Tackling Climate Change

As the impacts of climate change and global warming become clearer, regulators and supervisory authorities are focusing their attention on sustainability-related themes. Radical changes of regulatory expectations and policy actions at national and European level are the consequences. Now, more than ever, financial institutions need to understand the significance of integrating environmental, social and governance factors (ESG) into their investment decisions.

This requires new risk management approaches. The inclusion of ESG factors into a bank’s governance framework, risk management procedures and disclosure of climate-related information not only meets the regulatory expectations, it also mitigates negative impacts on our environment and helps to uncover cost saving opportunities for your company.

Are you interested in CLIMAID and would like to test its functions? Contact us for free access to our demo version and click through our tool:

KPMG Experts

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SAS Hackathon 2021 Winner

SAS, a software provider in the field of analytics and artificial intelligence, annually honors the most innovative problem solutions as part of a global hackathon.

With CLIMAID - an algorithm that automatically identifies ESG risks and creates an ESG risk score for all companies with an international securities identification number (ISIN) - KPMG Austria represents this year’s winner for the EMEA (Europe, Middle East & Africa) region.

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CLIMAID: The Solution

KPMG Austria has created an ESG tool for the identification and further analysis of ESG risks. This tool is built in a cloud-based Microsoft solution that provides the technical infrastructure for deterministic methods and cutting-edge technologies (natural language processing, machine learning), which offer the ability to collect, process and analyze data. Our advanced analytical solution allows you to identify and quantify your ESG risks, aiming to improve your corporate strategies and sustainability-related disclosure. CLIMAID meets the highest standards and is guided by the recommendations regarding the management of ESG risks made by the European Banking Authority (EBA) (EBA/REP/2021/18):

CLIMAID Solution
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A Holistic and Individual ESG Evaluation

CLIMAID identifies physical and transition risks of corporate and retail loan portfolios at transactional level by automatically creating ESG risk scores. Our risk assessment covers all regions and industries and enables the assessment of single deals worldwide. This allows the comparison with other regions, industries as well as other transactions in general. The final ESG score can be also separated in various sub scores, aiming to illustrate the different risk drivers. Furthermore, our ESG analysis determines an approximated carbon footprint at transactional level:

- ESG Risk Score


- Environmental Risk Score (E)


- Social Risk Score (S)


- Governance Risk Score (G)

- Transition Risk Rating (Region/Industry)


- Physical Risk Rating (Region/Industry)


- Carbon Footprint


- Resilience Score

Moreover, CLIMAID allows its users to create custom dashboards. The user can filter information and visualize outcomes to further analyze sub portfolios, aiming to identify risk clusters. In addition, CLIMAID automatically produces a report with all risk scores and descriptions. This report serves as valuable instrument for mapping out ESG strategies and adapting a company’s practices.

Single Deal Analyses
Ansicht CLIMAID
Customized Dashboards
Ansicht CLIMAID
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A more Convenient ESG Reporting

CLIMAID not only provides flexible and comprehensible ESG risk evaluations, it also serves as convenient tool for sustainability-related reporting. Our tool helps you to make your disclosure of sustainability-related information more transparent, comprehensible, and especially more convenient. CLIMAID enables you to efficiently assess key performance indicators, particularly metrics that need to be disclosed on an obligatory basis. This involves amongst others the calculation of the Green Asset Ratio. By the end of 2022, European banks will be required to disclose this critical metric. By providing comprehensive disclosure templates, CLIMAID supports its users to cope with the variety of sustainable reporting requirements. Moreover, our tool compares the individual transactions against the criteria of the EU Taxonomy in order to evaluate how ‘green’ a client’s single deals are.

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An Overview about our Tool Features

CLIMAID is applicable for front and back office and can be used either by paying a license fee or by requesting single modules. Our analyses draw on the industry expertise of our global team of ESG specialists and market experts and fulfill the highest market standards.

Dienstleistungen

Did you like the free trial and are you interested in a comprehensive analysis, quantification, and disclosure of your ESG risks? Then contact us! Our consultants and ESG experts are happy to support you directly and will contact you upon request.

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Why should Companies get a CLIMAID ESG Evaluation?

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Compliance with regulatory and market standards

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Interaction with analysts, market experts and ESG specialist

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Proof of alignment with the EU Taxonomy

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Worldwide coverage & high granularity

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Forward-looking, long-term risk management by undertaking stress tests

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Custom dashboards & quick implementation

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Prevention of financial losses and cost saving opportunities

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Amplification of commitment and satisfaction of various stakeholders

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Comprehensive reporting solution (KPIs, disclosure templates)

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Industry recognized (SAS Hackathon 2021 Winner)

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