Climate risk practice

Climate change has an impact on the way financial institutions do business and manage risks. We help our clients build an understanding of how climate change will affect their business model, the way they operate, measure and manage risks.

We help our clients develop sound risk management frameworks, anchored on robust data. Identifying risks and opportunities is an essential step towards developing a future-proof strategy. Understanding upcoming challenges posed by physical risks and the transition to a low-carbon economy on our clients’ businesses is what will help them build a new competitive advantage.

Climate change and associated regulation affects all lines of businesses. This is why we gather a multi-disciplinary practice, leveraging all of Reacfin’s expertise to tackle climate risk related challenges. Building on its risk management, quantitative finance and actuarial sciences experts, Reacfin provides the necessary resources and a broad range of competences to define and implement climate risk management strategies.

Competences

Reacfin helps financial institutions at every step of the climate risk journey.

Awareness sessions and training: helping your organisation upskill on climate risk matters.

Materiality assessment

Climate risk drivers mapping
Transmission channels identification: how climate divers translate into economic and financial impacts.
Mitigation measures: strategic actions to mitigate climate risks.
Development of materiality indicators

Scenario analysis

Development of top down or bottom-up climate scenario analysis tool (i.e. projection capabilities)
Development of scenario data.

Data management:

Data gap analysis, data sourcing strategy development and implementation (a.o. data modelling, geocoding).

Regulatory and reporting requirements

Identification of existing and coming regulatory (ECB, EIOPA) and reporting (CSRD, SFDR…) requirements for banks, insurance companies and other financial institutions.