Quantitative data for global asset manager and operator
With 61 assets across 13 countries covering 15 asset classes, we characterised risk profiles for each asset class, providing quantitative climate risk data to support Value at Risk, scoring, and ranking by peril.
Challenge
A global asset manager and operator had previously commissioned climate risk reports for a portfolio of assets from another international provider. However, the results delivered only provided risk profiles as red, amber or green without any quantitative climate modelling and analysis that could support further TCFD reporting on Value at Risk or scoring and ranking by peril. A more robust and thorough asset-specific climate risk reporting on its asset portfolio was required.
Insight
The client’s reporting requirements included quantitative reports with graphical and tabular data and Excel outputs with Value at Risk and Disruption to Service economic analysis. The analysis and reporting had to be auditable and defendable under review.
Working in partnership with the Singapore Office of Corporate Citizenship, we mapped and confirmed the portfolio of 61 assets across 13 countries, from data centres to shipyards, commercial centres to warehouses and golf resorts. We then characterised the assets by building type and construction, physical size, valuation, activity, and the number of occupants. The resulting data enabled us to develop 15 distinct report types to characterise the different risk profiles for each asset class. For example, the risks for data centres are markedly different on a peril-by-peril basis than for a shipyard, yet sea level rise and extreme still high-water levels may impact both assets
Solution
The resulting data fed the Value at Risk and Disruption to Service analysis. Our staff were available to provide direct, dedicated support to the client’s risk team, utilising the climate data. This included explaining the modelling and analysis process and methodologies. We also developed topic-specific materials in ‘plain English’ to interpret the risk analysis. This allowed the client to establish clear and robust information for its board and stakeholders, enabling them to build internal capacity in appreciating and understanding the frameworks and methodologies used in delivering climate risk and Value at Risk assessments of their assets. As a result, they can make more informed decisions on their investments and communicate findings more clearly.
Through ongoing engagement with the client, they continue to realise the value of our services. We have assessed more assets using our robust, defensible, and articulated data and documentation.
