A climate risk assessment identifies how climate-related hazards (flooding, extreme heat, drought, sea-level rise) could affect a specific asset, portfolio, or business operation. It covers both physical risks (direct hazard exposure) and transitional risks (regulatory or market shifts as economies decarbonise). Transitional risk assessment draws on country-level policy and regulatory inputs, while physical risk analysis is tied to the precise location and spatial footprint of each asset. Frontierra's assessments combine both, providing a more complete and accurate picture than tools that rely on sector- or regional-level averages alone.

Most tools assess risk at a sector, country, or regional level. A smaller niche incorporates site-level co-ordinates. Very few take into account the exact spatial footprint of each site. Frontierra uses satellite data and geospatial analysis tied to the precise location and extent of each asset, reflecting actual location characteristics rather than broad averages. Climate and nature risks are also integrated within a single platform, giving a more complete picture of environmental exposure.

Nature risk refers to the threats a business faces when the natural systems it depends on, such as clean water, pollination, healthy soil, or stable land cover, are degraded or lost. Nature opportunity refers to the potential for businesses to improve their performance, resilience, and reputation by adopting practices that restore or protect those systems.

An estimated half of global GDP is moderately or highly dependent on nature, yet nature-related exposure is rarely visible in traditional financial analysis. Frontierra maps both risk and opportunity at the asset level, using satellite-derived metrics and proprietary indicators to give businesses a clear, evidence-based starting point for understanding their relationship with nature and meeting emerging disclosure requirements such as the TNFD.

The EUDR requires companies placing specific commodities on the EU market to verify they were not produced on land deforested after 31 December 2020. While the current regulation applies primarily to commodity operators and traders, financial institutions are explicitly referenced within the legislation — Article 34 acknowledges the role of financing in driving deforestation and confirms that an expansion of scope to include financial institutions will be reviewed in a future phase. FIs with exposure to deforestation-linked supply chains should therefore treat EUDR compliance as an emerging obligation, not a peripheral concern. Our assessments provide the spatial evidence and documentation needed to support compliance today, and to prepare for the regulatory expectations that are likely to follow.

The Taskforce on Nature-related Financial Disclosures (TNFD) is a global framework for identifying and disclosing nature dependencies and impacts. As a TNFD Forum and Data Catalyst member, Frontierra has delivered TNFD pilot projects for leading financial institutions and built its Climate and Nature Intelligence Platform to support the TNFD LEAP approach (Locate, Evaluate, Assess, and Prepare).

Frontierra's services support ISSB S1 and S2, TCFD, EU Taxonomy (including CRVA requirements), SFDR, TNFD, and EUDR. Regulatory alignment is a key output — but the primary value is helping clients understand and manage the underlying risks, not just report on them. Get in touch to discuss your specific requirements.