On behalf of Deloitte, CLA acted as subcontractor to the EBRD’s Corporate Climate Governance (CCG) Facility to help XB strengthen its climate-risk capabilities and develop a full institutional transition plan. CLA delivered the core technical work—building XB’s climate-risk foundations through physical and transition risk assessment, climate scenario analysis, and a portfolio-level climate stress-testing framework. The Assignment was delivered in two phases. Phase I focused on diagnosing and upgrading XB’s climate-risk practices, integrating scenario analysis and stress-testing outputs into the Bank’s risk framework. Phase II, linked to XB’s commitments under an EBRD debt transaction, expanded the scope to develop the Bank’s institutional transition plan, covering strategic alignment, governance, risk management, and the definition of climate-related metrics and targets.
· Conducted a comprehensive climate-risk materiality assessment integrating multiple time horizons (short-, medium-, and long-term) and NGFS-aligned scenarios to identify material physical and transition risk drivers across XB’s portfolio.
· Built a quantitative climate-risk assessment framework, including sector-specific impact pathways, financial transmission channels, and counterparty-level climate vulnerability indicators.
· Developed a climate risk scorecard for systematic scoring of counterparties and sectors, combining physical hazard exposure, transition sensitivity, macro-financial impacts, and management quality.
· Designed and implemented a portfolio-level climate scenario analysis, quantifying the impacts of multiple climate pathways on key financial metrics and credit risk parameters.
· Developed a climate stress-testing module, translating physical and transition risk shocks into climate-adjusted PDs, expected losses, and portfolio risk movements.
· Produced climate heatmaps and thematic diagnostics to identify priority sectors, high-risk concentrations, and exposures requiring strategic intervention.
· Embedded climate-risk insights into the Bank’s risk management framework, including credit assessment processes, portfolio monitoring, early-warning indicators, and risk appetite considerations.
· Supported the development of XB’s transition plan, using quantified scenario outcomes to inform strategy, governance enhancements, metrics and targets, and sector-level transition actions.
