Asset finance: Due diligence
Acting as an advisor to a large infrastructure transaction, XDI assessed the climate risk profile of a large wind farm. The project team used XDI’s analytics to understand potential climate-related risks to the turbines, the site, and surrounding critical infrastructure as part of its due diligence process. A key focus was operational continuity over the life of the asset.
- In-depth analysis of climate-related risk for large-scale infrastructure
- Assess on-site and surrounding risks using XDI’s unique mesh analysis
- Explore adaptation options to inform capex and resilience strategies
How did XDI help?
XDI carried out point based analysis of the entire site and each individual turbine. In addition, XDI used a mesh-based approach to identify dependencies on surrounding power infrastructure and transport networks.
Separately, each turbine was assessed using an appropriate archetype from XDI’s library, identifying several turbines where the risk of heat-related failure was a potential risk under extreme climate conditions. The ability to explore solutions via XDI’s Adapt module assisted the team in exploring the cost-benefit of different asset resilience strategies.
XDI’s interactive risk visualisation tool, XDI Globe, was used by the project team bank to help the borrower and stakeholders visualise identified risks.
Results
- Overall low to moderate risk across asset portfolio
- Failure due to exceedance of heat and wildfire thresholds is more probable than physical damage risks, rendering the assets unable to operate as designed for a period of time
- Highest risk assets adjacent to vegetation
- Critical infrastructure interdependencies heightened operational risks
- Driving hazards: forest fire, soil movement, heat
Image 1: Point based analysis of each individual turbine
Image 2: An example of XDI’s mesh analysis for surrounding critical infrastructure
Image 2: Hazard risk indicators
NOTE: Hazards are constantly being updated. This represents an earlier analysis.
Image 2: Asset risk profile baseline vs. adaptation pathway
Contact our sales team
Let’s explore how our experts can deliver your best, most actionable physical climate risk insights.
Secure, assurable results
Delivered how you need it
By physical climate risk specialists
Related use cases
Asset management: Benchmark fixed income portfolios
Banking: Stress testing and scenario analysis
Asset management: Stewardship of equity and debt portfolios
Asset management: Climate resilience strategies for real asset portfolios
Banking: Reporting and disclosure
Asset finance: Due diligence
Commercial banking: Analyse your commercial property portfolio
Corporate Lending - Analyse your corporate lending portfolio
Retail banking - Analyse your residential mortgage portfolio
From simple, low cost analysis, to complex, detailed and specific,
XDI delivers actionable results
Our vision is not just to identify physical climate risks, but to mitigate them.
XDI can help you develop business plans for adaptation, helping you move from risk to resilience.
Talk to us today to find out more.
