Use Case
Analyse climate and ESG exposure across entire portfolios
Many organisations do not need to assess climate risk one entity at a time. They need to understand exposure across entire portfolios.
For banks, insurers, investors, governments and large enterprises, climate and ESG risk exists across large populations of customers, suppliers, policyholders, borrowers, investments or counterparties.
The challenge is scale.
A portfolio may contain thousands or millions of entities. Each entity may have different locations, sectors, risk indicators and ESG characteristics. Without a structured dataset, it is difficult to understand where exposure sits, how risk is distributed, and where action should be prioritised.
The Portfolio Challenge
Portfolio-level analysis requires more than entity-level data. It requires the ability to see patterns.
Organisations need to understand:
This is difficult when data is incomplete, fragmented or inconsistent.
Why Portfolio Analytics Matters
Portfolio analytics turns climate and ESG data into a decision-making tool. It can support:
Beyond single-entity analysis
It also helps organisations move beyond single-entity analysis.
A single company may not appear material in isolation. But when many similar entities share the same geography, sector or risk factor, the portfolio may have a material concentration of exposure.
How the NCED Helps
The NCED provides a structured dataset that allows organisations to assess climate and ESG exposure across entire populations. It connects entity-level attributes to portfolio-level analysis, enabling users to move between:
This allows organisations to understand both the big picture and the underlying drivers.
Key Analytical Dimensions
Geography
Analyse risk by region, postcode, local area or other geographic grouping. This helps identify physical risk concentration and regional exposure.
Sector
Assess transition risk and economic exposure by industry. This helps identify which parts of a portfolio may be more sensitive to decarbonisation, regulation or changing demand.
Entity
Drill down into individual businesses to understand the attributes contributing to risk.
Risk Type
Separate physical risk, transition risk, ESG indicators and emissions context.
Time
Track changes in exposure across reporting periods or refresh cycles.
Practical Workflows
Portfolio Baseline
Create an initial view of risk across a portfolio. This can help answer:
- What does the portfolio look like?
- Which entities can be matched?
- What data is available?
- Where are the highest-risk areas?
- What is the overall exposure profile?
Concentration Analysis
Identify where risk is clustered. This may include:
- concentration by geography
- concentration by industry
- concentration by hazard type
- concentration by customer segment
- concentration by supplier type
Segment Comparison
Compare different parts of the portfolio. For example:
- SME vs corporate customers
- insured vs uninsured segments
- high-value vs low-value accounts
- metro vs regional exposure
- sector-by-sector risk
Portfolio Optimisation
Use the data to inform strategic decisions. This may include:
- adjusting risk appetite
- targeting lower-risk segments
- prioritising engagement with exposed customers
- informing pricing or underwriting
- supporting transition planning
- identifying growth opportunities in resilient sectors
Practical Outputs
The NCED can support:
The Strategic Value
Portfolio analytics allows organisations to move from visibility to action. It helps answer:
This matters because climate and ESG risk is not only a reporting issue. It is also a portfolio management issue.
NCED enables organisations to understand climate and ESG exposure at portfolio scale - supporting better reporting, stronger governance and more informed strategic decision-making.