Public Funding for Aitech Cambridge Limited

In recent years, significant progress has been made in bridging the gap between financial risk assessment and climate scenario modelling methodologies. However, most existing approaches to assessing physical and transition risks in the supply chain have yet to provide a comprehensive solution to fill the gap in how physical hazards translate into financial impacts. Moreover, the currently available frameworks fail to consider how the transition can spread out from unexpected regulatory responses, just as climate change could be perfectly nonlinear. Yet, the climate and environmental risks (CER) assessment industry is still open to criticisms for adopting strategies to tackle only longer-term climate impacts, limiting themselves to assessing baseline climate scenarios in the existing risk analysis models. To meet these challenges, AITech Cambridge, in collaboration with CCRM, QuantFoundry and TrackGenesis, presents **_Net0Chain_**_,_ the **first-ever** climate risk analytics framework for SMEs to integrate a holistic approach to risk management, powered by the most sustainable IT governance framework - COBIT5/2019\. The proposed solution will aid SMEs in evaluating the impact of CER on management and credit risk metrics, among other parameters affected by the climate outcome, both in the short and long term, through Self-Organising Maps (SOMs) using artificial neural network (ANN) for climate projection, a rarely used approach adopted by very few climate modelling groups around the globe, only in major developed countries. The transparency should be maintained by using blockchain technologies to determine transparency in the supply chain. This rare application shall bring about the advantages of understanding the uncertainties inherent in all climate models through clustering instead of following ways with standard deviation and searching for the mean of all climate projection models, prone to high degrees of inaccuracy in assimilating the climate variabilities. **_Net0Chain_** could become a powerful tool for banks, insurance, asset management, and investment vehicles, among many other public institutions, to assess the risk of climate impacting the stability of their clients, their portfolios and the management of their assets while reducing any due diligence exposures. Significantly, this project will provide the first organised insight into the advantages of the various value creation models, allowing benefits to be realised at the lowest feasible resource costs while limiting risks. As a result, the findings will be helpful to government agencies, local governments, and other financial institutions working with climate and environmental risk analytics. They can be replicated nationally and internationally.