right. based on science
right. based on science is a data provider founded in August 2016, which measures a single economic entity’s contribution to manmade climate change. With a team of experts with backgrounds in law, science, economics, psychology and mathematics, right. is devoted to the development of the X-Degree Compatibility (XDC) Model. The XDC Model calculates science-based climate metrics based on latest climate research and regulatory requirements, in order to deduct an entity’s XDC.
Due to the increasing severity of climate change, costs derived from physical as well as financial damages are expected to increase in the light of the climate crisis. These costs will soon be regarded as "material". Material risks are those which have the ability of affecting a company's financial health. Since the materialization of this risk has never been thoroughly detected, traditional risk management processes are not fit for carrying out forward-looking determinations. Thus, a new set of processes, models and metrics is needed to successfully manage climate risk. The challenge in generating such processes, models and metrics is to evaluate corporate strategies under different socio-economic transition scenarios in their interaction with different climate scenarios regarding their resilience to climate-relevant risks. The incorporation of climate scenarios is an essential element in the creation of such models.
The Solution and non-space benefit
The XDC Model allows to look at different future scenarios through the direct climate modeling in the second section of the calculation. For the calculation of the XDC, the company’s emissions are first compared to its contribution to gross value added. Based on global gross value added, this emission intensity is extrapolated to all companies by 2050, resulting in the amount of emissions that would be released into the atmosphere if all companies were as emission-intensive as the company under scrutiny. In the second step, the XDC Model calculates the effects on the greenhouse gas concentration in the atmosphere, models the effects on the radiation force and, finally, models climate sensitivity on global warming, based on findings of the Intergovernmental Panel on Climate Change ("IPCC"). Results of the XDC Model are delivered in °C numbers. Thus, the innovative power of the XDC Model lies the dynamic intersection of socio-economic and climate scenarios.
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