Atom bank has announced a new partnership with climate tech firm, Kamma, to tackle climate change risks.

The bank will have access to Kamma’s full climate suite and will be able to view both the physical and transition risks of its mortgage book.

Kamma will further provide analytics on Atom’s financed emissions, improved PCAF scoring, and climate credentials on pools of assets for the purposes of securitisation.

Atom bank has pledged to become a “carbon positive” bank by 2035. The bank’s digital, cloud-native business model is more efficient and less impactful on the environment than traditional banking models, while its chosen premises and policy for selection of suppliers aim to further help to reduce emissions.

The bank suggested its next step is to address financed emissions, which will include using advanced analytics to help the bank and its customers reduce their carbon footprint.

Phase one of the partnership with Kamma will involve a deep review of the mortgage portfolio and strategic support from the Kamma team, before phase two will see the development of new propositions, products and customer journeys that deliver this new strategy.

Director of ESG at Atom bank, Edward Twiddy, said that banks have a “crucial role” to play in solving the climate challenge.

“Too much lending has been done by banks that has not taken account of the impact we are having on the climate, and it is important that this is changing,” Twiddy commented.

“As a digital bank, we will use the best technology available to ensure we accurately measure emissions, understand risk and then help our customers to reduce their bills, increase the value of their property and be ready for a zero-carbon future.

“The damage we have already done is clear, and we do not see any reason to delay action when the evidence and imperative for change is in front of us. I’m delighted that we are partnering with Kamma to benchmark our emissions, manage our risks and most importantly, to provide practical ways for Atom and our customers to face into the future.”

Kamma has developed the UK’s most advanced view on the climate profile of UK property, and includes substantial modelling and high-grade address matching to close data gaps, data integration and calibration to improve accuracy, as well as unique analytics that chart a course to net-zero for UK property.

CEO of Kamma, Orla Shields, added: “Our strategy is to partner with market leaders in order to support the development of bleeding edge propositions and light a pathway to net-zero for other organisations. We’re hugely excited about the opportunity to partner with Atom Bank on their climate journey.”

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