Developing software to quantify climate change risk
Summary
Jade-Eli Technologies (JET) required support to produce a demonstration software application to identify natural capital dependencies faced by banks. JET wanted the application to show a range of environmental variables associated with climate change accessed through APIs and configured to allow for risk quantification.
How we helped
Little Blue Research supported JET by using climate change scenario data to identify natural capital dependencies faced by banks in their loan portfolios for an example industry sector.
Client description
Jade-Eli Technologies
SME
Case study details
Main service: Strategy & risk
Sector: Banking and finance
Assessment location: Global
Capital(s)
Challenges
• Setting out a detailed dependency pathway for the Italian wine industry linking drivers of change (climate) to relevant natural capital assets and resulting impact on the finances of businesses within the sector.
• Reviewing relevant climate data to be accessed by the application and working with software developers to define the demonstration application.
Outcomes
• Research methodology for the design of dependency pathways based on the Natural Capital Finance Alliance (NCFA) Banking framework for integrating natural capital risk into decision making for banks.
• Research methodology presentation at the JET quarterly breakfast at the Banking Club in Frankfurt.
Related case studies
Guide to assess natural capital risk in the banking sector
