How did XDI help?
XDI conducted an analysis of each individual asset. The analysis incorporated outputs under a range of climate scenarios and accommodated a range of asset types using XDI’s library of archetypes.
XDI worked with the bank to solve a number of data quality and geocoding challenges, delivering 100% coverage of the nominated assets.
The bank was then able to use XDI’s web-based, self-service platform - the Climate Risk Hub. . The platform delivered results quickly in a data spreadsheet format (CSV) to allow portfolio risk teams to conduct further credit analysis, and in a PDF report with key findings ready for presentation to Boards and committees.
Metrics provided to the client included:
- Maximum-to-Date Value at Risk
- Technical Insurance Premium
- Climate Adjusted Value
- Productivity Loss
- Failure Probability
- Primary hazards driving risk
The Productivity Loss metric was used to calculate impairments to the income earning capacity of the asset, and Climate Adjusted Value was calculated to assess damage to collateral. Taken together, the outputs supported in-depth PD and LGD assessments.
The analysis allowed the bank to understand what hazards were most responsible for driving the risk profile to the asset and to form a view of credit risk at an asset level. The results could be extended as a basis for client engagement via customer relationship management teams to discuss climate resilience strategies for high risk properties.
Secure, assurable results
Delivered how you need it
By physical climate risk specialists
Asset management: Benchmark fixed income portfolios
Banking: Stress testing and scenario analysis
Asset management: Stewardship of equity and debt portfolios
Asset management: Climate resilience strategies for real asset portfolios
Banking: Reporting and disclosure
Asset finance: Due diligence
Commercial banking: Analyse your commercial property portfolio
Corporate Lending - Analyse your corporate lending portfolio
Retail banking - Analyse your residential mortgage portfolio
Our vision is not just to identify physical climate risks, but to mitigate them.
XDI can help you develop business plans for adaptation, helping you move from risk to resilience.
Talk to us today to find out more.