In recent years, investors who are truly committed to long-term stability are more likely to take climate resilience into account when choosing a place to live, relocate business and invest. In this context, Deep Knowledge Analytics in collaboration with Henley & Partners, the global leader in residence and citizenship by investment, conducted a study that assesses the relationship between countries' adaptability to climate change and investment or citizenship investment options that will help make a choice based on information about the best place to live, taking into account personal preferences such as real estate. investments, educational opportunities, retirement and much more.
The Global Climate Resilience study includes 180 countries, which were assessed in terms of their climate resilience to arrive at a Climate Resilience score of between 0 and 100.
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Countries scoring between 0 and 44.9 are classified as Lower Resilience.
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Countries scoring between 45.0 and 59.9 are classified as Medium Resilience.
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Countries scoring between 60.0 and 100.0 are classified as Higher Resilience.
Global Climate Resilience Index on the World Map
The Investment Migration Climate Resilience Index features the 15 countries hosting residence or citizenship by investment programs that are the most resilient to climate change, namely those that fall within the Medium Resilience and Higher Resilience bands, with Climate Resilience scores of 45.0 or higher.
To find additional relocation recommendations, taking into account climate risks, and to explore investment and citizenship program options for investments, read the article by Henley & Partners.
Investment Migration Climate Resilience Index
Only 7 out of 31 countries with investment programs are in a higher resilience band, having well balanced scores across all three sub parameters. Then, only 5 countries are located in the medium resilience band, having approximately the same readiness and vulnerability scores, but with much smaller economy size. Other 19 countries are in a lower resilience band with small economies, weak readiness to climate change.
From the percentage chart below, you can also see what fractions of each subparameter of the total score have. For countries with a lower resilience range, the vulnerability rate is the largest, while for higher resilience countries the share is well balanced.
Investment Migration Climate Resilience Index - Stacked Percentage Bar Chart
Conclusion
This collaboration between DKA and Henley & Partners showcases 180 countries of the world, and we specifically investigated 31 of those who has invesment migration program. We built our comparison on the ND-GAIN Notre Dame Adaptation Initiative, which measures a country's ability to adapt to the effects of climate change, and on an estimate of the size of the national economy in terms of GDP value and GDP per capita. The research confirms the hypothesis of association between a country's economic development and capacity to mitigate climate change challenge. Counties in lower resilience band are less vulnerable as well as being more ready to take on adaptation actions by leveraging public and private sector investments through government action, community awareness, and the ability to facilitate private sector responses. Moreover, their economy takes worthy part of the overall score, showing stable and diverse economy development. At the same time, medium resilient countries shows greater risks to climate disruptions and twice as less economy capacities. Countries in lower resilience band face the gravest risks and are ill-adapted to climate change, while their economy has a more fragile state as well.
About Us
Deep Knowledge Analytics is a DeepTech focused agency producing advanced analytics on DeepTech and frontier-technology industries using sophisticated multi-dimensional frameworks and algorithmic methods that combine hundreds of specially-designed and specifically-weighted metrics and parameters to deliver insightful market intelligence, pragmatic forecasting and tangible industry benchmarking.
It is an analytical subsidiary of Deep Knowledge Group, an international consortium of commercial and non-profit organizations focused on the synergetic convergence of DeepTech and Frontier Technologies (AI, Longevity, MedTech, FinTech, GovTech), applying progressive data-driven Invest-Tech solutions with a long-term strategic focus on AI in Healthcare, Longevity and Precision Health, and aiming to achieve positive impact through the support of progressive technologies for the benefit of humanity via scientific research, investment, entrepreneurship, analytics and philanthropy.
Henley & Partners is the global leader in residence and citizenship by investment. Each year, hundreds of wealthy individuals and their advisors rely on our expertise and experience in this area. Our highly qualified professionals work together as one team in over 35 offices worldwide.
The concept of residence and citizenship planning was created by Henley & Partners in the 1990s. As globalization has expanded, residence and citizenship have become topics of significant interest among the increasing number of internationally mobile entrepreneurs and investors whom we proudly serve every day.
Trusted by governments, the firm also runs a leading government advisory practice that has raised more than USD 10 billion in foreign direct investment. We have been involved in strategic consulting and the design, set-up, and operation of the world’s most successful residence and citizenship programs.
Methodology
The study aimed to provide an overview of the climate resilience of the 180 countries for which complete data was available from the perspective of global investors by taking into account each country’s wealth in addition to its vulnerability to the impact of climate change and its readiness to adapt thereto.
The framework comprises parameters pertinent to high- and ultra-high-net-worth investors who are considering investment migration programs in countries that are more resilient to climate change to mitigate their personal climate risk.
A country’s Climate Resilience score consists of three parameters:
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Readiness score - one of two dimensions of the University of Notre Dame’s Notre Dame Global Adaptation Initiative ND-GAIN Index, which evaluates a country’s preparedness to make effective use of investments for adaptation actions by having a safe and efficient business environment
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Vulnerability score - one of two dimensions of the University of Notre Dame’s Notre Dame Global Adaptation Initiative ND-GAIN Index, which represents the predisposition of human society to the negative impact of climate hazards
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GDP score - the average of a country’s normalized GDP and GDP per capita scores. In order to minimize the impact of extreme outliers, before normalization, observations were winsorized with 0.95 and 0.05 percentiles. The latest data (namely, 2020 data) is used, with the exception of four countries, where pre-2020 data was used owing to the lack of more recent data: Eritrea (2011), Syrian Arab Republic (2019), Turkmenistan (2019), and Venezuela (2014).
Each parameter consists of a matrix of between one and two sub-parameters (numeric values or the score in nature) that relate to the specific topic, analytical focus, and end-point of their parent parameter. Sub-parameters are numeric values or scores that are constructed based on quantitative or qualitative data from a range of reputable, publicly available sources. 180 countries in total are included as countries with missing values for one or more scores were excluded.
After the data was gathered, Climate Resilience scores were calculated for 180 countries based on the formula:
Total Climate Resilience Score = (Readiness + (100 - Vulnerability) + GDP) / 3
As mentioned above, the range was divided into three bands based on the Climate Resilience score:
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0-44.9 = Lower Resilience (142 countries globally)
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45.0-59.9 = Medium Resilience (23 countries globally, including 8 investment migration countries)
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60.0-100.0 = Higher Resilience (only 15 countries globally, including 7 investment migration countries)
Among the sources Deep Knowledge Analytics consulted are Notre Dame Global Adaptation Initiative’s ND-GAIN Country Index, and The World Bank Group’s GDP (current US$) and GDP per capita (current US$) data.
All the data available in the Investment Migration Climate Resilience Index is licensed by our licensor, Deep Knowledge Analytics Limited. Henley & Partners Group Holdings Ltd is not responsible for its correctness. The data posted in the Investment Migration Climate Resilience Index is freely accessible for private non-commercial use only.
Disclaimer
All data are used in the represented materials on a lawful basis to carry out a computational analysis for a non-commercial research according to the article 29A of the Copyright, Designs and Patents Act 1988 with amendments.
