Kamma’s Post

Huge report from Kamma out today: we've analysed the climate transition plans (or lack thereof) of over 80 UK mortgage lenders! See who's top of the tree and how your organisation can up their game. Sign up to our webinar below and get the report entirely for free #climate #transition #propertyzero

It's a basic human instinct to know where we rank relative to our peers, we can't help ourselves. Curiosity and a healthy urge to better ourselves is a very good thing, we learn from others, we aspire to be at least as good as them, if not better. This is an even more positive thing when it comes to aspirations around the role we and our organisations each play in the fight against climate change. 🌍 That's why we we've analysed the climate transition plans of over 80 UK mortgage lenders! The more we share, the more we aspire to do more, the more we aspire to be that bit better....the more we look at the fight against climate change as a concerted effort, then the higher our chances of winning....and we really could do with upping those odds right now. See who's top of the tree and how your organisation can up their game. Sign up to our webinar below and get the report entirely for free https://lnkd.in/dQPyQ2xK I urge leadership teams across all our lenders to take a look at where you stand and where you can learn from your peers to see what that bit more is that your organisation could be doing. 💚 #climate #transition #propertyzero #climatechange #esg #netzero #mortgagelenders

Interesting to know that there is a direct correlation between US Mortgage approvals rates & Property value and the Temperature! For every 1 degree Celsius that temperatures rise above average, approvals fell by nearly 1 percent and their value by more than 6.5 percent! Nearly half of all homes in the United States are at risk of 'severe or extreme' damage from events like flooding, high winds and wildfire, Realtor.com estimates. Property is the world’s greatest store of wealth, with a total value of $380 trillion. This is 4x global GDP! I like the 'incentivize energy efficient building' part.

Yesterday, Kamma hosted a webinar discussing the key findings from analysis of over 80 mortgage lender climate transition plans. 💻 We were joined by Amy Thomson, Head of Climate Risk and Disclosure at Nationwide Building Society, the top lender in our ranking, who shared what a best practice currently looks like. Here's a snapshot of what was discussed 🔍 1. Why consistency in reporting on climate is desperately needed 2. How the lack of data is holding the industry back, and what to do about it 3. Which macro dependencies need to be identified and quantified 4. Why IFRS-S2 could be a gamechanger for transition planning 5. A view on scaling the impact of the top lenders 6. What best practice looks like: Nationwide case study Get the full write up and webinar recording below ⬇ #ClimateTransition #NetZero #IFRS https://lnkd.in/epYURzQn

Climate data quality - the key to credible transition plans📉 For mortgage lenders, data quality is critical when it comes to understanding carbon emissions and setting realistic decarbonisation goals. 🔢 Our analysis found that 35% of homes in the average mortgage portfolio lack valid EPC data, leading to significant inaccuracies in calculating climate impact. 🔥 What’s more, only 27% of lenders even disclose how much of their portfolio is missing EPC data. Improving data transparency is vital for robust climate transition plans. Discover more in our new article below. ⬇ 📰 While you're there, why not sign up to our industry webinar discussing the leading lenders on the climate transition held tomorrow, 24th September? We'll even send you the full report as part of signing up. https://lnkd.in/esbKhBqP #ClimateData #ClimateTransition #NetZero #MortgageLenders

A massive thank you to The Mortgage Climate Action Group, Karina Gerdes and Rachael Hunnisett from The Green Finance Institute for their enlightening webinar "The climate is changing, should you?". 🙏🌿 Really insightful discussion on the climate's impact on financial services, delving into the crucial intersection of climate change and mortgage advice, exploring its implications for both intermediaries and lenders. 🏡 Empowering and informative - left us with valuable insights and actionable steps towards a sustainable future. ✨ #prismmortgages #ClimateAction #MortgageAdvice #SustainabilityEducation ******************** Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.   A fee may be charged for mortgage advice. The exact amount will depend on your circumstance.

Climate risks are reshaping the financial landscape, and for mortgage lenders in the UK, a well-structured climate transition plan is no longer optional – it’s essential But what exactly is a transition plan, and why is it critical for lenders today? Read our latest guide on climate transition planning below ⬇ #climatetransition #netzero #mortgagelenders https://lnkd.in/eA4FUd38

In the face of extreme weather events like floods, a recent study sheds light on an important aspect of financial resilience. The intensity of such natural disasters directly impacts people's ability to meet mortgage obligations. Heavy rainfall, particularly in flood-prone areas, poses an added risk. As we witness the growing impact of climate change, it becomes imperative for financial institutions and borrowers alike to factor in these risks when calculating mortgages. The ability to anticipate and adapt to the evolving landscape of climate-related challenges is crucial. This paradigm shift prompts us to reevaluate risk assessment models and integrate climate resilience into mortgage calculations. By doing so, we not only safeguard the interests of borrowers but also strengthen the resilience of our financial systems against the escalating impacts of climate change. #climatechange #climateresilience #pluvia.ai https://lnkd.in/dS97JgEM

Yesterday, National Association of Home Builders Chairman Carl Harris testified at a meeting of the House Financial Services subcommittee about #HousingAffordability. The NAHB press release about this includes some very carefully cherry picked numbers that exaggerate the cost impact of improved energy efficiency by almost 3x. I'm all for decreasing the cost of housing, but my opinion is that it should come via decreased regulations on density and impact fees, and a cohesive plan and effort from the NAHB to improve industry productivity, rather than by increasing the long term total cost of ownership in pursuit of a lower first cost today. NAHB press release: "According to the Home Innovation Research Labs, compliance with the 2021 IECC can add $22,572 to the price of a new home, but in practice, home builders have estimated increased costs of up to $31,000. Furthermore, it can take as long as 90 years for home owners to see a payback on this investment." Text from the actual report (https://lnkd.in/gkKGUucM): "The national average incremental construction cost ranges from $6,548 to $9,301 depending on the additional efficiency package option selected for compliance. Depending on climate zone, the weighted average incremental construction cost may range up to $11,900." and "The national average simple payback for complying with the 2021 IECC ranges from 32 years to 67 years." Yes, there is a 90 year package payback number, but it is specific to Phoenix with a particular increased ventilation option. I’m a little surprised that NAHB didn’t imply the overall payback period was 177 years, which is what is modeled for additional ceiling insulation in Phoenix… In any case, my point and concern is that hyperbole on issues like this is counterproductive and the homebuilding industry should stick with facts and accurate figures. Inaccurate information on items like the increased cost of code compliance or the monumental cost savings of 3D printed homes just makes things more confusing and dilutes the messages that actually need to make it through the bluster. https://lnkd.in/gxh8NWPk

Let's face it, climate change poses a severe threat to housing, and in some cases, it may render certain properties or communities uninhabitable, forcing residents to relocate. Low-lying areas are at risk of being submerged due to rising sea levels. In such scenarios, no amount of retrofitting or hardening of existing structures can prevent the eventual loss of housing. The structural integrity and utility of these properties will essentially be rendered obsolete.