Climate exposure insights help future-proof firm's investment decisions

The client is a top-tier global investment firm.

Specialising in alternative assets, including private equity and infrastructure, they were looking for assistance while considering a multi-million dollar utilities infrastructure investment.

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The challenge

Our client's investment was in a highly climate-vulnerable region, where the fund had limited experience.

As a result, they required a deeper understanding of potential extreme weather-related losses throughout the investment tenure. 

They also needed to know measures they could take during the term to preserve and enhance asset value – and maintain investment attractiveness in the face of climate change. 

Action

To address these concerns, we provided: 

  • Physical climate risk analysis on near- and long-term weather impacts in the region 
  • Comparative insights across portfolio geographies 
  • Quantified potential losses over time, including worst-case scenarios 
  • An outline of risk management solutions, including risk mitigation and transfer 
  • Timely presentation of findings to the investment committee, within an ambitious deadline 

Result

Equipped with these detailed insights, the firm: 

Made an informed investment decision

With enhanced confidence in asset resilience.

Established an action plan for resilience building

With these measures achieving asset owner buy-in.

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