Financial Services use cases

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

A large banking client sought inputs from XDI to run large-scale Monte Carlo simulations as part of a regulatory climate stress testing exercise. The solution was required across its global residential and commercial lending portfolios. The client also needed to respond to a deterministic scenario prescribed by the regulator.

A global asset manager needed to asses physical climate risks within its equity and debt portfolios to update the market under the TCFD reporting framework.

XDI worked with a global investment manager with Assets Under Management greater than one trillion US dollars to assess physical climate risks to its real assets portfolio.

A Domestic Systemically Important Bank (D-SIB) conducted analysis of its key lending portfolios for climate-related physical risk. XDI assisted with the analysis and presentation of information to both internal and external stakeholders.

Acting as an advisor to a large infrastructure transaction, XDI assessed the climate risk profile of a large wind farm. The project team used XDI’s analytics to understand potential climate-related risks to the turbines, the site, and surrounding critical infrastructure as part of its due diligence process. A key focus was operational continuity over the life of the asset.

A major Singapore-based bank with a large commercial lending portfolio in the ASEAN region required insights into climate risks in order to meet new regulatory requirements. The portfolio was subject to a range of climate-related hazards.

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.