Climate X

Is your bank running climate risk analyses, but you're still unable to use that data in real risk or lending decisions? 👉 A key barrier is model credibility. Climate models often lack the transparency, granularity, or governance required for model risk management or regulatory scrutiny. But this doesn't mean it's not possible. In our upcoming Risk.net webinar, you can hear directly from those who validate climate risk models, as well as risk and industry experts, how you can move from climate analysis to embedded decision-making. Register now to learn: • What risk teams mean by decision-grade climate risk data • Common methodology gaps highlighted by regulators and MRM teams • The hidden cost of fragmented climate risk vendors • Why regulatory expectations on climate data are rising globally The webinar is next Thursday 26th March at 2pm UK | 3pm CET | 10am ET. Sign up here: bit.ly/4rszdfC #webinar #climaterisk #finance #banking #esg

Climate risk is moving firmly into the core of corporate reporting in the UK. 🇬🇧 The government has now finalised its Sustainability Reporting Standards, setting the stage for broader adoption. For UK businesses, the message is clear: start preparing now. Here are five points worth paying attention to. 1️⃣ Global standards with a UK adjustment The new rules, UK SRS S1 and S2, follow the international ISSB framework. That signals alignment with global markets and investor expectations. The UK has also added a two year climate first transition period. This gives companies more time to focus on climate disclosures before expanding into wider sustainability reporting. 2️⃣ Scope 3 gets breathing room The ISSB framework allows one year of relief for Scope 3 emissions reporting. The UK version does not set a deadline yet. That gives companies more time to organise value chain data. It will not last forever. 3️⃣ Climate reporting now sits alongside financial reporting The UK has closed a gap in the international standard. Sustainability disclosures must be published at the same time as financial reports. Climate risk and financial risk are now treated as part of the same conversation. 4️⃣ Listed companies are next The standards are voluntary for now. The FCA has already outlined the path to mandatory reporting for listed firms. Expect a phased rollout, including transition periods for Scope 3 and wider sustainability disclosures, followed by a comply or explain model. 5️⃣ Transition plans are coming A separate consultation is running on mandatory Transition Plans aligned with the Paris Agreement. This shifts the focus from reporting the past to planning the future. Companies will need a clear strategy for how they reduce risk and move toward a low carbon economy. What does this mean for UK companies today? Start preparing early. Climate data, risk analysis, and credible disclosures will soon become part of standard corporate reporting. Firms that move first will be in a stronger position with regulators, lenders, and investors. Full article 👉 bit.ly/4bh77Oq Full guide 👉 bit.ly/47qMwFW #ClimateRisk #ClimateReporting #Finance #RealEstate #Infrastructure #UK

Climate shocks are starting to reshape the economics of commercial real estate. 🏘️ As insurers adjust to rising losses, developers and investors are looking at climate resilience in a different way. Not just as risk management, but as a driver of long term value. A recent article from Arkansas Business highlights three shifts already underway. 1️⃣ Insurance losses are changing development economics In 2023, Arkansas insurers recorded $2.56 billion in losses against $2.05 billion in premiums. That produced a 144% loss ratio, the second highest in the U.S. The impact is already visible in higher premiums for new developments. Deloitte expects U.S. commercial property insurance rates to rise from 7.9% to 10.2% by 2030. Climate risk is now part of project feasibility and financial planning. 2️⃣ Resilient design improves building performance The University of Arkansas at Little Rock’s Student Services Centre operates around 30% more efficiently than comparable buildings. The design combines high efficiency systems with daylight integration. Evidence on prevention spending also supports the case. A National Institute for Building Sciences report found that every dollar spent on prevention can save four dollars in recovery costs. 3️⃣ Resilience is becoming a market signal Investors, lenders, and tenants are paying closer attention to resilience features. Projects that include proptech, renewable energy, drought-resistant landscaping, and flood-aware design are increasingly preferred. In regions such as Northwest Arkansas, where drought, heat stress, and irregular rainfall are becoming more common, these measures are quickly becoming standard practice. Read the full article: bit.ly/4baWvjY Better climate data is helping developers make these decisions earlier in the design process. That means lower long term costs, stronger financing discussions, and assets that remain competitive as climate risk increases. 👉 Follow us for more on climate risk, resilience and their impact on real estate assets. #ClimateRisk #RealEstate #Insurance #ClimateResilience #ClimateAdaptation #US

🚨 Tomorrow: How Climate Risk Models Should Work 👉 We’re hosting a live webinar with Fathom focused on transparency, trust, and decision-ready insight in climate risk modelling. This session is led by climate scientists and moderated by Climate X CEO Lukky Ahmed. In 30 minutes, you'll learn: • How modelling approach affects financial outcomes • What transparency really means in practice • How flood risk modelling works as a real-world example If you rely on climate risk outputs in banking, asset management, or insurance, this discussion will give you a clearer framework for evaluating the models behind the numbers. Live Q&A included. There is still time to register and attend. If you cannot join live, register to receive the recording. Sign up here: bit.ly/4ajyA2A #ClimateRisk #RiskManagement #FinancialServices #ClimateModelling

Do you still rely on climate risk scores you can’t fully explain? Join our 30-minute, science-led webinar with climate scientists from Climate X and Fathom, moderated by our CEO Lukky Ahmed. We’ll unpack what financial-grade climate risk modelling should actually look like and why transparency matters more than headline precision. Ask your questions live. Register here: bit.ly/3OmbjED #ClimateRisk #RiskManagement #FinancialServices #ClimateModelling

This week our D&I Committee at Climate X hosted an internal panel to mark #InternationalWomensDay. The theme was Give & Gain: what we give at work shapes what we gain from it. Sponsorship, allyship, recognition and advocacy influence how careers progress and how teams work together. Over lunch we heard honest reflections from leaders working across climate risk and finance. Women working in banking, commercial leadership and risk modelling shared what helped them progress and where barriers still appear. Jyoti, our Model Risk Management Manager, guided the thoughtful discussion on careers, sponsorship and visibility in technical and financial roles. We had the pleasure of hearing from former colleagues and partners: Erica Sassu, who leads Climate Analytics and Stress Testing at Citi, shared perspectives from enterprise-wide scenario planning and regulatory stress testing. She spoke about the role sponsorship can play in technical careers, especially when visibility and advocacy open doors that talent alone often does not. Karena Vaughan, Chief Sales Officer at Fathom, reflected on more than two decades across climate risk science and commercial roles across global financial markets. Her perspective focused on commercial leadership, allyship and the everyday actions that shape strong teams. Sonia Caverzan, Client Partner at 4most, drew on her experience advising financial institutions on risk modelling and quantitative analytics. She spoke about confidence, recognition and the importance of backing people as they step into leadership roles. A big thank you to our speakers and to Jyoti for moderating such an open and thoughtful conversation. At Climate X, we left the room with new perspectives and a stronger sense of how we support each other’s progress. #IWD2026 #WomenInFinance #WomenInClimate

Not all climate risk conversations are led by the people building the models. This one is. 🎤 In our upcoming webinar, climate scientists from Climate X and Fathom explain how climate risk models are actually designed, validated, and translated into financial insight. You will hear directly from the technical experts responsible for building and testing these models, alongside Climate X CEO Lukky Ahmed, who brings a banking and risk background to the discussion. If you rely on climate risk outputs but do not have a scientific background, this session will give you a clearer framework for evaluating them. Learn: • What “financial-grade” climate risk modelling actually means • How transparency and validation are handled in practice • Why modelling choices materially affect credit, investment, and insurance decisions • How flood risk provides a real-world test case for modelling quality Join us for a practical, science-led discussion and ask your questions live. Register here: bit.ly/4twBokm #ClimateRisk #RiskManagement #FinancialServices #Banking #AssetManagement #ClimateModelling #SustainableFinance

A new BCG report sends a clear message to banks in emerging markets: climate risk can be a first-mover opportunity for those ready to act. Here are five insights financial leaders should not ignore: 1️⃣ Climate risk is rising faster than resilience Projected global GDP loss from climate risk has nearly tripled to 14.8% by 2050. Yet only 8% of banks in Asia and 13% in Africa have assessed their climate resilience. In low-income countries, non-performing loans rise sharply after disasters. The exposure is real and often under-measured. 2️⃣ The insurance buffer is shrinking In developed markets, insurance covers around half of physical climate losses. In emerging markets, coverage drops to as little as 0 to 10%. That leaves local banks directly exposed to client losses and declining collateral values. 3️⃣ Adaptation finance is still small but growing fast Adaptation and Resilience finance represents just 10% of total climate finance today. But it is expanding at 12% annually. Demand is accelerating across agriculture, water, and infrastructure. Clients need capital now, not in five years. 4️⃣ Concessional capital can de-risk the opportunity Nearly $30 billion has been committed to the Green Climate Fund since 2010, with 50% mandated for adaptation. Grants, guarantees, and blended structures are available to help banks scale A&R portfolios while managing downside risk. 5️⃣ A dual growth strategy makes commercial sense Banks can back high-growth innovators building resilience solutions. At the same time, they can support high-risk, climate-vulnerable clients with tailored financing. Done right, this protects portfolios and creates new revenue streams. Why does this matter? For banks, climate risk is a balance sheet issue. Ignoring it increases instability, while acting early builds competitive edge. The institutions that invest in the right risk assessment capabilities and embed adaptation finance into core lending will not just manage disruption, but rather grow through it. Read the full BCG report: on.bcg.com/4u7obi6 If you are exploring how to assess physical risk at asset level and structure ROI-positive resilience strategies, download our whitepaper on Adaptation Finance bit.ly/4bjsIXn Image from BCG Report. #ClimateRisk #Banking #ClimateResilience #AdaptationFinance #EmergingMarkets #SustainableFinance

When you present a climate risk score, be it for originations, risk assessment or compliance, the label of 'high risk' is not enough. You need a clear understanding of the methodology; explain how that was calculated to your risk committee, documentation and validation of the modelling behind it. We start to see climate risk models starting to influence lending decisions and investment strategies, yet often you don't get a full understanding of the modelling approach behind them. In financial services, a score is simply not enough. You should evaluate a climate risk model and provider on how transparent and decision-useful the model is, not on headlines. If you rely on climate risk outputs in banking, asset management, or insurance, join our webinar to learn a clear framework for evaluating the models behind the numbers. Register here: bit.ly/4azpT2X #ClimateRisk #RiskManagement #FinancialServices #ClimateModelling #Banking

Climate risk models are now shaping credit decisions, investment strategy, and regulatory outcomes. But here’s the question: how many institutions truly (truly!) understand the models behind the scores? Too often financial teams rely on outputs they cannot fully explain, validate, or defend in front of risk committees or regulators. In our upcoming 30-minute, science-led webinar, Climate X CEO Lukky Ahmed brings together Dr Natalie Lord, Principal Climate Scientist at Fathom and Dr James Brennan, Director of Science at Climate X for a moderated discussion that bridges climate science and financial decision-making. You will hear directly from the climate scientists who build and validate these models, alongside a CEO with a banking background who understands how they are used in practice. Learn: • What financial institutions should expect from climate risk models • What transparency and validation actually look like • Why modelling approach matters more than headline scores • How flood risk provides a real-world test of modelling quality Overall, climate risk models should be judged on transparency and decision usefulness, not on claims of precision. Join us live, ask your questions, and leave with a clearer framework for evaluating the models behind the numbers. Register here: bit.ly/3MF2AN8 #ClimateRisk #RiskManagement #FinancialServices #AssetManagement #Banking #ClimateModelling #SustainableFinance

Adaptation is no longer an abstract concept or future ambition. In 2026, it's becoming a practical lever for protecting asset values, preserving income, and sustaining performance as physical risks intensify and insurance capacity tightens. Asset managers who are serious about climate risk are not acting for optics. They are doing it because resilience directly affects cash flow, valuations, and long-term competitiveness. The focus is shifting from identifying exposure to understanding which assets will continue to perform, and where targeted adaptation protects value over time. This adaptation-led mindset is one of the defining themes explored in our 2026 Climate Risk Trends report. Explore the other ones here 👉 bit.ly/3YD1YKz #ClimateResilience #climatechange #climaterisk #finance #banking #sustainability #innovation #physicalrisk #climateadaptation

The climate risk conversation is maturing. For years, the focus has been on measuring exposure. In 2026, the emphasis is on outcomes: asset performance, operational continuity, and long-term value protection. This evolution is visible across banking, asset management, and real assets, and it is redefining what “good” climate risk management looks like. Our latest report outlines six trends that capture this transition from measurement to action. Grab it here, it's free 👉 bit.ly/4pKhNtL #ClimateResilience #climatechange #climaterisk #finance #banking #sustainability #innovation #physicalrisk #climateadaptation

Climate adaptation and resilience are quickly becoming core banking disciplines, not side projects. As physical climate risk pushes corporate RWAs higher, banks are facing a clear challenge: how to protect lending capacity and asset quality while continuing to grow. Treating adaptation as a compliance exercise is no longer enough. It needs to sit at the centre of credit, risk, and capital strategy. In this article, we walk through a practical, step-by-step approach to planning climate adaptation and resilience in banking. From using climate heatmaps to identify material exposures, to embedding adaptation planning frameworks into capital allocation and credit models, the piece shows how banks can move from fragmented analysis to decision-ready action. The article also highlights why cross-team collaboration matters. When risk, credit, and ESG teams work from the same climate intelligence, banks can price risk more accurately, prioritise high-return adaptation investments, and steer portfolios towards resilience-led growth. If you work in risk management, credit, ESG, or capital strategy, this article outlines how to turn climate adaptation from a blind spot into a structured advantage for both profitability and long-term stability. 👉 bit.ly/491inyq 📘 Planning for climate adaptation and resilience in banking 🎧 Prefer to listen? The episode is available in audio too. ----------------------------------------------- This article is part of a new series on Corporate Finance. Follow for more insights. #banking #finance #sustainability #innovation #ClimateResilience #climaterisk #sustainablefinance #greenwashing #climateriskdata #climateadaptation

PwC’s latest CEO survey highlights a growing disconnect between awareness and action on climate risk in Ireland. 🇮🇪 While 44% of Irish CEOs recognise climate change as a financial risk, only a small proportion are embedding those risks into everyday decision-making. As David McGee, Sustainability Leader at PwC Ireland, notes, the opportunity now lies in moving beyond risk management toward value creation. Key findings from the survey: 👉 Climate risk exposure is material 44% of Irish CEOs say their organisation faces at least moderate exposure to climate-related financial losses, yet these risks remain underrepresented in core decisions. 👉 Decision-making processes lag behind Only 21% integrate climate considerations into supply chain and sourcing decisions, and just 28% into product design and development. 👉 Capital allocation shows early progress A quarter of CEOs now factor climate risk into capital allocation decisions, including M&A, but this remains far from standard practice. 👉 Sustainability supports resilience and growth Embedding sustainability into decision-making is increasingly linked to competitive advantage and long-term resilience. 👉 Data enables value creation New sustainability reporting requirements create a clear opportunity to use climate data to inform strategy, investment, and growth. For business leaders, the message is clear. Climate risk needs to be embedded into strategic, financial, and operational decisions to protect value and unlock opportunity. If you want to explore how climate risk can be integrated into decision-making across portfolios and transactions, speak to our team: bit.ly/3O7Ozb9 Read the full PwC CEO Survey: pwc.to/3NNFtQL #ClimateRisk #ValueCreation #PrivateEquity #ClimateResilience #ROI #ClimateAdaptation #Ireland #Europe

For real assets, climate risk is no longer theoretical. Rising losses, insurance constraints, and operational disruption are forcing asset owners to rethink how value is protected over the long term. In response, adaptation is increasingly being treated as a commercial decision, not just a resilience measure. This is particularly visible in the property sector as risk and return become more closely linked to physical resilience. If this affects you, read our 2026 Climate Risk Trends report. It explores how this shift is playing out. You can read it here: bit.ly/49V672G #ClimateResilience #climatechange #climaterisk #banking #finance #sustainability #innovation #physicalrisk #climateadaptation

Climate adaptation and resilience are no longer future considerations for banks. They are core financial decisions. Physical climate risk is already reshaping credit risk, capital allocation, and portfolio performance. Yet the cost of inaction continues to far outweigh the cost of investment. The gap between exposure and preparedness is where both risk and opportunity now sit. In this article, we explore why climate adaptation and resilience have become foundational to modern banking strategy. From integrating climate intelligence into credit scoring and loan pricing, to identifying high-yield adaptation lending opportunities, the piece shows how banks are moving beyond compliance and turning climate risk into a strategic advantage. The article looks at how climate-adjusted credit models are already helping banks reduce losses, free up capital, and access new segments of resilient growth. It also breaks down where adaptation finance is delivering measurable returns and how lenders can operationalise A&R across portfolios, not just policies. If you work in credit, risk, sustainable finance, or capital strategy, this article outlines why adaptation is no longer optional and how leading banks are building resilient balance sheets in a changing climate. 👉 bit.ly/3YXNS6o 📘 Climate Adaptation and Resilience in Banking: the foundations 🎧 Prefer to listen? The episode is available in audio too. ------------------------------------------- This article is part of a new series on Corporate Finance. Follow for more insights. #banking #finance #sustainability #innovation #ClimateResilience #climaterisk #sustainablefinance #greenwashing #climateriskdata #climateadaptation

Climate change is becoming a material risk to UK property values. Flooding, subsidence, and heat stress are already affecting asset usability, insurability, and marketability across the built environment. As highlighted by Jacqui Bourke and Eoghan Quinn at TLT LLP, property owners can no longer afford to treat climate risk as a future concern. Three things property owners should be paying attention to: # 1. Climate risk can strand assets Environmental exposure and regulatory pressure are already eroding value. Around 50% of commercial real estate assets in London are now valued below their original purchase price. # 2. Inaction carries real financial cost Unaddressed climate risk can affect insurance terms, liquidity, and access to finance. Energy-efficient buildings are already commanding a £5,000 to £9,000 premium over inefficient assets. # 3. Early action protects value Climate risk assessments, EPC compliance, and green lease clauses are practical steps that can help safeguard asset performance and long-term resilience. At Climate X, we go beyond risk identification. We help property owners and investors translate climate risk into clear decisions that protect value and support resilience. If you need help, get in touch at bit.ly/4t7oDwA Read the full article: bit.ly/3ZzRkod #ClimateRisk #RealEstate #AssetManagement #ClimateResilience #AssetStranding #UKProperty #ClimateAdaptation

In corporate lending, structure matters as much as price. Choosing the right loan type is not a tactical detail. It is a strategic decision that shapes portfolio performance, risk concentration, and long-term profitability. When loan structure, borrower risk, and growth objectives are misaligned, even strong credits can become fragile. In this article, we unpack the Loan Fit playbook and why disciplined loan selection is becoming a critical advantage for corporate lenders. From understanding how different loan types behave under stress, to aligning facilities with borrower growth goals, the piece shows how better structure leads to stronger outcomes for both lenders and clients. The article also explores how risk-based segmentation and modern lending tools are helping banks move faster without weakening governance. By tailoring approvals and controls to true risk profiles, lenders can shorten credit cycles, improve productivity, and build higher-quality portfolios that scale. If you work in corporate lending, credit, or portfolio strategy, this is a practical framework for improving performance through smarter structure, clearer risk alignment, and modernised operations. 👉 bit.ly/494ho0u 📘 The Loan Fit Playbook: structure, risk, and performance in corporate lending 🎧 Prefer to listen? The episode is available in audio too. ----------------------------------------------- This article is part of a new series on Corporate Finance. Follow for more insights. #banking #finance #sustainability #innovation #ClimateResilience #climaterisk #sustainablefinance #greenwashing #climateriskdata #climateadaptation

A key question is emerging across financial services: which assets remain resilient as climate risk conditions change, and which struggle to perform? Answering this requires moving beyond broad exposure metrics toward asset-level insight that supports real prioritisation. The six trends in our 2026 Climate Risk Trends report reflect this shift from awareness to informed action across the industry. If you want to know more about where the industry is heading, read the report now 👉 bit.ly/4aaxg0A #ClimateResilience #climatechange #climaterisk #banking #finance #sustainability #innovation #physicalrisk #sustainablefinance #greenwashing #climateriskdata #climateadaptation

Partnerships only matter if they solve real problems. Climate resilience is no longer theoretical, it’s affecting communities now and raising the stakes for investors tomorrow. That’s why we’re excited to share that Climate X and Scaler are strengthening our partnership through 2026 to help commercial real estate teams tackle sustainability and climate resilience together. Real estate investors are juggling climate risk, regulation, and decarbonisation targets at the same time. This collaboration brings sustainability performance and physical climate risk into the same conversation, so decisions are grounded in both data and practicality. We started working together because our clients asked for it. They needed tools that didn’t live in silos, and a clearer path from insight to action. Read the full announcement here: bit.ly/3M3KbJO #CommercialRealEstate #Sustainability #ClimateResilience #ClimateRisk #PropTech #Partnership