The bank will be able to access Kamma’s climate suite, which offers insight into physical and transition risks in its mortgage book.
The tech firm will also provide analytics on Atom’s financed emissions, PCAF scoring (a method of data quality evaluation) and climate credential on pools of assets to be used for securitization.
Atom has pledged to become a carbon positive bank by 2035, noting that its “digital, cloud-native business model” was “more efficiency and less impactful on the environment” compared to traditional banks.
The firm said that the next step was to look at its financed emissions, and phase one of the partnership would be to undergo a “deep review” of its mortgage portfolio and phase two would be to develop new propositions, products and customer journeys.
Banks must look at climate impact
Edward Twiddy (pictured), director of ESG at Atom, said: “Banks have a crucial role to play in solving the climate challenge. Too much lending has been done by banks that has not taken account of the impact we are having on the climate, and it is important that this is changing.
“As a digital bank, we will use the best technology available to ensure we accurately measure emissions, understand risk and then help our customers to reduce their bills, increase the value of their property and be ready for a zero carbon future.”
He continued: “The damage we have already done is clear, and we do not see any reason to delay action when the evidence and imperative for change is in front of us. I’m delighted that we are partnering with Kamma to benchmark our emissions, manage our risks and most importantly, to provide practical ways for Atom and our customers to face into the future.”
Kamma CEO, Orla Shields, added: “Our strategy is to partner with market leaders in order to support the development of bleeding edge propositions and light a pathway to Net Zero for other organisations. We’re hugely excited about the opportunity to partner with Atom Bank on their climate journey”.
