Portfolios at 46 European banks show that 15% are exposed to heightened climate-related risk at any given time. McKinsey estimates a severe flooding scenario could cause losses rivaling the peak of the 2008 financial crisis. And that’s just one risk.
As floods, fires, and extreme heat become more frequent, climate risk is no longer theoretical—it’s a present financial liability. External data allows banks, insurers, and asset managers to identify and quantify this risk with precision.
Why External Data Gives You the Edge
✅ Quantify financial risk from climate exposure across portfolios and properties
✅ Anticipate physical hazards like floods, wind, fire, and drought
✅ Prepare for evolving ESG and regulatory disclosure requirements
✅ Enhance long-term planning and resiliency with climate-informed models
✅ Build trust with stakeholders by proactively addressing climate risk
How It Works
🔹 Use Extreme Value Theory (EVT) to model probability and severity of rare climate events
🔹 Run General Circulation Models (GCMs) to forecast future climate impact under different emissions scenarios
🔹 Apply pluvial flood models to simulate risk from rainfall-based flooding
🔹 Downscale global models for local/regional asset-specific projections
🔹 Layer in geospatial, socioeconomic, and infrastructure data for a full risk profile
Together, these models help you turn future uncertainty into concrete, measurable insights—supporting better risk management, disclosures, and capital allocation.
Real-World Impact: A Bank Prepares for Climate Resilience
Fifth Third Bank partnered with First Street to assess climate risk across its mortgage portfolio. Armed with that data, they were able to:
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Reevaluate flood-related exposure in high-risk areas like North Carolina
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Satisfy SEC and shareholder requirements for risk disclosure
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Shape long-term business strategy based on quantified environmental risk
Future-Proof Your Strategy with Climate Risk Intelligence
Ignoring climate data is no longer an option—regulators, investors, and your balance sheet all demand action.
📩 Want to see how climate data can uncover hidden risks in your portfolio?
👉 Contact Blue Street Data to access models and insights that help you assess, plan, and act.
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