New platform designed to help lenders assess climate risk and support net zero
Paragon Bank has become the first lender to implement Cotality UK’s newly launched Net Zero Hub, a platform designed to help mortgage providers track and manage climate-related risks and carbon emissions across their loan books.
The move comes as the UK works toward its legally binding target of reaching net zero emissions by 2050. The goal is to balance the country’s total greenhouse gas output with the amount removed from the atmosphere, aiming to curb global warming and its impacts on climate change. As part of this national effort, financial institutions are increasingly expected to support the transition to a low-carbon economy.
Cotality’s Net Zero Hub uses a detailed dataset of UK property energy credentials to assess both physical and transition risks associated with climate change. It will allow Paragon to analyse the energy efficiency of properties in its mortgage portfolio, report on financed emissions, and develop strategies for customer engagement in line with its climate objectives.
“This partnership marks a significant milestone for Cotality UK,” said Mark Blackwell (pictured left), chief operating officer at Cotality. “We are proud to support Paragon Bank in its continued commitment to innovation, compliance, and digital excellence.
“Our Net Zero Hub addresses the complex demands lenders face in decarbonising mortgage books; in particular the buy-to-let market, and we look forward to delivering real value and measurable results.”
Louisa Sedgwick (pictured right), managing director of mortgages at Paragon Bank, said the platform will enhance the bank’s approach to sustainable lending.
“We are excited to partner with Cotality UK and be the first to adopt their innovative Net Zero Hub platform,” she said. “This collaboration underscores our commitment to sustainability and innovation, equipping us with the tools to better understand and address climate risk while enhancing the energy efficiency of our mortgage portfolio. Together, we are setting a new standard for climate-conscious lending in the buy-to-let market.”
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