Asset management: Climate resilience strategies for real asset portfolios
XDI worked with a global investment manager with Assets Under Management greater than one trillion US dollars to assess physical climate risks to its real assets portfolio.
How can XDI help?
- Identify high risk assets in real asset portfolios
- Assess adaptation options using XDI’s unique engineering-based approach
- Identify dependencies on surrounding power and transport networks
- Set your long-term resilience strategy
In this use case, XDI conducted a multi-asset portfolio analysis of thousands of built assets in which the client was invested. The portfolio analysis incorporated outputs under a range of climate scenarios and asset vulnerability assumptions.
The analysis helped identify assets at greatest risk from climate change, allowing the client to focus its future capex on targeted resilience measures.
The results were made available via XDI’s unique AdaptXDI module, enabling the client to test a range of cost-benefit analyses over different time periods and scenarios.
Results
Image: a client's assets distributed spatically and colour coded for risk profile
What next?
Having identified the high-risk properties in its portfolio, the investment manager wanted to understand these risks in more detail. It requested XDI to conduct an asset-level deep dive into the high risk properties and mitigation measures.
In subsequent years the client adopted XDI’s tools to screen new assets as part of its due diligence process.
Flood risk is identified as a material risk to the asset.
Flood mitigation measures shown in adaptation Pathway-1 reduce flood risk to manageable levels.
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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.