Portfolio Risk Management

Portfolio Risk Management

Identify, quantify and prioritise environmental risk across lending and investment portfolios to strengthen portfolio risk management, credit and investment decisions and engagement.

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The Challenge

Financial institutions need to understand where environmental risk is financially material across their lending and investment portfolios. Yet, existing solutions rarely capture vulnerabilities that sit several tiers upstream in portfolio companies’ value chains.

Without granular location-specific supply chain intelligence, it is difficult to identify portfolio hotspots, compare counterparties or holdings and determine where deeper analysis, engagement or risk review is most needed.

Our Approach

Natcap enables financial institutions to locate, quantify and communicate financially material nature-related physical risks across lending and investment portfolios.

We identify which sectors, counterparties, holdings and exposure clusters face material nature-related risk. By mapping key raw materials and commodities to likely production regions, we assess how nature-related physical events could affect supply chain resilience and financial performance.

For each relevant raw material and production region, we assess:

Likelihood of occurrence or disruption: Evaluating vulnerability using dependency data, state-of-nature datasets and environmental hazard indicators.
Potential financial consequence: Assessing the relative magnitude of the expected shock and how market dynamics and business exposure may influence its financial consequences.

Screen Lending and Investment Portfolios Screen lending and investment portfolios to identify high-exposure sectors, counterparties, holdings and exposure clusters

Assess Risk Exposure Assess exposure at the intersection of production geography, environmental hazard, commodity vulnerability, and financial consequence for each counterparty and holding.

Prioritise Areas for Deeper Analysis Prioritise areas for deeper analysis, risk review, and engagement

TOUCH

Transaction Diligence

Strengthen credit, underwriting and investment decisions with financially relevant insights.

Why Natcap

Environmental intelligence built for better business decisions.

Granular Portfolio Insights

Move beyond high-level environmental scores with granular asset- and commodity-level insight across sectors, counterparties and holdings.

Location-Specific Intelligence

Map key raw materials and commodities to likely production regions, revealing nature-related physical risks that may sit several tiers upstream.

Financially Relevant Outputs

Translate nature-related physical risk into clear insight on financial exposure across your lending and investment portfolios.