Overview
Integrating ESG & Climate in Risk Management
In today’s rapidly evolving landscape, environmental, social, and governance (ESG) concerns have become a driving force behind decision-making frameworks. However, accurately modeling and incorporating ESG risks into financial institutions’ processes can be a daunting task. At Evalueserve, we specialize in overcoming these challenges, offering cutting-edge solutions to help banks, asset managers, and financial services firms harness the power of ESG modeling.
Our ESG solutions are proven to help clients rigorously develop and validate several models efficiently and in a time-based manner. As the importance of ESG data integration continues to grow, our solution provides comprehensive support for ESG risk modeling. From our experience with working on ESG and Climate risk models such as transition risk and physical risk scenario models, and ESG scorecard models we have developed an expertise in ESG and Climate risk modelling. Our goal is to equip financial institutions with the tools they need to understand and navigate the complexities of ESG risks and comply with ever-changing regulations.
Our Capabilties
Support Across the Model Lifecycle
Evalueserve provides comprehensive support throughout the entire model risk management (MRM) lifecycle, encompassing model development, validation, ongoing monitoring, and thorough documentation. Experience an expedited MRM performance with process automation driven by technology.
ESG Scorecard Model
Develop and monitor ESG scorecard model applicable to Corporates, Municipal Bonds, and Sovereigns. Evaluate the influence of distinct Environmental (E), Social (S), and Governance (G) risk factors and categories on the ESG risk rating and continuously monitor the portfolio's performance to gauge its ESG-related outcomes.
Physical Risk
Create physical climate risk models, conduct scenario analysis, and perform stress testing that encompasses acute and chronic risk factors. Evaluate how climate change impacts the portfolio in terms of physical risks.
Transition Risk
Develop transition climate risk models, conduct scenario analysis, and perform stress testing to evaluate the effects of transitioning to clean and green energy. Assess how this transition impacts various risk factors, including market, credit, and counterparty credit risk.
Reference Case
ESG Scoring for Municipal Bonds
The Portfolio Managers responsible for managing municipal portfolios within an asset management company needed ESG leadership data on municipal bond issuers. This was crucial to align their selection approach with their investment strategies, enabling them to identify ESG-related risks and opportunities. This data also accounted for potential reputational risks or credit rating changes linked to ESG concerns.
Evalueserve's solution ensured the effectiveness and reliability of the model, giving the portfolio managers confidence in their decisions.
Related Resources
Optimize your outcomes.
Natural Resources Portfolio Allocation
Discover how Evalueserve helped an asset management firm optimize portfolio allocations using Modern Portfolio Theory, ensuring accuracy and resilience in ESG-focused investments.
Forecasting Scenarios of Greenhouse Gas Emissions of Real Estate Portfolios with a Transition Risk Model
Discover how Evalueserve’s comprehensive validation of an asset management firm’s carbon emissions model ensures accuracy and compliance, supporting sustainable investment strategies.
Fortifying ESG Fund Composition through Rigorous Assessment of Corporates’ ESG Leadership
Discover how a leading asset manager enhanced their ESG funds through a validated in-house rating model, enabling informed investment decisions and strategic alignment.
Managing Long-Term Physical Risk of Climate Threats to Real Estate Investments
Learn how Evalueserve’s thorough validation of a climate risk model empowers asset managers to make informed decisions, enhance financial performance, and meet ESG goals.
Related Products
AI-optimized products that scale.
We offer a distinct suite of products with careful attention to client-specific agility and seamless integration into existing platforms.
Spreadsmart
Automate financial data extraction for valuation. Compatible with various file types. Improve accuracy and increase the speed of financial spreading by 70%.
Insightsfirst
An AI enabled platform helping banks to identify market opportunities and early warning signals through differentiated competitive and market insights curated to specific needs of Corporate and Commercial Banks.
Researchstream
Streamline research requests and improve knowledge management with Researchstream, a modern workflow platform that’s highly configurable and built for corporate and commercial banks.
