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15 Oktober 2020 7 min read

Standard Chartered selects Baringa’s Climate Change Scenario Model

Standard Chartered Bank chooses Baringa’s Climate Change Scenario Model to measure, manage and report climate-related transition risk and temperature alignment of its assets.

  • Baringa selected by Standard Chartered to implement Baringa’s Climate Change Scenario Model to strengthen the quantitative elements of the bank’s ongoing work on climate risk and climate alignment 

  • Baringa’s quantitative insights will inform the Bank’s climate risk management framework, contributing to its long-term capital allocation plans and business strategy  

  • Standard Chartered Bank to use Model to drive firm’s Bank of England BES reporting and TCFD reporting across a range of asset classes 

  • This assignment reinforces status of Baringa’s Climate Change Scenario Model – now used by global financial institutions with over $8 trillion of combined assets  

London, 15 October 2020 – Baringa has announced today that it has secured a major multi-year climate assignment with leading international banking group, Standard Chartered Bank. Standard Chartered Bank has chosen Baringa for the modelling of transition risk and temperature alignment arising from climate change. The assignment will see it integrate and use Baringa’s Climate Change Scenario Model across the bank so that it can measure, manage, and report climate risk and temperature alignment across its global portfolio of assets, and inform long term business strategy.  

Standard Chartered Bank plans to use Baringa’s solution as one of the key tools for the firm’s climate change reporting, including the Bank of England’s BES reporting as well as the bank’s TCFD reporting including temperature alignment metrics. 

The assignment with Standard Chartered underlines Baringa’s offering as the leading global model for data, insights, and scenario modelling in climate risk in the financial sector. The Model is now used by global financial institutions with over $8 trillion of combined assets.  

Mark Smith, Group Chief Risk Officer, Standard Chartered, said: “Granular assessments and credible metrics that we can use in our business management are two key areas of focus for Standard Chartered, as we develop our approach to climate risk. Through the climate change expertise and quantitative climate analytics Baringa brings, we will gain a greater understanding of the climate impact of our lending and the climate-related transition risks at the portfolio and individual counterparty level – enabling us to work with our clients to help them in their low-carbon transition.” 

Adityadeb Mukherjee, Standard Chartered’s Head of Climate Risk, said: “Baringa’s transparent approach and configurability of key parameters, broad sector and asset coverage, and ability to translate climate scenarios to mainstream financial metrics make it a powerful addition to our climate risk toolkit. The flexibility of Baringa’s approach makes for a smooth integration not only to our risk management frameworks, but also to frontline processes, enabling business and risk colleagues to work closer together.”  

Colin Preston, Baringa’s Financial Services Sector and Climate Change lead said: “Standard Chartered has already been taking great strides on climate change with its clients, and our Climate Change Scenario Model will take their commitment to the next level. Our Model is now widely used in the Financial Services industry, helping drive the reallocation of capital to organisations that will both accelerate the transition of the global economy towards Paris alignment, as well as reducing the climate risk within the global financial system.” 

Ilkka Ristimaki, Baringa, Partner, Financial Services and client lead with SCB stated: “Working with Standard Chartered and leveraging the global coverage of both our model and our team, we are excited to be increasing the level of engagement and impact we will have on climate risk and transition in particular across APAC, Africa, and Middle East.” 

For further information contact: 

Karin Duke-Roedler, Sr. Marketing Manager, Energy & Resources, Baringa Partners  
Tel: +44 7967 168 457 

Baringa Partners: 

Baringa Partners is an independent business and technology consultancy. We are working globally with governments, financial services clients, and the energy industry, as well as across other sectors, to accelerate decarbonisation, manage risks and adapt to climate change. We work with many of the largest banks, insurers, and investors globally, including advising on many of the largest renewable energy projects that are already generating sufficient power for over 200 million homes.      

Baringa launched in 2000 and now has over 700 members of staff and more than 70 partners across our five practice areas of Energy and Resources, Financial Services, Products and Services, and Government and Public Sector. These practices are supported by cross-sector teams focused on Customer and Digital; Finance, Risk and Compliance; People Excellence; Supply Chain and Procurement; Data, Analytics and AI; Intelligent Automation and Operations Excellence; and Technology Transformation. We operate globally and have offices in the UK, Germany, Australia, US, and the Middle East. 

Baringa Partners have been voted as the leading management consulting firm in the Financial Times' UK Leading Management Consultants 2020 in the categories Energy, Utilities & the Environment, and Oil & Gas. We have been in the Top 10 for the last 13 years in the small, medium, as well as large category in the UK Best Workplaces™ list by Great Place to Work®. We are a Top 50 for Women employer, and are recognised by Best Employers for Race.  

Baringa. Brighter Together. 

Baringa’s offering:  

Baringa’s Climate Change Scenario Model provides unrivalled depth and breadth of climate risk and temperature alignment data with integrated and modular transitional and physical risk on assets across the world. The zoomable data, sector-specific methodologies, coverage of companies, customisable scenario expansion and sector insights can inform the response of financial institutions and organisations to climate change.  

The data allows different scenarios to be modelled and provides analysis on 70 million physical assets in 4 million companies across regions, nations and at a global level across industry sectors. The Model leverages our partnership with XDI for physical risk analysis.  

Baringa is uniquely placed to support clients on climate strategy based on 20 years of experience advising governments, the energy industry, and financial services. The Model was awarded the global Energy Risk Climate Risk Innovation Award in 2020.