Climate Risk Services provides products and services to help financial institutions and corporates accelerate the green transition by addressing real-world adaptation and implementation challenges.
Our offerings cover all aspects of embedding climate and nature-related risk management into organisations, from the science to the strategy and down to the execution.
Keep reading to get an introduction to our approach and methodology, analytics capabilities and expert advisory services.
Be part of the climate solution.
We have experience working with clients in the international financial sector, including emerging markets, as well as helping corporates in various sectors such as mining, agriculture, and food & beverages. Join our growing list of partners today!
Why focus on climate and nature-related risks?
Our theory of change is simple: organisations already speak the language of risk. Framing climate change as a business risk gives you a powerful lens to articulate your risk appetite informed by science and data. This allows you to integrate climate risks within your already established risk management processes.
Incorporating climate and nature-related risks into investment and insurance flows is not just good for the planet, it is where the smart money is going. Managing climate risks in finance systematically paves the path to the green transition.
What can my organisation do with the climate analytics platform?
Our goal with our analytics platform is to make climate data decision-useful and disclosure-useful. To those ends, we are optimising the platform with the following features.
Portfolio scans break down investment portfolios into geographies, with an estimation of sector-level exposure to each physical hazard type. This allows financial institutions to identify regions and sectors at risk and develop investment strategies to mitigate these risks. Transaction scans can calculate climate risk scores for singular loan/investment options, allowing financial institutions to incorporate climate-related due diligence in their operations.
For financial institutions, asset scans focus on counterparty-level exposure to physical hazards, with sectoral sensitivities informing the risk scores. This allows financial institutions to prepare for conversations with the relevant counterparties on their decarbonisation or adaptation plans. Asset scans for corporates on the other hand focus on site-level exposure to physical hazards, including nearby infrastructure and settlements. This allows corporates to identify adaptation, mitigation and resilience initiatives for disclosure and implementation.
What kinds of insights are possible with climate data?
Our climate data scientists utilise cutting-edge climate model data from leading providers like CMIP (IPCC) and IIASA to generate physical risk models. We add sector-level hazard sensitivity to create simple yet powerful visualisations of portfolio and asset risks.
Risks are visualised geographically and up to year 2100, presented in 4 time horizons – baseline (1981-2010), short term (2011-2040), medium term (2041-2070) and long term (2071-2100). Currently, our analytics covers ten hazard types, namely: coastal flooding, river flooding, wildfires, tropical cyclones, heat and cold waves, heat and cold stress, water stress, drought, erosion and crop yield variability.
With our climate analytics results, you gain deeper insight into your vulnerabilities and can take steps to build resilience.
What is the first step to get started with climate risk management? And then what?
We guide you through a series of questionnaires to diagnose your organization’s maturity in climate risk management. Results are presented in workshops with maturity scores, peer benchmarking, case studies and best practices.
We currently offer standardized questionnaires to assess TCFD compliance and adaptive capacity for financial institutions. We also provide support on technical topics such as carbon accounting, target setting and transition planning.
Portfolio & Asset Scan
How much risk is my organisation facing?
We conduct comprehensive portfolio scans to assess climate risks for financial institutions. This maps physical hazard exposure of your portfolio into sector-geography pairs. For corporates, we perform asset-level scans, including relevant infrastructure and nearby settlements. We can also provide sector-specific insights, such as crop yield variability for the agriculture sector.
Our analytics platform delivers outputs optimised for disclosure, planning and decision support within your organisation.
Scenarios & Strategy
How can my organisation best use scenario planning?
Understanding how climate change may impact business continuity is crucial for informed decision-making. But the green transition may come in many forms and with many uncertainties.
To address this, we facilitate a systematic approach to scenario generation. We start with reference scenarios from institutional providers – such as the IPCC, NGFS and IEA – since these provide a baseline for comparability. On top of these, we design organisation-specific narratives to trigger strategic conversations about the implications of transition pathways on core business drivers and the dynamics within your value chain. Scenarios are useful for stress-testing your organisational strengths, identifying potential vulnerabilities, and defining early warning indicators to be monitored.
We use scenarios to facilitate the development of holistic climate strategies in a series of open-ended workshops. A robust, resilient climate strategy mitigates known risks, leverages organisational capabilities and can be incorporated into the operational roadmap.
Trainings & Capacity Building
How can my organisation embed climate risk in practice?
CRS offers (bespoke) trainings to raise awareness and support implementation of climate and nature-related risks in practice. We cover a broad range of topics, and have delivered such trainings to organisations across multiple sectors. We also provide disclosure support in line with leading reporting frameworks, such as TCFD and PCAF.
We are able to assist you with a range of expert advisory services aimed at capacity building within your organisation: from process design based on best practices to cross-functional alignment for coherent risk management.