Data & Methodology
Built on structured data, not assumptions. NCED is underpinned by large-scale data engineering, entity resolution and analytical modelling designed for enterprise-scale climate and ESG analysis.
Methodology Overview
The NCED is an entity-level dataset designed to support climate, catastrophe and ESG risk analysis across large populations of businesses. It is not a generic rating system or a broad market benchmark.
Instead, the NCED focuses on linking real-world business identities to structured risk indicators - enabling users to understand exposure across portfolios, supply chains, customers and counterparties.
The methodology behind the NCED reflects several design principles: it is built for repeatability, transparency and scalability across Australian businesses.
Entity Resolution
The foundation of the NCED is entity resolution - the process of identifying and linking real-world businesses to their key attributes.
This involves matching business names, ABNs, trading addresses and other identifiers across multiple data sources. The goal is to create a unified view of each entity that can be consistently linked to risk indicators.
This step is critical because climate and ESG risk analysis depends on knowing what a business is, where it operates, and what sector it operates in. Without robust entity resolution, any downstream analysis risks being incomplete or inconsistent.
Key Data Elements
- Business identity
Entity names, ABNs, registration details
- Location context
Registered and trading addresses, geographic footprint
- Industry classification
ANZSIC codes and dynamic activity-based classification
- Corporate structure
Parent-subsidiary relationships where available
Hazards Covered
Physical Risk
Physical risk indicators in the NCED are derived from location-level hazard data. This includes exposure to flood, bushfire, cyclone, extreme heat and other climate-related perils.
The methodology links entity trading addresses to spatial hazard layers. This allows the NCED to provide indicators for how exposed a business may be to physical climate events based on where it operates.
Physical risk scoring considers hazard likelihood, severity and business exposure context. It is designed to support portfolio-level aggregation and comparative analysis.
Transition Risk
Transition risk refers to the economic, regulatory and market pressures that arise from the shift toward a lower-carbon economy. The NCED provides sector-level transition risk indicators based on industry classification and economic activity.
Transition risk scoring considers the sensitivity of different sectors to decarbonisation pathways, policy change, technology disruption and market demand shifts.
Transition Risk Factors
- Policy sensitivity: exposure to regulation, pricing mechanisms and emissions constraints
- Technology disruption: impact of renewable energy, EVs and energy efficiency
- Market shifts: demand changes due to consumer behaviour and investor expectations
- Stranded asset potential: risk of premature devaluation due to decarbonisation pathways
ESG Elements
- Estimated emissions context
- Emissions intensity indicators
- Sector-level sustainability signals
- ESG-related activity classifications
- Renewable and sustainability indicators where relevant
Note: ESG data coverage varies by sector and entity size. The NCED uses estimation and proxy methods where direct data is unavailable.
ESG and Emissions Context
The NCED incorporates ESG and emissions-related context where available. This includes estimated emissions indicators, sustainability signals and sector-level ESG classifications.
This component of the methodology supports Scope 3 analysis and helps organisations understand the broader ESG profile of their portfolios and supply chains.
Design Principles
All NCED outputs are designed to meet enterprise requirements for climate and ESG risk analysis.
Consistent
Standardised methodology across populations
Transparent
Clear documentation of data sources and methods
Repeatable
Same process, same results, every time
Auditable
Full traceability for governance requirements
Coverage and Scale
The NCED covers Australian businesses at scale. It is designed to support analysis across large portfolios, supply chains and customer populations.
Coverage includes entities across all major sectors and geographies. Data refresh cycles are designed to support regular reporting and ongoing portfolio monitoring.
The dataset is structured to integrate with existing enterprise data environments and supports both batch delivery and programmatic access.
Scale and Capability
Millions of entities
Australian business coverage
Location-linked
Address-level hazard data
Sector coverage
All major industries
Enterprise-ready
Governance and security
Governance & Quality
NCED is subject to rigorous governance processes to ensure data quality, consistency and reliability across all outputs.
- Regular data quality audits
- Documented methodology for all indicators
- Version control and change tracking
- Enterprise security and access controls
- Defined data stewardship and accountability
- Periodic methodology review and enhancement