What does a climate risk score actually mean?

If you've come across Telescope, you've probably seen a number next to a property address. A score between 0 and 10. Here's what it actually means.

But what does it actually mean? And what are you supposed to do with it?

This is a reasonable question — because climate risk scoring is new. There's no decades-old industry standard for it, no textbook definition most people learned in school. Unlike a credit score or an energy label, a climate risk score isn't something most professionals grew up working with. It's a new tool, for a new kind of problem.

Here's what you need to know.

The score in plain language

The Telescope risk score is a single number, from 0 to 10, that shows the financial risk tied to the natural hazards a property is exposed to. It combines the exposure level of each hazard with the historical insurance costs associated with it — so a high score doesn't just mean the area has climate hazards. It means those hazards have historically led to costly damage.

A score of 7, for example, indicates high risk of expensive damage. A score of 2 means the financial risk from climate hazards at that location is low.

There are three broad categories:

• 0–3.3: Low risk — Minimal exposure. Current risks are unlikely to cause significant financial or physical disruption.

• 3.4–6.6: Medium risk — Moderate exposure. One or more hazards are present that could affect long-term value or operational costs.

• 6.7–10: High risk — Significant exposure. The property is in an area affected by high-impact hazards with the potential for serious financial consequences.

These categories are designed to be intuitive. Low, medium, and high map to how most people already think about risk. The number gives you something concrete to reference, compare, and document.

What goes into the score?

The score is built from an analysis of the natural hazards that could affect a property — things like flooding, landslides, storm surge, coastal flooding, quick clay, and storm damage.

Not all hazards are treated equally. The score is weighted in two important ways.

Serious hazards count more. A "Very High" exposure to flooding carries significantly more weight than a "Low" exposure to storm damage. This reflects how climate damage actually works: one serious hazard can cause far more financial harm than several minor ones combined.

Weighting is grounded in real insurance costs. Each hazard is weighted against historical insurance claim data — meaning hazards that have historically caused the most damage carry more weight in the final score. The result is a number that reflects actual financial consequences, not just theoretical exposure. If an area has a long track record of expensive flood claims, that history is baked into the score.

There's also a "peak driver" mechanism: the single most impactful hazard at a given location is identified and given additional weight. This ensures that if a property has one dominant risk — say, a high landslide exposure — that risk remains the primary focus of the score, rather than being averaged away by a handful of smaller ones.

What the score is — and what it isn't

This is probably the most important thing to understand, especially if you're using the score in a client meeting, a credit memo, or an underwriting decision.

The score shows exposure, not prediction.

A high score means the property is located in an area that could be affected under extreme conditions. It does not mean that something will happen. It does not indicate an acute or imminent threat.

Think of it like a flood zone map. Being in a flood zone doesn't mean your property will flood next year. It means you are in an area where flooding is a relevant financial risk to factor into your decisions — and that the risk is higher than for properties outside the zone.

The same logic applies here. A score of 8.2 means: this property is significantly exposed to climate hazards that have historically caused costly damage. That exposure is real and financially relevant. But it is not a forecast.

The score reflects location, not the building itself.

The analysis is based on where the property sits — its geography, its proximity to hazard zones, its local climate conditions. It does not account for building-specific factors like the quality of drainage systems, flood barriers, or recent adaptation measures. Those factors matter, but they're a next step: what do you do about the exposure you've identified? That's exactly what Voyager's vulnerability and impact assessment is built for.

How to use it in practice

For a bank credit advisor, the score gives you something concrete to reference in a credit assessment. Instead of noting vaguely that "climate risk was considered," you can state the property's risk score, its category, and which hazard is driving it. That's a more defensible position — and one that regulators increasingly expect.

For an insurer, the score provides a consistent baseline across properties. It helps you identify concentration risk: are you writing too many policies on high-exposure assets in the same area?

For a real estate investor, it's a filter. High-scoring properties aren't automatically ruled out, but they warrant deeper scrutiny — and potentially a different pricing model.

In all three cases, the score is a starting point, not a conclusion. It tells you where the financial risk is concentrated. What you do with that information is the next question — and that's where the real work begins.

See how the Screening module puts this into practice →

Where the data comes from

The hazard analysis is built on publicly available data from Norwegian and European authorities, including NVE, DSB, Kartverket, MET Norway, and the Copernicus Climate Change Service. The methodology is aligned with the EU Taxonomy Regulation and the Do No Significant Harm (DNSH) requirements, which means it meets recognized standards for climate adaptation assessments.

This matters for documentation. When you reference a Telescope score in a credit memo or risk report, you're referencing analysis built on authoritative public data, following a transparent and reproducible methodology.

The bottom line

A climate risk score is a new kind of number — but it's not a complicated one. It shows the financial risk tied to the natural hazards a property is exposed to, weighted by the actual costs those hazards have historically caused. It's designed to be used by people who aren't climate scientists — and to give them something concrete, defensible, and actionable.

You don't need to be an expert to use it. You just need to understand what it's telling you — and now you do.

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