BNP Paribas & Baringa develop climate model

BNP Paribas is developing its climate scenario analysis capability with the use of Baringa’s Climate Change Scenario Model.

This partnership between BNP Paribas and Baringa will help to develop the standards for embedding climate scenario analysis within the bank. BNP says the establishment of an integrated climate scenario analysis capability will bring an additional objective and data driven approach to climate strategy and commitments, to climate risk management, client engagement and to both internal and external reporting.

Marc Irubetagoyena, Head of Group Stress Testing and Performance, Planning & Synthesis at BNPP said: “This is an important step for BNPP in the development and the effective implementation of our climate risk management framework across our organisation. Baringa is playing a leading role in helping the Financial Services sector globally to develop their climate strategies and to ensure they are credible and evidence based. This partnership will contribute to deliver the foundations of BNPP climate scenario analysis set-up.”

Antoine Bezat, Head of Stress Testing Methodologies and Models at BNPP, said: “Climate scenario analysis is a critical strategic capability for BNPP. We are delighted to be working with Baringa who are deep experts in this topic. They bring 20 years of experience of energy system and climate transition modelling, as well as their experience as leaders in deploying climate strategies into many of the largest banks in the world.

“Baringa’s Climate Scenario Model stands out for its breadth of sector and asset coverage, the integration of transition and physical risk, and the ability to provide risk metrics down to the individual asset level. The modular and customisable nature of the solution will enable us to develop our own climate scenario and risk framework over time, to the specific needs of BNPP”