Emerging innovative climate risk assessment engine: The Cross Dependency Initiative (XDI)

Cross Dependency Initiative (XDI) analysis is newly developed by the Climate Risk Engines Research Team of Australia (“Climate Risk Engines”) which is endorsed by Climate Risk Pty Limited. XDI is developed through extensive commercial engagement with industry and government. From the outset, insights provided by the Climate Risk Engines have steered the research on climate resilience for a committed group of professionals. These professionals understand the need to discover appropriate technologies and computational processes to incorporate climate risk and resilience into decision making on over 16 million physical assets including water, power, communication, roads, rail and metro, residential housing, buildings and infrastructure networks.


The range of company intelligence products integrated into XDI provides institutional investors with high level insight into extreme weather, climate change and disaster risks to a single company or group of companies. The aggregated information gives investors and businesses an understanding of the physical climate risk profile in simple financial metrics. XDI links assets to existing critical infrastructure and identifies transferred risk. Concretely, the main components of the XDI climate risk assessment system can be described as follows:

  • The EasyXDI tool delivers asset level of physical risk analysis to accurately assess the cost of climate change impacts to an existing or planned asset;
  • The AdaptXDI tool extends the offering of EasyXDI for single asset analysis and adaptation. Within AdaptXDI, asset data is disaggregated into engineering and construction elements to understand which part of an asset may fail, when it may fail, and which hazard could cause failure. AdaptXDI allows businesses to customise asset features and test the effectiveness of resilience options such as building with different materials, raising floor levels in a flood zone, or increasing the design specifications in a wind zone or critical climate change impact area; and
  • The XDI Globe component allows businesses to review climate impact risks using a spatial interface, from a general area view down to an individual asset. This enables easy overview and quick highlighting of risk areas from individual hazards or all hazards.

In terms of climate and hazard data analysis, XDI dynamically downscales regional climate models (RCMs) from various projects across the world based on recent Global Climate Model (GCM) simulations on forest fires, riverine flooding (fluvial), overland flooding (pluvial), coastal inundation, heat extremes, subsidence (soil movement due to drought), extreme wind, freeze-thaw, lightning (under development) and landslip (under development). In addition to this, RCP 8.5 models with high resolution are integrated into XDI for asset stress testing under higher emissions and business-as-usual scenarios that are consistent with the current global emissions trajectory.

In summary, XDI creates a revolution in climate risk assessment and effectively secures confidential asset data within its supply chain. Furthermore, XDI identifies points of shared risk and critical dependency, allows businesses to discover how upstream risks are transferred to their assets, and develops climate resilience actions to cater for supply chain risks and critical dependencies.


This article is contributed by Ir Alex Gbaguidi with the coordination of the Environmental Division

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