- In-depth analysis of climate-related risk by sector and geography at a client level
- Assess risks without the need for client-provided information, using XDI’s proprietary databases
- Test counterparty risk ratings under different climate scenarios
- Deep dive on high risk clients for further engagement on climate resilience
How did XDI help?
Using proprietary and third party databases, XDI was able to identify owned, operated and leased assets for each company in the client’s portfolio.
The use of databases avoided the need to approach each customer individually, reducing implementation time and pressure on frontline teams.
Having established the asset profiles of each counterparty, XDI performed risk analysis under a range of climate change scenarios. The client was able to identify hotspots of climate risk and areas of the portfolio where further analysis would be needed.
Metrics provided to the client included:
- Maximum-to-Date Value at Risk
- Technical Insurance Premium
- Productivity Loss
- Failure Probability
- Primary hazards driving risk
- Sectoral and geographic breakdown
Outputs from the analysis were used in different ways. Firstly to understand overall performance of the corporate lending portfolio under different climate scenarios; and secondly to conduct sensitivity analysis on credit risk ratings using metrics such as Productivity Loss.
XDI’s independent analysis of corporate loan portfolios allowed the bank to enhance its climate strategy with its institutional banking clients. By identifying higher risk counterparties, it was able to explore climate resilience strategies in future client engagements, alongside existing net-zero plans.
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.