Mount Street has a new climate-risk assessment tool to predict and mitigate against the upsurge in freak weather events - while helping cut risk for investors.
The bespoke system is designed to focus on individual buildings, sites or locations and will analyse the impact on them from factors such as rainfall, heat, water scarcity, wildfires and wind.
Analytics giants Jupiter Intelligence have helped create the model to gather metrics which will be used to flag-up climate-related risk changes over decade-long intervals.
Jim Gott, a senior director overseeing asset management and ESG at Mount Street, says it can be a game-changer for risk analysis in the debt market.
He added: “We are seeing greater volumes of assets in danger of becoming stranded due to climate-driven concerns, such as rising temperatures and natural disasters, including flooding, storms and drought.
“In recent months, this has even included property damage from wildfires, a phenomenon that many didn’t expect to see in the UK.
“So we created this bespoke tool with Jupiter in response to the growing threat of climate change.
"And also as a means of equipping our clients with the knowledge and analysis required to make informed investment decisions and protect their clients’ funds.”
The tool is intended to guide infrastructure improvements that can withstand the destructive forces of Mother Nature while simultaneously informing the best use of capital expenditures (CapEx) allocation.
It is already available to clients of Mount Street, a global third-party loan servicing and credit asset management firm.
The company’s CEO Paul Lloyd added: “We are committed to providing our clients with innovative solutions to enhance the full suite of services that we offer.
"We always focus on having a wider breadth of service and a deeper knowledge than others in our field.
“And we truly believe that assessing climate change is a fiduciary duty to our clients, their end investors, and ultimately our planet.”
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