Daily forecast: Extreme weather and financial stability
The Climate Service embeds climate change into financial decisions
Pink thunderstorm

The past decade had the largest natural disaster impact footprint of any decade on record¹, and in 2019 alone the global economic losses from natural disasters exceeded USD 232 billion². These events not only cost money to recover from but also reduced market earnings.

In a recent S&P study³, CFOs and CEOs reported that 6% of annual earnings were affected by extreme weather and climate events. Businesses must factor climate change into their decision-making—but how do they go about doing that? Enter: The Climate Service.

The Climate Service, Inc. (TCS) (link resides outside of ibm.com) is on a mission to integrate climate data into financial decision-making. The TCS Climanomics platform helps organizations understand, quantify and mitigate their climate risks to build resiliency and reduce financial losses. With urgent and escalating demands from the marketplace, TCS chose to embark on an IBM Garage™ experience and adopt the IBM open-source cloud platform to fast-track the scaling of the Climanomics platform.

¹ Munich RE 2019 Natural disaster balance (link resides outside of ibm.com)
² Aon catastrophe report (link resides outside of ibm.com)
³ S&P Global Ratings study (link resides outside of ibm.com)

Empowered Decisions


The Climanomics platform empowers

Streamlined Workflows


The solution's hybrid architecture improves usability and streamlines workflows

When the world needs technology at scale, applied to a really hard problem, they call IBM. And that’s exactly what we did. James McMahon Chief Executive Officer The Climate Service, Inc.
Improving user experience

Through the IBM Garage, TCS gained access to the full breadth of IBM expertise and products, including IBM Garage Enterprise Design Thinking®IBM Cloud® and the Red Hat® OpenShift® container platform. Leveraging proven agile, user-focused practices, a dedicated end-to-end team of designers, developers and architects began by working with TCS to build a business opportunity statement to align on the key goals: improve overall user experience on the Climanomics platform, modernize existing architecture and data management, and ultimately enable continued revenue for TCS.

From there, teams met at the IBM Garage in London for a three-day design and architecture workshop to problem-solve in a collaborative environment with a mix of designers, architects and developers. The output was an agreed-upon, defined minimum viable product (MVP) for the re-architected platform, with the next eight weeks spent in user testing, development and modernization.

Startup speed, enterprise scale

Throughout the process, the IBM and TCS teams worked in close collaboration through daily standups, weekly retrospectives and iterations, and extreme and pair programming—both in person and virtually.

Following the IBM Garage Methodology, TCS moved from defining the business need, to building working and tested software, to scaling a solution to meet the escalating climate demand.

Gargantuan problem, gargantuan data

Climate risk analytics requires a vast amount of data—petabytes of data and thousands of equations—which necessitates an efficient cloud architecture to be able to manage and quickly access information. To scale its platform, TCS adopted the IBM open-source cloud platform, moving mission-critical workloads to hybrid architecture across IBM Cloud and Red Hat OpenShift. The result: improved usability for clients, more sophisticated integrations and streamlined workflows.

As climate change continues to produce escalating financial risks, the Climanomics platform empowers decision-makers to embed climate risk insights into decision-making. These insights maximize resilience and help investors, corporations and communities prepare for what lies ahead: the biggest challenge facing the world.

The Climate Service logo
About The Climate Service, Inc.

The Climate Service, Inc. (link resides outside of ibm.com) uses cutting-edge science and technology to help measure, monitor and manage the financial impacts of climate on its customers’ businesses and investments. Founded in 2017, The Climate Service is headquartered in Durham, North Carolina.

Next up:
Siemens Gamesa cuts time to market for wind power Read the case study How AI can help reduce landfill waste Read the case study

© Copyright IBM Corporation 2021. IBM Corporation, IBM Garage, New Orchard Road, Armonk, NY 10504

Produced in the United States of America, September 2021.

IBM, the IBM logo, ibm.com, Enterprise Design Thinking, IBM Cloud, and IBM Garage are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the web at www.ibm.com/legal/copytrade.

Red Hat® and OpenShift® are trademarks or registered trademarks of Red Hat, Inc. or its subsidiaries in the United States and other countries.

This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates.

The performance data and client examples cited are presented for illustrative purposes only. Actual performance results may vary depending on specific configurations and operating conditions. THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided.