Screen for assets most-at-risk

A global asset manager needed to asses physical climate risks within its fixed income portfolios as part of an internal risk assessment.

For many individuals, their homes are their single, most significant investment in their lives. Yet homeowners are often the last to know about their current or impending property’s risk to extreme weather events or what they can do to mitigate these risks. To address this challenge, XDI’s sister organisation, Climate Valuation, was created, providing home owners and home buyers with an immediate on the spot risk rating for individual properties and placing residential datasets in the public domain.

Unlike large banks, small lenders rarely have access to the detailed physical climate risk data they need to identify high risk properties in their portfolio. In the UK, XDI publicly released extreme weather and climate change physical risk statistics for 34 million commercial and residential addresses to ensure those most impacted could identify their risk.

A Global Systemically Important Bank (G-SIB) required analysis of over 4,000 loans to corporate counterparties, globally. The information was required to assess portfolio performance under NGFS scenarios in order to meet regulatory reporting requirements and set internal risk appetites.

A major mortgage lender wanted to assess its home loan portfolio for climate-related physical risk in order to understand its impact on serviceability, changes in collateral value and location of portfolio hotspots. It also wanted to use a physical climate risk analysis to set its risk appetite and inform adjustments to lending policies.