SLP provides Climate Risk Screening and Vulnerability Assessment (CRVA) services that follow the principles of the climate risk assessment frameworks of the Asian Development Bank (ADB), World Bank and other international financial institutions, and are consistent with recognised international good practice.

The primary objective of a Climate Risk Screening and Vulnerability Assessment (CRVA), from a lender’s perspective, is to identify, assess and evaluate the potential for current and future climate-related hazards to materially affect the physical integrity, operational performance, financial viability, debt-servicing capacity and/or value of a project or asset.

The assessment considers the nature and severity of relevant climate hazards, the exposure, sensitivity, vulnerability and adaptive capacity of the project or asset, and the potential consequences of material climate risks over the relevant financing and asset life. It also evaluates whether appropriate design, engineering, operational, management and adaptation measures are in place to manage identified risks and maintain the long-term resilience of the project or asset.

SLP’s CRVA approach is proportionate to the nature, scale, location and complexity of the project or asset and may be applied across different sectors and asset types. Depending on the requirements of the assignment, assessments may incorporate climate projections and scenarios, consideration of future climate conditions, assessment of climate-related impacts on critical infrastructure and operations, and evaluation of the adequacy of existing or proposed resilience measures.

A key output of the CRVA is the identification and evaluation of practical and proportionate adaptation and resilience measures in response to material climate risks. This includes assessing the effectiveness of existing measures, identifying gaps in the resilience of the project or asset, and recommending appropriate physical, engineering, operational, management and/or monitoring measures to address those gaps. Where appropriate, SLP also considers adaptive management, enabling resilience measures to be reviewed and strengthened as climate conditions, project circumstances and the understanding of climate risks evolve.

The CRVA provides lenders, investors and project owners with a clear understanding of residual climate risk and the measures required to manage that risk, including potential implications for financing, insurance, future capital expenditure, operational continuity and long-term asset resilience.

Our Climate Risk Screening and Vulnerability Assessments (CRVA) can be incorporated into an overarching Environmental and Social Due Diligence (ESDD) or Lender Technical and Environmental/Social Assessment (LTESA) assignment prepared for a particular transaction, or presented as a bespoke standalone report, depending on the client’s requirements.

A selection of project brochures for our Climate Risk Screening and Vulnerability Assessments (CRVA) service can be found on our Environmental and Social Due Diligence Services page.

Should you require any further information regarding our Climate Risk Screening and Vulnerability Assessment services please Contact Us.