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06 August 2020 3 min read

FS firms with over $11 trillion of assets using the Baringa Climate Change Scenario Model

Financial Services firms globally with $11 trillion of assets are now using the Baringa Climate Change Scenario Model to measure the climate risk and temperature alignment of their loans, investments, insurance policies and other assets. This is safeguarding the planet, as well as the financial system, by reallocating capital across the global economy.

Having won the Energy Risk Climate Risk Innovation Award, our model is now recognised as a global leader - being used by banks, asset managers, wealth managers and insurers to meet the requirements of their regulators, shareholders, strategists, heads of sustainability, risk and finance officers.

Corporations across many sectors are now taking note of this, working with us to understand their own climate risk and temperature alignment metrics, and to understand where they sit amongst peers in their sector. This is critical to safeguard their future funding, insurance and investment. It is also critical to help them to plan, deliver, measure and report their decarbonisation and transition, as well as their climate risk.

Our model is unique in:

  • integrating physical risk, transition risk and temperature alignment
  • incorporating leading scenario expansion capability and sector transition models
  • providing global coverage of all key asset classes – including for example equities, bonds, loans, mortgages, asset and trade financing
  • and combining this with the ability for our clients to configure their own scenarios, to input their own house views on sectors, regions and individual companies and assets, and to have transparency of the calculations and outputs.

We would love to work with you to discuss how our model and our team of climate risk and energy transition experts can help your organisation use the measurement of climate risk and temperature alignment to support and drive transition, manage climate risk, and engage key stakeholders internally and externally.

Colin Preston, Baringa’s Financial Services Sector and Climate Change lead, says: “We are delighted that our model is being used and embedded within an increasing number of global firms. This includes the majority of the UK headquartered banks that are preparing for the Bank of England BES test in 2021. It is a genuine privilege to be able to help drive the reallocation of trillions of dollars of capital to accelerate the global drive to mitigate climate change and manage climate risk”.