Climate Risk and Resilience

Turning avoided losses and adaptive asset management into cash flow.

Climate extremes are recalibrating the fundamental cash flows underpinning adaptation finance.
At the pre-investment stage, PCRAM — an integrated system of models combining climate science, physical engineering, and financial valuation — connects physical climate risk to cash flows. It identifies the risk reduction measures those extremes call for.
Sandmont works with asset owner-operators, founders, sponsors, and financial intermediaries to identify, quantify and qualify resilience monetization at different stages of the investment cycle.

Sustainable fixed income has grown into an $8 trillion-plus market, but the "greenium" — the pricing edge green and sustainability bonds carry over conventional debt — remains thin and keeps narrowing. Some observers expect that "higher cost" of holding climate bonds to eventually reverse, positioning the asset class for stronger relative performance over time, both intrinsically and extrinsically.

Resilience Investment Cycle

Each state of the asset's life produces a distinct cash flow driver — PCRAM identifies the first, the asset's own performance produces the second, and disclosure at sale captures the third.

Get In Touch

Tell us about your mandate — we'll follow up to schedule a consultation.