- The indices will facilitate the hedging of meteorological risk
- A family of 42 indices referenced to four meteorological variables: temperature, wind, sunshine, and precipitation, and measured by 300 weather stations across all of Spain
- According to several international studies, Spain ranks eighth in the world in terms of total economic sensitivity to the weather, with around 25-30% of production vulnerable to adverse climatic variations
BME is launching a new project, named BME Clima, in this way starting a new business line dealing with weather risk management that should allow a large number of companies and institutions in Spain to enhance their coverage of climate-derived risks and hedge possible economic losses.
Starting today, BME offers its customers information, data, and tools that will help them identify their weather-related risks following the launch of an innovative weather index platform, updated daily and referenced to some 300 meteorological stations distributed all over Spain.
The platform comprises 42 indices referenced to four meteorological variables: temperature, wind, sunshine and precipitation. The indices offer historical and current temperature data ranging from average temp, cumulative temperature, to critical days (hot days, cold days); wind data ranging from average speed, maximum speed, to critical days (windy days); sunshine data ranging from average and cumulative sunshine, to critical days (sunny days); or precipitation data dealing with rainfall, snow, hail, fog, storms, and many other phenomena.
BME has also developed a Tourism Index for Spain as a whole as well as for its main regions, comparing current and past meteorological conditions.
BME Clima also offers a consultancy service, providing customers with targeted information on the global weather risk market and the hedging solutions available.
Today there is a solid international weather risk management market helping numerous companies and institutions cover the possible economic losses derived from climatic variations, which can have a significant impact on certain economic sectors.
In Spain, where the weather has a heightened importance for many companies and sectors, the weather market is yet to develop properly, making BME Clima a truly pioneering initiative and placing BME as one of the very few international stock exchanges boasting a weather risk business line.
The relevance that this project can have for Spain´s economic activity are borne out by the fact that Spain holds eighth place in a global ranking of total economic sensitivity to the weather, with about 25-30% of production vulnerable to unfavorable climatic variations, especially the tourism, agriculture, construction, food, and textile sectors.
BME Clima´s services are available on its specific website www.bmeclima.es, offering a free access area and a restricted client area, with information about the services provided.