The client needed to assess physical and transition risks to understand climate effects on their portfolio, including catastrophe types and transition drivers.

Solytics developed a comprehensive risk assessment framework:

1. Evaluating all potential physical risks like typhoons, storms, landslides, earthquakes, tsunamis, sea-level increase, and other climate change scenarios.
2. Assessing transition risks from government policies and technological advancements.
3. Defining Transition Risk (TR) settings based on NGFS climate scenarios.
4. Conducting climate stress tests and portfolio optimization by calculating Climate Value at Risk (VaR) and drift between Physical Risk and Transition Risk.

• Improved understanding of climate-related vulnerabilities on their investment portfolios.
• Enhanced risk management and mitigation strategies.
• Optimized investment portfolio for climate resilience.