Scoping a framework for assessing climate risk for a UK Bank
Summary
Triodos Bank UK required technical support to identify options for scoping a framework for evaluating climate change risk to their loan portfolio.
How we helped
Little Blue Research completed a rapid risk assessment of the potential effect of climate change on Triodos Bank UK’s loan portfolio. Work included piloting approaches to identifying and valuing risk to help meet new requirements from the Prudential Regulation Authority (PRA) and identifying data gaps.
Client description
Triodos UK Bank
720,000+ customers
Case study details
Main service: Strategy & risk
Sector: Banking and finance
Assessment location: UK
Capital(s)
Challenges
• Prioritising areas for assessment by considering regional location and commercial asset types.
• Combining banking data with climate data and overcoming challenges associated with the use of different software tools and formats.
Outcomes
• Workshop setting out review results and suggested next steps for discussion with the bank’s risk and operations teams.
• Summary of outputs from review work and pilot assessment, identifying how Triodos Bank UK’s current data can be used, data gaps, and proposed actions and next steps.
"Little Blue Research worked collaboratively with us throughout this scoping work. They delivered insightful outputs and provided us with a series of tangible next steps to help us take forward our work on climate risk assessment. As a bank committed to tackling environmental challenges through our loan portfolio, this work is vitally important to us. It’s great to work with a research partner that truly values social and environmental impact."
Naomi Lea-Wilson, Business Banking Improvement and Development Manager, Triodos
Related case studies
Guide to assess natural capital risk in the banking sector
