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Climate Risk

Understand how climate risk affects your borrowers, portfolios, and long-term resilience

For financial institutions, climate risk is increasingly connected to governance, strategy, credit assessment, portfolio monitoring, and reporting. We help you translate broad climate risk expectations into practical internal frameworks that hold up to regulator, board, and investor scrutiny.

  • Physical risk across floods, drought, heat, and other hazards
  • Transition risk from policy, technology, and market shifts
  • Portfolio and sector exposure mapping
  • Climate risk governance and management frameworks
The two sides of climate risk

Physical risk and transition risk both affect the balance sheet

TCFDIFRS S2CBK Climate Risk GuidanceNGFS scenarios

Physical risk is the risk that climate hazards — such as floods, drought, heat stress, and shifting rainfall — damage collateral, disrupt borrowers, and weaken the sectors an institution lends to. In Kenya, events such as the 2024 floods have already tested the resilience of lending books and insurance portfolios.

Transition risk is the risk that the shift to a lower-carbon economy — through policy, technology, and changing market and consumer preferences — reduces the value of certain assets, sectors, and business models. Both types of risk can affect credit quality, collateral, and long-term strategy.

We help institutions understand where these risks sit in their portfolios, how material they are, and what practical steps reduce exposure over time.

What we assess and build

From exposure mapping to a working climate risk framework

We combine climate and sector expertise with a finance-aware view of your portfolio, so the output is usable by credit, risk, and the board.

Physical risk assessment

We assess exposure to floods, drought, heat stress, and other hazards across the counties, sectors, and collateral your institution is exposed to.

Transition risk assessment

We evaluate how policy, technology, and market shifts could affect the value and creditworthiness of carbon-exposed sectors in your book.

Portfolio exposure mapping

We map climate exposure across sectors, counties, and borrower segments so you can see where risk concentrates.

Borrower and sector risk tools

We design practical tools to assess climate risk at the borrower and sector level and integrate them into credit processes.

Scenario and stress considerations

We help you think through climate scenarios and stress considerations in a way that is proportionate to your size and data maturity.

Climate risk governance

We design the policies, roles, and reporting structures that embed climate risk into governance, strategy, and risk management.

Kenya spotlight

County-level climate hazard data for all 47 Kenyan counties

Our platform includes hazard risk data across all 47 counties and multiple hazard types and time horizons, so exposure can be assessed where your borrowers and collateral actually sit — not at a generic national average.

Explore the Kenya view
47
Counties covered
6+
Hazard types
3
Time horizons
RAG
Risk ratings

Turn climate risk into a manageable part of your strategy

Start with a readiness diagnostic to see how prepared your institution is to identify, govern, and report climate risk, or speak with our team about your portfolio.

Stephen Mutimba · stephen.mutimba@eclimateadvisory.com · +254 722 721680