Climate risk tool for real estate assets launches

Third-party loan servicing and credit asset management firm Mount Street Group has launched a new tool for real estate assets to assess climate and weather-related risks, the firm told New Private Markets.

The tool was created in partnership with Jupiter Intelligence, a predictive climate data provider, and is available to Mount Street’s clients as a standalone assessment or as an add-on to its ESG due diligence and risk screening services. 

The Site-Specific Climate Risk Assessments tool analyses weather patterns to determine climate-related risks in 10-year intervals. It allows location-specific risks of climate incidents to be assessed over time and informs clients if improvements need to be made to a building’s infrastructure and systems. 

From a debt perspective, the new tool can build data into clients’ whole loan books and provide forecasting measures to enhance risk analysis.   

The tool was launched in “response to the growing threat of climate change” and as a means of equipping clients with the analysis required to make informed investment decisions, said Jim Gott, senior director and head of asset diligence, asset surveillance and ESG at Mount Street.

“Climate change has created a number of challenges and implications over the past decade and continues to become an increasingly prominent risk factor,” he said. “We are seeing greater volumes of assets in danger of becoming stranded due to climate-driven concerns, such as rising temperatures and natural disasters including flooding, storms and drought.”