulnerability. Our analysis projects future conditions through 2098, providing a clear view of the challenges and opportunities ahead.
Visualizing Boston's Future: A Tale of Four Scenarios
We modeled outcomes based on four internationally recognized Representative Concentration Pathways (RCPs), from aggressive climate action to a business-as-usual approach.
Best Case (RCP 2.6)
Aggressive global emissions reduction, limiting warming.
Moderate Action (RCP 4.5)
Emissions peak mid-century then decline.
Delayed Action (RCP 6.0)
Emissions peak late in the century.
Business as Usual (RCP 8.5)
Continued high emissions with no major policy changes.
Key Projections by 2098 (vs. historical average)
From Climate Data to Business Implications
Real Estate
- Increased operational costs from higher demand for summer cooling (HVAC strain).
- Higher capex for retrofitting buildings to withstand more extreme weather.
- Elevated flood risk for coastal and low-lying properties, impacting valuations.
Insurance
- Necessity to re-price property, casualty, and flood insurance policies.
- Increased frequency and severity of claims related to heat damage and flooding.
- Opportunity to develop new parametric insurance products for climate perils.
Infrastructure
- Greater strain on stormwater drainage systems due to intense rainfall events.
- Heat stress on public transit (rail buckling), energy grids, and roadways.
- Urgent need for climate-resilient planning in all new public works projects.
Unlock Your Climate Advantage
See how iLika Geospatial can provide a custom climate intelligence solution for your specific assets and locations.
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