INDUSTRIES
Financial Services
A bank with a strong corporate lending portfolio had limited capacity to assess environmental and social risks, as regulation, including the Green Asset Ratio, raised expectations on sustainable finance readiness.
THE CHALLENGE
Legacy risk models, rising expectations
Credit models excluded climate considerations, ESG scoring was inconsistent, and green lending was minimal. The bank lacked forward-looking scenario analysis, climate risk quantification, and a sustainability management system, exposing it to reputational, compliance, and market risk.
Legacy risk models
Fragmented sustainability data
Limited green product range
No climate scenario capability
OUR APPROACH
How we structured the solution
01
ESG risk assessment framework
Environmental and social criteria integrated into credit evaluation, underwriting, and portfolio monitoring.
02
Climate scenarios and heatmaps
Transition and physical risk pathways with sector-based heatmaps to inform portfolio steering and capital allocation.
03
Green and sustainability-linked products
New loan offerings structured in line with ICMA and LMA principles.
04
Sustainability management system
Governance architecture, policies, accountability mechanisms, and internal reporting protocols.
THE OUTCOME
Sustainability embedded in the core risk framework, with a growing sustainable finance portfolio.
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