Shawbrook Bank accelerates focus on climate risk
Shawbrook Bank accelerates focus on climate risk with D-Risk and CLS Data
Summary
Specialist savings and lending bank, Shawbrook, has a working relationship with D-Risk and CLS Data to support the bank’s long-term strategy for integrating climate risk considerations into their lending and risk framework.
Requirements
Solution
Alongside our colleagues at CLS Data we are helping Shawbrook to deliver this with confidence against the PRA supervisory statement SS3/19 on ‘Enhancing banks and insurers’ approaches to managing the financial risks from climate change including physical and transition risks.
The combined expertise of the CLS Data and D-Risk teams will initially help Shawbrook to evaluate the threats of climate-related events on individual property-level exposures. The bank is using our innovative FloodBI™ product as part of the analysis of the future impact of flood risk on UK properties. FloodBI™ is a new product which is designed to evaluate the varying vulnerability of individual UK businesses to flooding and support the lenders approach to climate risk analysis in line with PRA regulations and counterparty engagement.
Result
Shawbrook’s actions are a significant step towards embedding climate risk into the bank’s risk management framework.
Hugh Fitzpatrick, Chief Risk Officer at Shawbrook, comments: “Data intelligence has a vital role to play in helping identify, manage, and mitigate the risks associated with climate change. This technology supports our strategy to evolve from understanding climate risk to actively supporting our customers in the transition to Net Zero as an integral part of the group’s purpose.”
