First Street

Our latest National Risk Assessment: Portfolio Pressures found 57 banks could cross the 1% material risk threshold in at least the 1% annual likelihood scenario. This signifies a material risk that could impact financial performance, operations, reputation, and legal standing. These banks hold over $627.4 billion in outstanding real estate loans, representing 10.9% of all CRE and RRE loans nationwide. While the risk is significant, it is not unavoidable. With First Street's climate risk financial modeling (CRFM), banks can identify their risk, employ strategies to mitigate it, and even uncover business opportunities. Link to full report: https://lnkd.in/gTBFQWss #ClimateRisk #CRFM #RiskManagement 

As we see increasing historical climate events, Climate Abandonment Areas are set to become more prevalent, posing significant human and economic challenges. Thank you to Abrahm Lustgarten for highlighting our research on this issue in today's The New York Times op-ed. A key insight from our report reveals that over 3.2 million Americans have already vacated high flood-risk areas, creating Climate Abandonment Areas. An additional 7.5 million are projected to follow suit over the next 30 years. Download the full report to learn more: https://lnkd.in/gjD6nUCk #climaterisk #climatechange #CRFM #climateabandonment

Climate Week 2024 - what a week it has been! ▶ We launched our 11th National Risk Assessment: Portfolio Pressures, which finds 57 banks with a total of $627 billion in real estate loans (10.9% of all loans in the country), could face “material financial risk.” Join our webinar (10/2) to explore the findings: https://lnkd.in/gSkW6WYM ▶ We hosted the Climate Risk Readiness Roundtable with our partner, Persefoni, to discuss how financial institutions and corporations can move from risk to value creation. And this was just the start of this important conversation. In February First Street is hosting Forecast, the inaugural, invitation-only event that will bring together the top 300 leaders of the climate risk financial modeling (CRFM) community to network, learn, and drive the category forward. Register your interest in the event here: https://lnkd.in/gkbh2tQG ▶ And last but not least, Zillow announced that it is introducing climate risk data, powered by First Street, on all for-sale properties across the U.S., which is featured as a top story on LinkedIn News today! https://lnkd.in/dzKP8YPk #ClimateWeek #ClimateRisk #CRFM #Zillow #Forecast

Welcome Philip Cunningham, our new Director of Wildfire Modeling! Phil brings an impressive 25 years of experience in atmospheric science, wildfire modeling, and computational fluid dynamics. With his extensive background in computational simulations of wildfire behavior, atmospheric phenomena, and complex fluid flow systems, we are thrilled to have Phil on board to strengthen our wildfire modeling capabilities. His experience includes wildfire modeling at Verisk, academic positions at Florida State University and Coventry University in the UK, and a role as a government research scientist at Los Alamos National Laboratory. We are confident that Phil will enhance our science team and contribute to the development of cutting-edge climate risk financial modeling (CRFM). #newhire #CRFM #climaterisk #wildfiremodeling #climatechange

This partnership will transform how homebuyers assess real estate! It's also a big milestone in our mission to connect climate change to financial risk. From homebuyers and government agencies to financial institutions, our goal is to make this essential climate risk information accessible to all.

We are excited to share news that will transform how homebuyers assess real estate: Zillow has now integrated the First Street property specific climate risk data, on all for-sale listings across the U.S. Home shoppers can now access vital insights into five key climate risks—flood, wildfire, wind, heat, and air quality—directly on listing pages. Each listing is equipped with our risk scores, interactive maps, and insurance requirements, helping buyers make informed decisions about home purchases. This partnership marks a significant milestone in our mission to connect climate change to financial risk. From homebuyers and government agencies to financial institutions, our goal is to make this essential climate risk information accessible to all. Learn more: https://lnkd.in/gNgaA-x6 #CRFM #climateweek

🎉 Welcome to the team, Lucas Edberg! Lucas is joining us as the Director of Enterprise Solutions. He brings nearly 12 years of experience from U.S. Bank, where he designed and led the build-out of their Climate Scenario Analysis (CSA) program. Prior to that, Lucas had in various roles within the bank's credit risk model validation, finance, and economic scenarios groups. We're excited for Lucas to leverage his expertise at First Street, enhancing our climate risk financial modeling (CRFM) solutions! #newhire #CRFM #climaterisk #climatechange

We're thrilled to welcome Amanda Johnson Schmid, CMB, SCR to our team as an Account Executive! Amanda joins us with over 25 years of experience in B2B housing finance and risk management including time at Citigroup, Wells Fargo, Flagstar Bank & Marsh McLennan. Her expertise in residential lending strategy, risk management, capital markets, and engagement with financial institutions will be invaluable. Amanda's insights will help banks leverage climate risk financial modeling (CRFM) as part of their credit risk and portfolio management strategies. #newhire #CRFM #climaterisk #climatechange #banking

NEW National Risk Assessment: Portfolio Pressures The "11th National Risk Assessment: Portfolio Pressures" report dives into the increasing frequency and intensity of climate-related disasters in the U.S., underscoring the urgent need for advanced risk assessment tools. Traditional models fall short in capturing the interconnected nature of climate risks. That's why we developed the First Street Correlated Risk Model (FS-CRM), a cutting-edge tool that integrates multiple climate hazards to provide a more nuanced understanding of potential losses. To demonstrate the power of climate risk financial modeling, First Street analyzed banks by using branches as proxies to evaluate "material financial risk". The analysis identified 57 banks with a collective $627 billion in real estate loans, representing 10.9% of all bank loans nationwide, that have climate-related risk that is reasonably likely to have a material impact on their financial condition and subject to disclosure rules. Download the report for in-depth insights into the FS-CRM model and explore how climate change impacts the US banking system. Link to report: https://lnkd.in/gTBFQWss #CRFM #climaterisk #banks #climatedisclosure

Our Head of Climate Implications, Jeremy R. Porter, Ph.D., made an appearance on The Weather Channel this week to discuss how climate change is impacting home ownership. He emphasized the importance of understanding your climate risk to take essential steps in safeguarding your home. Visit First Street (www.firststreet.org) to search any address in the U.S. and gain insights into the risks associated with the property. #climatechange #climaterisk #CRFM