Atom Bank has announced a partnership with climate tech firm Kamma, in a bid to enhance its understanding and management of climate-related risks. Through this collaboration, Atom will gain access to Kamma’s comprehensive climate suite, which offers insights into the physical and transition risks associated with Atom’s mortgage portfolio. Kamma will also provide analytics on Atom’s financed emissions, improved PCAF scoring, and climate credentials on pools of assets for securitization purposes.
The devastating impact of climate-related disasters across the globe has highlighted the urgency for banks to address their lending’s impact on the environment. Customers, investors, and regulators are increasingly demanding that banks take responsibility and support the transition to a net-zero economy. To meet these demands, banks face new reporting and disclosure requirements and will likely encounter substantial new regulations and risks in the future, particularly mortgage lenders.
In the UK, greening the country’s property stock is crucial for reducing costs for households and decreasing harmful emissions. Kamma’s solutions will play a vital role in supporting risk management, regulatory reporting, and green asset qualification. By providing clear guidance in these areas, Kamma will assist Atom in aligning its lending practices with sustainability goals.
Atom Bank has committed to becoming a carbon-positive bank by 2035. Its digital and cloud-native business model inherently offers greater efficiency and has a lesser environmental impact compared to traditional banking models. Additionally, Atom’s premises and supplier selection policies aim to further reduce emissions.
The partnership with Kamma marks the next step for Atom in addressing financed emissions. Advanced analytics will be utilized to help the bank and its customers reduce their carbon footprint. Phase one of the partnership involves a thorough review of Atom’s mortgage portfolio, with strategic support from the Kamma team. In phase two, new propositions, products, and customer journeys will be developed to support Atom’s sustainability strategy.
Kamma has developed a comprehensive climate profile of UK property, utilizing extensive modelling and high-grade address matching. By closing data gaps, integrating and calibrating data, and employing unique analytics, Kamma provides a clear roadmap towards achieving net-zero targets for UK property.
Edward Twiddy, Director of ESG at Atom Bank, expressed the bank’s commitment to embracing sustainability and addressing climate-related risks through this partnership. With Kamma’s expertise and solutions, Atom aims to become a leader in sustainable banking and contribute to a fair and rapid transition to a net-zero economy.
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