Guide to assess natural capital risk in the banking sector
Summary
PwC approached Little Blue Research to support the development of the world's first step-by-step guide for financial institutions to conduct a rapid natural capital risk assessment for the Natural Capital Finance Alliance as part of the development of the Exploring Natural Capital Opportunities Risks and Exposure (ENCORE) model.
How we helped
Little Blue Research supported PwC with the development of materiality ratings for the ENCORE model and helped to pilot a finalised version of a banking risk framework with four banks.
Client description
Natural Capital Finance Alliance and PwC
Four pilot banks in three countries
Case study details
Main service: Strategy & risk
Sector: Banking and finance
Assessment location: Global
Capital(s)
Challenges
• Inputting into a global assessment of the materiality of natural capital dependencies for 169 sectors of the economy.
• Working with PwC to conduct four pilot studies with partnering financial institutions to measure the risk associated with different aspects of banking i.e. portfolio assessment, assessment of specific transactions, risk process evaluation, etc.
Outcomes
• Pilot risk assessments for four banks including: portfolio assessment, assessment of specific transactions and evaluation of current risk processes in relation to natural capital.
• Input into the ENCORE model by consolidating and checking descriptions of natural capital dependencies.
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