Risk Integration
For institutions, the integration of carbon risk has until now been restricted by a lack of robust emissions data in the market, leading to uncertainty in transactions and potential oversight of risk/opportunities.RepuTex’s extensive emissions databases now provide institutions with the data to optimise decision making rules and processes, accounting for new carbon considerations through a range of outputs.
Credit Risk
• Understand the implications of different carbon scenarios
• Identify a comprehensive dashboard of carbon indicators
• Quantify sector and asset impacts/liabilities
• Identify priority sectors and establish industry benchmarks
• Set concentration limits, risk grading and detection systems
• Stress testing
• Develop business rules for treatment of different risks within the designed framework
Investment model & portfolio integration
• Understand the implications of different carbon scenarios
• Identify a comprehensive dashboard of carbon indicators
• Quantify sector and asset impacts/liabilities
• Quantify exposure and risk management, e.g. abatement capacity, price inelasticity, increased costs, reduced demand and product substitution
• Identify priority sectors and establish industry benchmarks
• Set diversification, allocation levels, benchmarks
• Alternative risk transfer mechanisms
• Portfolio optimisation
