
Where others see risks, you see opportunities to make your grids more resilient
With Location Risk Intelligence, you can identify climate risks early and make better-informed decisions.
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Extreme weather events such as storms, floods or heatwaves have become some of the biggest threats to energy infrastructure worldwide. In the US, for example, each resident experiences an average of eight hours of total power outage per year.
According to an Associated Press analysis, the number of weather-related power outages in the US has more than doubled over the past two decades.* At the same time, the shift towards renewable energy demands enormous investment – which is increasingly exposed to climate-related risks.
In the prestigious Global Risks Report by the World Economic Forum, climate risks represent four of the top five business risks for the coming decade. In view of this outlook, those who aim to safeguard their investments, networks and operational security will benefit from a data-driven strategy.
With Location Risk Intelligence by Munich Re, you can assess your organisation’s exposure to climate risks at individual locations – and build a solid foundation for resilient decisions in the energy sector.
Source: *AP analysis based on data from the US Department of Energy (DOE), published in EPRI Journal, 2022
The five biggest challenges in the energy and utility sector – and how to turn them into strengths
Today, climate risks are among the most critical business risks in the energy sector – from the operation of individual assets to large-scale security of supply. Extreme weather events, regulatory pressure and long-term investment decisions call for a new form of management: data-driven, resilient, forward-looking.
With Location Risk Intelligence by Munich Re, you can turn these challenges into strategic advantages – scalable, science-based and location-specific.
1. Protect your infrastructure – and systematically increase its climate resilience
Much of today’s energy infrastructure – from substations and transmission lines to wind farms, solar parks and hydroelectric plants – was planned under the climatic conditions of the past. But heat, heavy rainfall and storms are increasingly putting these critical systems under pressure. The result: outages, high repair costs and jeopardised energy security.
How to protect your infrastructure effectively:
- For risk managers: Identify weather-related vulnerabilities in your networks with detailed risk analyses based on over 80 scientifically validated hazard indicators. Plan targeted mitigation measures – from structural interventions to system redundancies in critical infrastructure.
- For planners and network operators: Use future climate scenarios (SSP/IPCC) up to the year 2100 to assess your sites and develop robust strategies for new builds, upgrades or decommissioning.
- For decision-makers: Prioritise your investments using site-specific projections of extreme weather event intensity – such as peak wind speeds or flood depths – with a 100-year return period. This enables you to protect critical assets, enhance resilience and meet sustainability and energy security requirements.
2. Make sound decisions relating to locations and investments – based on reliable climate data
New energy projects mean long-term capital commitment – whether it’s a wind farm, battery storage or grid modernisation. But climate change significantly alters the risk landscape of many locations. Poor planning can lead to failed investments, approval delays or supply gaps.
How to de-risk your investment decisions:
- For project developers: Compare potential locations using objective climate risk scores – locally and globally. This helps you avoid high-risk areas and build confidence with regulators, investors and partners.
- For investment managers: Use localised projections of event intensity – such as flood depths or wind speeds – to assess the potential impact of future extreme weather on planned locations. This supports sound capital allocation and helps ensure long-term operational efficiency.
- For planning teams: Integrate IPCC-compliant climate scenarios directly into your feasibility studies – including heat, drought, extreme precipitation or windstorms. This enables you to lay the foundations for more resilient and fundable project concepts.
3. Secure supplies – even in extreme weather conditions
Weather extremes linked to climate change are jeopardising the stability and availability of energy supplies: flooded substations, damaged power lines and heat-related peak loads are increasingly challenging grid operations. Power outages not only damage reputations – they also lead to substantial economic losses.
How to maintain supplies even in critical situations:
- For operations managers: Identify weather-critical weak points in your grid with site-specific risk evaluations and IPCC-based forecasting. Develop robust emergency and rerouting strategies tailored to each risk scenario.
- For grid planners: Integrate climate risk directly into load flow calculations and network expansion strategies. Location Risk Intelligence provides risk-adjusted location assessments to avoid bottlenecks and ensure stable supplies under extreme weather conditions.
- For security and crisis teams: Use scenario simulations to anticipate weather-related outages and optimise resilience strategies for the provision of materials, maintenance and crisis communication.
4. Meet ESG and regulatory requirements in an efficient and audit-proof way
Regulatory reporting on physical climate risks is growing rapidly. Whether it’s the CSRD, the EU Taxonomy, TCFD or ISSB – energy companies have to disclose their exposures, justify investments and provide transparent risk assessments. In spite of this, many utilities struggle with data availability, verifiability and reporting structures.
How to gain regulatory confidence – while saving time and resources:
- For ESG officers: Generate complete, audit-ready climate risk reports with just a few clicks – including all the relevant parameters for the CSRD, TCFD, ISSB and the EU Taxonomy. The solution delivers validated data and automatically formatted reports.
- For reporting teams: Export all required metrics in standardised formats (PDF, CSV, Excel). This allows seamless integration of climate risk data into existing ESG processes.
- For compliance and finance managers: Use standardised risk and loss metrics to meet regulatory requirements and provide transparent communication with investors, auditors and supervisory bodies.
5. Minimise weather-related losses – across your entire value chain
From power generation to grid infrastructure and storage: extreme weather directly affects operational performance. Heat reduces efficiency, heavy rainfall disrupts maintenance, storms break supply chains – with measurable effects on productivity and profitability.
How to systematically reduce climate-related operational losses:
- For operations managers: Identify critical weaknesses in your infrastructure using location-specific risk scores – and plan preventative measures accordingly.
- For asset managers: Monitor your assets with climate-adjusted KPIs and compare risk levels across different locations – to better prioritise maintenance and protective measures.
- For strategic teams: Simulate potential operational disruptions under various climate scenarios – and integrate those insights into your business continuity and investment planning.
Your benefits with Location Risk Intelligence
Identify vulnerabilities in grids and assets early
Whether it’s a substation, wind farm or battery storage facility – the solution shows you exactly where your infrastructure is at risk from extreme weather and where action is needed.
Make informed decisions based on scientifically validated data
Location Risk Intelligence builds on more than 140 years of expertise in analysing natural hazards and climate risks. It provides a solid foundation for strategic and operational decisions.
Invest with confidence – balancing risk and resilience
Simulate climate impacts through to the year 2100 and develop investment strategies based on projected hazard intensity – such as peak wind speeds or flood levels.
Meet ESG and reporting requirements reliably and efficiently
Generate regulatory-compliant climate risk reports for the CSRD, TCFD, ISSB & more – at the push of a button and based on validated data.
Ensure operational continuity – even in extreme weather
Incorporate climate risk analyses into your daily operations to prevent weather-related disruptions and maintain supplies – while implementing suitable prevention strategies.
Build trust through transparency
Communicate your climate strategy based on verifiable data – to investors, partners, regulatory authorities and the public.
Gain a genuine competitive edge in the highly contested energy sector. Talk to our experts today.
The strength of Munich Re’s solution for locational intelligence was a key reason for its top 3 placing in our inaugural ClimateRisk50 ranking. Also important was its ability to provide applications and solutions to suit a variety of industry sectors, including insurance, banking, real estate and manufacturing.

How Location Risk Intelligence and its editions support your daily operations in the energy sector
This modular SaaS solution supports you through its various editions in integrating climate-related impacts into your strategic, operational and regulatory decisions. Whether you're involved in power generation, grid infrastructure, storage solutions or asset planning – you'll receive precise analyses, future scenarios and reporting tools to help you assess and manage the effects of natural hazards and climate change.
By entering individual locations or uploading entire asset portfolios into Location Risk Intelligence, you can analyse, compare and document climate and natural hazard risks through meaningful reports. This enables you to identify both current and future risks – along with their financial implications – as a sound basis for resilience strategies, investments and regulatory compliance.
Climate Change Edition
This edition helps grid operators, planners and decision-makers not only to understand the current physical exposure of their infrastructure or organisation, but also to assess and analyse climate-related physical risks under multiple future scenarios up to the year 2100.
It covers both acute and chronic climate risks and provides 13 climate hazard scores. Unlike Natural Hazards Edition, the risk levels are not just calculated on the basis of past events – they also incorporate predicted changes in the intensity and frequency of future events under different climate scenarios.
Climate Financial Impact Edition
This edition is the ideal solution if you need to reliably quantify the financial impact of physical climate risks – helping you to identify potential losses and future investment needs at an early stage.
Based on one of the world's most comprehensive natural catastrophe databases and hazard modelling across various climate scenarios, this edition delivers detailed insights into physical exposure and the projected financial consequences of climate change – for any location, worldwide.
Reporting Edition
The Reporting Edition for physical climate risks is an out-of-the-box solution designed to help you to increase transparency and meet growing ESG reporting and audit requirements.
Create complete, regulatory-compliant reports in just a few clicks – ideal for organisations like yours needing to fulfil the CSRD, EU Taxonomy, TCFD or ISSB obligations.
Act now and protect your entire energy and utility infrastructure from climate risks
With Location Risk Intelligence by Munich Re, you can proactively prepare for emerging challenges, strengthen energy security and incorporate climate risks into your investment and operational decisions. And if you only need occasional risk assessments or reports, simply use the on-demand version.