Use Case Financial
Transition climate risk – Dynamic rating
The model assigns a dynamic rating to homes in France for the period 2024-2050, based on their Energy Performance Certificate (DPE) and current energy scenarios (including heating). This rating evaluates the energy transition risk of buildings in relation to the set targets. A default probability module is integrated, with the ability to add specific modules in future versions, as well as additional costs and KPIs to refine the analysis.
Challenges
Evaluating future energy scenarios
Precisely evaluating future energy scenarios and integrating these assessments into the building rating.
Balancing DPE and future energy scenarios
Determining an appropriate weighting between the current DPE and future energy scenarios to correctly assess transition risk.
Integrating market changes into dynamic rating
Incorporating changes in the real estate market, such as renovations and new constructions, into the dynamic rating.
Evaluating costs and KPIs
Including and evaluating various costs and performance indicators in the model to provide a comprehensive view of energy performance.
Adding new construction materials
Solution
Transition risk mapping: Provides a detailed map of the energy transition risk across the entire real estate market in France.
Dynamic evaluation and balanced weighting: Assigns a dynamic rating to homes in France for 2024-2050 by combining the DPE and future energy scenarios.
Adaptability to real estate market: Adapts to changes in the real estate market, such as renovations and new constructions.
Loan default probability module: Assesses the probability of default for bank loans related to the purchase or renovation of homes.
Web solution: Clear and intuitive presentation of results via a web application.
Tech stack
Results
Our solution offers a comprehensive assessment with three key components: the Dynamic Home Rating, which evaluates energy transition risks for homes; Transition Risk Mapping, providing a detailed overview of these risks across the real estate market; and the Loan Default Probability module, which predicts the likelihood of default on loans for home purchases or renovations. Together, these features deliver valuable insights for effective risk management and financial planning.
