Skenarios support
Lenders tool user guide
- Federica Marongiu
- Akilles Rechardt
1. Introduction
2. Dashboard
At the top of the screen, the user has the option to access a dashboard summary of property portfolio, view a list of all the properties and information related to them, or download a PCAF report.
Figure 1 introduces the four parts of the ‘Dashboard’: 1) Portfolio summary, 2) Building stock summary, 3) Climate risk and 4) Transition risk. The four parts are shown in Figure 2 and further explained in the sub-sections below.
3. Portfolio and Building stock summary
The portfolio summary and building stock summary present information about the whole building portfolio. The figures on the left present the number of buildings, their total floor area, value and outstanding loan amount for the full portfolio. The user can view a breakdown of the building types, build years, energy performance certificate ratings and CO2 emissions of the building portfolio by toggling between the different views on the right.
4. Climate risks
This climate risk summary dashboard presents information about the physical climate risks affecting the properties in the portfolio.
The coloured bar chart visualises the proportion of properties belonging to each risk class for each of the five included climate risks. Additionally, for flood risks, modelled future flood risk for 2100 with the RCP8.5a emission scenario is also shown. The risk levels included are "No Risk", "Low Risk", "Medium Risk", and "High Risk". These are classified according to European Central Bank methodologyb or according to the UK-specific data source's own classification (subsidence; BGSc). However, note that the risk classes are not directly comparable between different physical risks - for example, low wildfire risk and low surface flood risk do not have equal expected damage. On the other hand, Expected Annual Loss (EAL), currently only available for flood risks, is a mutually comparable metric.
The climate risk table contains portfolio-level EAL values for different climate risks (currently only flood risks) for both current risk and future risk (RCP8.5, 2100). EAL indicates the expected damage to buildings in GBP per year. This is calculated with the probability or frequency and intensity of acute risk events. The monetary value comes from a damage function that translates climate event intensities into damages corresponding to a fraction of a building's value.
a van Vuuren et al., (2011, August 5). The Representative Concentration Pathways: An Overview. Climatic Change. Link
b EBC: European Central Bank. (2024). Climate Change-Related Statistical Indicators. Link
c BGS: British Geological Survey. GeoSure.
5. Transition risk
The transition risk table shows the current calculated transition risk for the entire portfolio in GBP. Transition risk refers to existing or possible degradation to a property's value due to green regulation and/or market sentiment. We have quantified this using two metrics: "Cost to renovate to EPC C" and "Brown Discount".
Cost to renovate to EPC C refers to the minimum cost to renovate a property of EPC D or below to match an EPC class of C. The minimum cost retrofit measures for each property are selected with an optimiser algorithm. Cost to renovate to EPC C was chosen as a metric as EPC C has often been suggested as a minimum requirement for many of the potentially upcoming regulations regarding residential properties. In the transition risk table these costs are summed across all properties to display the total portfolio-level risk.
Brown discount (also known as green premium) refers to the calculated decrease in a property's market value due to low energy efficiency. This is estimated with a sophisticated valuation model, which removes the influence of other variables such as building condition or age. These values are summed across the entire portfolio to calculate the total degradation from low EPC ratings.
6. Properties
This view contains a list of all the buildings within the portfolio. Please note that the list may continue across several pages. You can select any property by clicking on the address in order to see property-specific details.
6.1 Property-specific view
Property-specific information is available for each property within the building portfolio. This can be accessed by selecting an individual building on the 'Properties' list. The user can then view the full address, summary information regarding the property's energy performance certificate, floor area, property value and brown discount (see 5. Transition risk for more details). A map showing the location of the property is also shown.
6.1.1 Transition risk
The property-specific view transition risk consists of two parts: "Brown Discount" and "Retrofit to EPC C".
Brown discount is shown on the building detail band at the top of the page. It is always indicated as a percentage discount to the property's valuation and is missing if a property has an EPC rating of C or above (see 5. Transition risk for more details).
Retrofit to EPC C is a shown in a box under the property map view. This lists the retrofit measures recommended to increase the energy performance rating of the property to EPC C and shows the optimised minimum cost renovations to reach an EPC rating of C for the selected property (see 5. Transition risk for more details).
Note: property level transition risk information exists only for properties with an EPC rating of D or below.
6.1.2 Renovations
Under the Renovations list, the user can select/deselect retrofit measures for the property. The table shows various measures, including insulation of different standards, and the resulting savings in energy consumption, CO2 emissions and annual energy costs, as well as an approximate capital cost of the measure. Once all the relevant measures have been selected, the user can view the total savings and costs for the property at the bottom of the table.
*This list contains several possible renovations that can be done in this building. It is not intended that all the measures within the table are selected. The user is able to choose e.g. what is the desired insulation level of the walls and pick only that measure from the list.
**These measures (unlike the ones considered for the transition risk) are intended for the whole building and not for the unit. This covers cases like flats, when renovations of the building fabric are applied to all the structures and not to a single flat. Costs are also estimated for the whole building.
6.1.3 Mortgage information
Within this section, information about the existing mortgage is shown. The measures selected within the Renovations list are then added as an additional 'Green loan'. The user can specify an interest rate and loan term for the Green loan, and an interest rate and remaining term for the mortgage. This allows total monthly payments to be viewed along with potential energy cost savings related to the retrofit measures, and the net costs to the customer.
6.1.4 Climate risk
The property climate risk table presents information about the physical climate risks affecting the property.
The climate risk table contains the property's physical climate risk classes and Estimated Annual Loss (EAL) values for five main climate risks (EAL currently only for flood risks). Both current risk and future risk (RCP8.5, 2100) values are provided where possible.
See 4. Climate Risks for more details on methodology.
6.1.6 Baseline energy performance
These figures allow the user to view energy use related emissions, costs and consumption (kWh/m2) across the year. The figures are based on an estimate of the 'as-is' situation, i.e. before any retrofit measures take place.
Related content
SkenarioLabs