Mount Street launches climate risk solution powered by Jupiter Intelligence
London, UK – 23 November 2022 – Mount Street Group (‘Mount Street’), a leading global third-party loan servicing and credit asset management firm, today announced the launch Site-Specific Climate Risk Assessments as part of its broader client service offering, powered through a relationship with Jupiter Intelligence (‘Jupiter’), a leading provider of predictive data and analytics for climate risk management and resilience. The Climate Risk Assessment tool utilises a bespoke climate risk model that can be targeted on individual real estate assets to assess site-specific climate and weather-related risks. The solution works to analyse the physical attributes of changing weather patterns, such as rainfall, heat, water scarcity, wildfires and wind, amongst other factors, indicating climate-related risk changes in 10-year intervals whilst modelling risk over time, resulting in a more accurate identification of risk characteristics. Its application is two-fold:
- It allows the specific risk of climate related incidents to be assessed over timeat the asset location; and
- It informs the need for improvements to be made to a building’s infrastructure and systems to ensure that it remains a viable asset that can withstand the effectsof changing climate. This in turn informs CAPEX allocation requirements.
From a debt perspective, Site-Specific Climate Risk Assessment can also build data into clients’ whole loan books and provide risk forecasting measures to enhance risk analysis. Given the increased frequency of ‘abnormal’ climate events, which are now being seen on a regular basis such as rainfall, water scarcity, wildfires, this tool is essential for minimising investment risk.
The tool is available to Mount Street’s clients as a standalone assessment or as an add-on to Mount Street’s portfolio of technical, environmental and ESG due diligence and risk screening services.
Jim Gott, Senior Director and Head of Asset Diligence, Asset Surveillance and ESG at Mount Street, commented: “Climate change has created a number of challenges and implications over the past decade and continues to become an increasingly prominent risk factor. 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. In recent months, this has even included property damage from wildfires, a phenomenon that many didn’t expect to see in the UK. We created this bespoke tool with our partner, Jupiter, in direct response to the growing threat of climate change and as a means of equipping our clients with the knowledge and analysis required to make informed investment decisions and protect their clients’ funds. The application of Site-Specific Climate Risk Assessment combined with our technical and environmental expertise and ESG due diligence allows us to monitor climate risks accurately and effectively over time, ultimately enhancing our advice capabilities and facilitating a positive change.”
Paul Lloyd, CEO of Mount Street, commented: “At Mount Street, we are committed to providing our clients with innovative solutions to enhance the full suite of services that we offer – we actively focus on having a wider breadth of service and a deeper knowledge than others in our field. ESG and climate change continues to be a strategic priority for the large majority of businesses, and we are pleased to have partnered with Jupiter to create this Site-Specific Climate Risk Assessment tool to respond to our clients’ most pressing needs. This tool will be rolled into our wider ESG offering and services, further supporting our long-term commitment of providing comprehensive end-to-end services. We truly believe that assessing climate change is a fiduciary duty to our clients, their end investors and ultimately, our planet.”
Mount Street Group
Ellie Sweeney / Eve Kirmatzis / Erica Lewis / Millie James
About Mount Street Group
Mount Street is a leading global third-party loan servicing and credit asset management firm with ca €125 billion of assets under management. Mount Street provides a full suite of services and products across the credit, real estate backed, asset backed and structured finance markets in EMEA, the USA and Australia. Leveraging its proprietary technology and a global presence across 11 offices in key financial centres worldwide, Mount Street has built an international team of seasoned banking, real estate, infrastructure, shipping and technology professionals to assist institutional investors in capturing value across the lifecycle of their credit and other investments.