FIS’ & PwC’s Data-Driven Answer to Reducing Climate Risk

Climate change is estimated to cause between US$1.7tn and US$3.1tn in damages per year by 2050
Martin Sarjeant, Head of Risk Solutions & Climate Risk at FIS explores how PwC & FIS’ Climate Risk Financial Modeler supports regulatory compliance

Climate risk is impacting businesses globally daily and is becoming an increasing priority for many to build resilience into operations and strategy.

The WEF reports that climate change and its effects are estimated to cause between US$1.7tn and US$3.1tn in damages per year by 2050, including to infrastructure, property, agriculture and human health.

To support businesses across all industries better assess, reduce and report their exposure to the physical risks of climate change, leading financial technology company FIS has developed a Climate Risk Financial Modeler. 

The new SaaS offering uses FIS’ powerful risk modelling and market leading insurance analytics, combining client data with third-party climate data to be individually tailored to the risk management needs of corporates and financial institutions.

It encourages proactive foresight into potential climate-related risks – hopefully reducing the damages.

Martin Sarjeant, Head of Risk Solutions and Climate Risk at FIS, is a dynamic solution leader responsible for delivering product innovation to help drive growth and meet regulatory requirements. 

“The effects of climate change are all around us, and alongside the increasing prevalence of climate-focused regulations such as those from the ISSB and SEC, climate risk is now becoming a bread-and-butter element of corporate risk management for businesses and financial institutions,” he explains. 

“With firms now needing to report on their activities in much more detail, many are still unsure how or if these regulations apply to them as climate risks are not the typical kinds of risks that most companies have had to actively manage or measure until recently.

Martin Sarjeant, Head of Risk Solutions and Climate Risk at FIS

“Each industry has its own unique exposure to climate change and the clock is ticking for businesses to manage and disclose their climate risks. Over half of UK businesses say they have been impacted by flooding and 48% from storms and heatwaves,” he continues.

“By harnessing technology like FIS’ Climate Risk Financial Modeler, businesses can better understand their exposure and strategic positioning from a climate risk perspective, which will support their climate-related regulatory compliance and allow them to take practical steps to mitigate the risks.”

Partnering with PwC for sustainable sustainability

FIS’ Climate Risk Financial Modeler has been created in collaboration with PwC, and uses data from PwC US alongside information from physical assets such as its buildings and contents.

"PwC's climate risk modelling services team takes pride in helping companies make informed, predictive decisions around escalating climate risks," said Richard de Haan, Global Risk Modeling Services Leader at PwC US. 

"By providing a dataset that underpins FIS’ Climate Risk Financial Modeler, our team is helping to empower businesses of all sizes and sectors to shore up their operations against extreme weather events, address climate reporting requirements, and drive efficiency and sustainability." 

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Is climate modelling the answer to reduced risk?

The combination of FIS, PwC, client and global climate data allows users to perform powerful modelling on various weather-related perils at both local and global levels and determine the effects of climate change on their operations.

By giving companies a comprehensive insight into climate risk, clients can gain a meaningful assessment of their operations, investments and strategic positioning from a climate risk perspective, as well as efficiently support their climate-related regulatory compliance.

“The launch of the FIS Climate Risk Financial Modeler is the latest chapter in our long history of market-leading risk management software and services throughout the money lifecycle,” said JP James, Head of Treasury and Risk at FIS.

“Corporate climate risk and the related regulatory pressures are becoming increasingly important for executives and risk managers of all levels and across all industries. With this launch, FIS is building on our best-in-class insurance risk application capabilities to respond to the challenges our clients face in understanding the potential impacts of climate change on their business.” 

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