Climate Risk

Climate change presents both risks and opportunities - ON helps you with both

Building confidence in an uncertain world

 

Extreme weather events have significant impacts on communities and economies around the world, threatening the profitability and sustainability of even the most resilient businesses. Climate effects vary widely across different sectors, representing an existential threat to some and an opportunity for others. For the banks supporting these businesses, ON Climate enables you to navigate the many complex scenarios and risks extreme weather events present.

PI_Icons_Automated Risk & Monitoring teams Run climate-related scenarios, identify portfolio and climate impact metrics, and prepare for regulatory discussions. Decrease risk exposure and effects in sectors facing physical and transition risks.
PI_Icons_origination Origination teams Increase customer retention and wallet share by giving your front line the information they need to facilitate meaningful conversations with customers on climate risk.
PI_Icons_Climate_change ESG & Sustainability teams Report on Scope 1 and Scope 2 financed emissions quickly without costly and time-consuming data collection exercises.
 
THE ULTIMATE GUIDE

Commercial Lending & Climate Impact

Discover the challenges climate risk presents commercial banks and how to address this new era of risk assessment head-on, using data-driven insight to minimize risk and maximize opportunity.
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ON Climate Consortium

Learn more about the ON Climate Consortium, a group of innovative, climate-forward institutions driving commercial lending’s approach to climate risk and opportunity.

Executive Order on Climate-Related Financial Risk

"Banks with strong climate risk management systems and capabilities will not only bebetter prepared to withstand climate change events but will also have a better line of sight into the many business opportunities that will arise."
- Michael Hsu, Acting Comptroller of the Currency

Data is the driver

ON Climate provides lenders with the ability to assess climate transition risk on their loan book, with climate and credit risk teams getting access to immediate and actionable intelligence on their C&I portfolio down to the individual borrower level. Our solution enables banks to calculate financed emissions across their entire commercial loan book without wasting time collecting emission data from their customers.

Transition risks

Transition risks can arise from the process of adjustment towards a low-carbon economy. A range of factors influence this adjustment, including climate-related developments in policy and regulation, the emergence of disruptive technology or business models, shifting sentiment and societal preferences, or evolving evidence, frameworks, and legal interpretations. The ON Climate solution helps banks create effective climate impact transition strategies and incorporate climate risk measurement into your regular portfolio management and underwriting process.

Financed emissions

ON Climate enables banks to calculate emissions at the portfolio, sector, industry and borrower level, while adhering to PCAF score 3 and 4 reporting. Banks are also able to analyze and report on Scope 1 and Scope 2 financed emissions across six NGFS climate scenarios and five-time horizons for strategic planning while keeping the cost of reporting low. Use climate models aligned with recognized industry and accounting standards such as NGFS, and PCAF to avoid future risk and create effective climate impact transition strategies.

ON Climate Brochure

ON Climate provides you with insights on climate risk in your commercial portfolio that can inform your approach to every stage of the credit lifecycle.

Learn more

"Climate change risk will be a key focus area for regulators going forward, so banks need to be thinking about how they’ll address this - if they’re not already."

Bruce T. Richards
Former SVP at the Federal Reserve Bank of New York
TAKE THE NEXT STEP

Request a demo

Request a personalized demo to discover what ON Credit Intelligence can do for your bank.

What We’ll Cover:

  • What makes our technology different
  • How rapidly you’ll see results
  • Ease of installation and cost benefits
  • Current customers and outcomes