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This methodology report from the Stockholm Environment Institute introduces the Transnational Climate Impacts (TCI) Index, a framework designed to quantify country-level exposure to climate impacts that occur in one location as a consequence of climate events elsewhere. The report details the selection of nine indicators across four risk pathways—biophysical, finance, people, and trade—plus a global context indicator, to identify how international interconnections and dependencies create climate-related risks for nations regardless of their internal vulnerability.

This methodology note describes the development of Indicator 8: Embedded water risk, a supplement to SEI Working Paper No. 2016-07. The indicator uses the IOTA (Input-Output Trade Analysis) model and WRI Aqueduct data to assess the relative water risk associated with the consumption of agricultural commodities embedded in international supply chains.