What does it take to start using climate services?

1. A basic understanding of how different climate change effects may affect services and assets
   • If this is missing or weak >> inform yourself via public information channels or finance sector climate groupings or invite a consultancy for an awareness-raising project
   • The use of climate services should be embedded in wider scoped integration of climate change in risk management. Some first aid for ‘how to’ can be found here and here
2. Identify high priority themes and other possibly relevant themes
   • This can be realized by (1) emulating peers (but you still need own data), (2) joint working group of like minded banks (and other relevant actors), (3) sparring with a consultancy – for example using the Acclimatise AWARE ™ tool for risk scanning can help to elucidate the scope of project based risks
3. Specify the requirements of the climate service for high priority themes regarding better managing risks or developing new financial products, include quality measurement and rating
   • ponder to either use an independent climate service broker to produce a first specification and search for matching climate service providers, or ..
   • Agree to co-design with a climate service provider, possibly supported by a consultancy (with understanding of both the sector/company risks and climate change impacts)
   • In cooperation with a broker, climate service provider, and/or consultant use the product matrix to sort your basic choices

How the matrix works:
The climate service product matrix groups CS into four main types: Maps and Apps (M&A), Sharing Practices (SP), Expert Analysis (EA), and Climate-Inclusive Consulting (CIC). In practice, not all CS fit neatly into one category. Instead, there are two continuums where along which a CS can be positioned: (1) generic to specific, and (2) focused (on climate) to integrated.

M&A: The purpose is to arrange quick and cheap access to relevant projections and basic climate data, which can make individual and collective decision processes more robust and objective. Central in the provision of ‘maps & apps’ are meteorological and research institutes, and usually provision is open and free of charge.

SP: Actors share knowledge and information, and can thereby be both producers and users of climate services. Even though there is usually also service provision, especially the individual and social learning process is important. The motivation for sharing will be in common interests, e.g. regional or sectoral cooperation, whereas the contributors can be diverse, including both private and public sector actors. Contributed information will be also from outside the climate realm, e.g. concerning engineering or public health. Actors will tend to carry each their own cost, but weighted cost sharing or charging is possible. SP may often have building blocks taken from or based on M&A.

EA: Customized services, often based on models, tools or methodologies, and provided as a commercial product or as charged public service, even though also uncharged provision occurs (e.g. when based on public duty). Products focus on climate services proper and often concern a particular issue or effect (indicators, damage, etc.) EA will often use M&A and/or SP as input to the own service product. As for SP involved information can extend well beyond the climate realm, while impacts can (should) be expressed in variables from the user’s decision domain (e.g. expected % change of value of affected assets)

CIC: On the one hand this type of service can entail non-routine advice, in which EA and/or SP products may have been used, but the advice character is the dominant feature. Moreover, this type of service can be (part of) a portfolio of much wider scoped advice, concerning e.g. engineering, strategic planning, new financial product design, etc. Especially this latter type of integrated or absorbed climate service is expected to abound, getting somehow used by many consultancy firms.