Hidden Risks in Climate Modeling: How Unverified Predictions Could Impact Lives and Finances
In recent years, climate science has dramatically advanced, bolstered by sophisticated computing and satellite imagery. These innovations have led to the rise of predictive models that assess the likelihood of environmental disasters, such as floods and wildfires, at an unprecedented level of detail even down to individual building lots. Startups developing these models have flourished, backed by significant investment from venture capital and private equity.
Promise and Perils of Predictive Models
These climate models are already influencing crucial decisions in the U.S. and beyond. Companies like Fannie Mae, Aon Plc, Allstate Corp., and Zurich Insurance Group AG, alongside major banks, real estate firms, and public agencies, are utilizing these tools to climate-proof their assets. ...