African financial institutions are already exposed to climate risk through their portfolios and operations. Extreme weather events, infrastructure damage, and disruptions to food and energy systems are affecting borrowers, assets, and insurance claims across the continent. Given Africa’s high vulnerability and reliance on climate-sensitive sectors, unmanaged climate risk can quickly translate into financial losses.
At Jaya Karbon Kounsel, we support financial institutions such as banks and insurance companies to understand and manage the financial risks arising from climate change. We help them identify and assess climate risks across lending, underwriting, and investment portfolios. We begin by building a clear understanding of climate change basics, including physical risks such as floods and droughts, and transition risks linked to policy, technology, and market changes. We support the mapping of physical, transition, and liability risks to sectors, geographies, and products, and their linkage to traditional financial risks such as credit, market, underwriting, and operational risk.
We also support climate scenario analysis and stress testing to assess how different climate futures could affect financial performance and resilience. Using recognised scenario frameworks, we help institutions explore orderly and disorderly transitions and high-physical-risk pathways, strengthening risk appetite, capital planning, and strategic decision-making.
Get in touch to start your climate risk assessment journey.