Developing software to quantify Climate Change Risk

LBR helped produce a demonstration software application to show how climate change scenario data could be used to identify the natural capital dependencies faced by banks in their loan portfolios.


• Name: Jade-Eli Technologies
• Size: SME
• Location: Germany

Client need

Jade-Eli Technologies wanted support to produce a demonstration software application to identify the natural capital dependencies faced by banks. JET wanted this to show a range of environmental variables associated with climate change which could be accessed through APIs and configured to allow for risk quantification within a dedicated technological solution for computers and mobile phones.

The challenge

Setting out a detailed dependency pathway for the wine industry that linked drivers of change (in this case climate) to the relevant natural capital assets affected and their resulting impact on the finances of various businesses within the sector

Helping to review relevant climate data that would need to be accessed by the application.

The results

A research methodology for the design of dependency pathways based on the Banking framework for integrating natural capital risk into decision making for banks

Delivering a presentation of the research methodology as part of a breakfast event on ‘Natural Capital and Current Innovations’ at the JET quarterly breakfast at the Banking Club in Frankfurt.

What happened next

The approach was shared with a number of different clients to help demonstrate the use of scenario analysis for understanding climate change risk in a financial institution context. LBR is currently supporting a financial institution with the design of a risk based framework for evaluating climate risk.