Virgin Money gains greater control over climate change risk
Virgin Money is using Hometrack’s Climate Risk Analysis tool to gain an increased understanding of the impact of climate change on its mortgage portfolio.
Mark Thundercliffe, Chief Risk Officer at Virgin Money, summed it up by saying it allows them to “better understand the risks and opportunities in the current market while also planning accordingly for the future.”
In its 2022 annual report
, Virgin Money explained how, with Hometrack’s tool, their “data capability has been enhanced to further profile physical and transitional climate-related risk against the Group’s lending portfolio.”
With the help of Hometrack/Twinn data, Virgin Money’s “inaugural climate scenario analysis was completed in FY22 to assess possible future climate-related risks and exposures that may impact the Group. The analysis also enhances our ability to identify climate-related opportunities, and to assess the resilience of our business model. Climate factors have been incorporated into a suite of key risk indicators which monitor risk against appetite set by the wider Climate Risk Policy Framework.”
Virgin Money was able to include a map illustrating potential flood risk for retail mortgage customers in the report. Their analysis found that, “on a total volume basis, retail mortgages at high risk of flooding are 3% of the portfolio and those at very high risk are 1% of the portfolio.”