Hometrack has partnered with Twinn by Haskoning to provide Leeds Building Society with physical climate risk data for flood, subsidence and coastal erosion.
The solution integrates risk data directly into mortgage applications and portfolio analysis, helping Leeds Building Society manage climate-related risks.
Leeds Building Society wanted a way to accurately measure climate risk after finding open-source data too generic.
The plan was to use reliable climate risk data in live decision-making for new mortgages and for stress testing its portfolio.
Graeme McRitchie, head of prudential and enterprise risk at Leeds Building Society, said: “Our strategy has always been to be a fast adopter in this space.
“We wanted to act quickly in response to regulation, but with a robust approach rooted in reliable data.
“The reliability element was key; we didn’t want to blindly attribute climate risk scores to tick a compliance box.”
McRitchie added: “We wanted data we could interrogate, understand and use to make robust decisions.”
The Hometrack and Twinn partnership led to a system that uses Hometrack’s mortgage automation and property valuation platform to add climate risk data to Leeds Building Society’s automated decisioning.
Neil Lewis, head of credit decisioning at Leeds Building Society, said: “The data is ready to use at the point we need it – we don’t have to amend, update or cleanse it.
“It’s a seamless process that enables real-time decision making.”
Graeme Gillespie, director of commercial strategy at Hometrack, said: “This has been a really successful collaboration with Leeds Building Society and Twinn.
“The Bank of England recently issued Consultation Paper 10/25 in which they call for much greater connectivity between climate risk policy and operational execution.
“Leeds already has a platform to achieve this that really is best in class.”
Rob Carling, Twinn channel sales manager at Haskoning, said: “Using the solution, Leeds can see aggregated and property-level risk ratings for various Representative Concentration Pathways (RCPs) and emissions scenarios.
“This means it can quantify climate risk across its portfolio – and understand how that risk may change over time.”
