Integrate FRfCC into risk framework, structures, policies and processes
We help our client establish an understanding of the financial risks from climate change (FRfCC) and integrate them in the organization as a whole. We also work with our client to bring financial risk management into climate risk identification & quantification processes, determine a baseline for climate target setting and define key risk indicators and data inputs for remodelling exercise.
Support climate risk management with risk & portfolio modelling
We help identify, quantify risk & determine its impact by developing measurement tools and methodologies. We work with you to create tools to map investment portfolios against pre-agreed metrics & targets/thresholds. We develop frameworks / models for portfolio screening (positive & negative) and back-test models and methodologies for sustainable allocations. We conduct data availability, cleaning & analysis and define data inputs for modelling. We also provide support in assessing data solutions / vendors / suppliers.
Benchmark, validate and create climate scenarios
We will develop, build portfolio and risk specific scenarios and evaluate its resilience to a range of plausible future socioeconomic and climate scenarios and pathways. We help generate and perform specific scenarios on a business, market, or portfolio. We perform “reverse” scenario analysis to determine the most impactful future direction and evaluate the materiality for a business model.
Incorporate climate and environmental risks in to stress testing
We will enhance the existing risk modelling and stress testing capabilities to incorporate climate factors by identifying physical, transitional, liability, and broader ESG risks and by developing measurement tools and methodologies. We help stress portfolios for plausible, and relevant portfolio shocks and fat-tail climate risks.
Manage climate and environment risks with metrics & targets/thresholds
We assist financial institutions in developing tools to effectively report on the metrics, targets / thresholds related to the management of climate and environmental risks.