CASE-studie

Climate Risk Screening for Banks: Smarter Real Estate Lending Decisions

Discover how banks are using climate risk tools to evaluate loan portfolios and reduce exposure to risky assets.

August 12, 2025

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Vegard Blauenfeldt Næss

The ESG Risks Hiding in Your Loan Book

A property gets financed. Two years later, it's hit by flooding. Insurance doesn’t fully cover it. Value plummets. That’s not bad luck - it’s a gap in ESG screening.

Climate risk - physical, transition, biodiversity - is now a material part of loan evaluation. Yet many banks still rely on outdated models that ignore these risk types.

Why Climate Risk Screening Matters

  • Higher risk of default in exposed regions
  • Increased disclosure requirements for financed emissions
  • Reputational exposure tied to non-aligned lending
  • ESG becoming part of credit risk models

How Telescope Supports Bank Risk Teams

  • Upload property addresses and get automated climate/biodiversity risk profiles
  • Segment results by risk type (physical, transition, biodiversity)
  • Export structured reports for credit reviews or regulatory audits
  • Get portfolio-wide exposure insights instantly

The Business Value for Banks

  • Faster pre-lending ESG assessments
  • Better visibility into long-term portfolio risk
  • Simplified compliance with evolving EU rules
  • Data-driven capital decisions

Want to uncover ESG risk across your lending portfolio - before regulators or market shifts force your hand?

Request a risk scan demo today!

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