Why is environmental due diligence so important?

The increased frequency of severe weather events like flooding, droughts and storms have brought the impact of climate change much higher on the agenda of many financial organisations and lenders. Understanding the physical and financial ‘risks’ and their impact on society and the economy is essential.

As we have highlighted in recent weeks the Prudential Regulations Authority (PRA) has also raised the bar with regards to climate change, urging lenders to address this important issue by identifying the risks and minimising the impact on commercial property. 

Understanding both the short-term originating and climate-related long-term risk impacts of how soils, flood and environmental matters impact commercial property has never been more important. We must not get complacent about its threat. Valuers, underwriters and borrowers managing their assets need intelligent, helpful and consistent advice underpinned by true data at property-level granularity.

General data reporting can cause delay, inappropriate decision making and prevents good business being completed. At D-Risk we can help financial organisations meet these guidelines and support the commercial property loan origination process. Our Land Perils Assessment delivers a concise lending summary statement adapted to lenders own risk appetite.