Does your bank consider physical climate risks and climate change scenarios?

The increase in extreme weather and climate events caused by climate change, such as droughts, storms, forest fires and floods, is having an increasing impact on the quality of loan portfolios. In addition to GHG emissions, physical climate risks are becoming key parameters for assessing the sustainability of business models in the banking and financial sector. This realization has prompted the ECB to mandate climate-related stress tests for the banks it oversees.

In order to fulfil the non-financial reporting obligations and to carry out the climate stress tests, information is required that goes beyond the information required by commercial banks to date. For example, knowledge of the threat to assets from extreme weather events is necessary to assess the so-called physical climate risks, as well as knowledge of the GHG emissions associated with the investments to assess transitory and regulatory climate risks.

The risk management of financial institutions is therefore challenged.

Do you already evaluate
physical risks inherent
to your loan portfolio?

Do you consider climate
change scenarios in your loan
appraisal approach?

Have you already taken
respective mitigation measures
(like disinvestments of
certain projects and sectors)?


Indispensable support for your risk management

With eSave ClimateRisks, MACS Energy&Water has developed a digital solution that can be used to determine relevant physical and transitory climate risks based on current geodata and climate scenarios. Compared to conventional (actual) methods, our analysis significantly improves the risk management of banks when evaluating individual financing or (existing) portfolios regarding climatic threat scenarios.


The MACS methodology for assessing physical climate risk follows UNEP-FI and ECB/European Systemic Risk Board guidelines and covers a portfolio's exposure to specific physical risks under current conditions and under two climate change scenarios projected to 2030 and 2050.

Information about the GHG emissions (Scope 3) financed by a portfolio can be calculated and made available by us in accordance with the GHG Protocol and the PCAF standard as well as the guidelines of the ECB.

We offer you a free and non-binding test of eSave ClimateRisks. Simply enter the postal-address of an asset in the form field. We will then send you an example evaluation of the climate risks affecting this address.

Address of your asset?

We send the sample result to: