How to reduce Risks of Climate Change as a Bank
Risk assessment and risk management for banking
The scope and technical sophistication of our Location Risk Intelligence Platform provides the most comprehensive risk management solution for analysing the financial impact of physical events resulting from natural disasters and climate change.
It allows you to forecast how a portfolio of assets may be financially impacted by climate change risks and natural hazards. What variety of risks it will be exposed to, together with the location and concentration of these risks, and how these risks may change over time under different CO2 emission scenarios.
Four main drivers to assess the financial impact of climate change risks:
Euro area banks must urgently step up efforts to measure and manage climate risk, closing the current data gaps and adopting good practices that are already present in the sector.
Webinar recording: How to bring physical climate risk into your loan origination process! In the webinar, our experts will highlight the importance of considering physical climate risks when making lending decisions.
How you benefit as a manager in the finance industry
Quantify your risk appetite better, because you can identify and visualise risk hotspots.
Build your TCFD report for physical climate change risks.
Evaluate the financial impact of the climate change risks of your infrastructure projects as part of the due-diligence process, enabling you to take informed decisions for debt or equity investments.
We are pleased to collaborate with Munich Re for climate-related physical risk assessments. Such exchange of knowledge and ideas between the banking and insurance sectors is a prime example of how industries can work together to combat climate change and financial risks arising from it.
Our Solution Offering at a Glance
- Covers a comprehensive set of 12 current and 7 future climate hazards for physical climate change risk identification that includes tropical cyclone, river flood, sea level rise, precipitation, drought, fire weather stress and heat stress
- Financial Impact Score included
- Future climate hazards are built on IPCC’s proposed RCP scenarios (2.6, 4.5 and 8.5)
- Time horizons - (current scenario, 2030, 2050, 2100 and further shorter ones planned)
- Scoring system is designed to generate scores as index (0-10) as well as a traffic light approach (low, medium, high etc.)
- Single location, portfolio and multiple portfolio analysis functionalities
- High resolution of up to 30m for individual risk types
- API and log-on versions available for different use cases
- The web version of the solution is built on GIS and is used for detail visualization purposes to assess climate and natural hazard risk