Challenge
Institutional investors and asset managers are under increasing pressure to assess nature-related risks in their portfolios, yet traditional risk models often overlook environmental dependencies, biodiversity impacts, and ecosystem service disruptions.
Key obstacles include the absence of standardised nature risk metrics across asset classes, difficulty in pinpointing high-risk assets based on ecosystem integrity, and the complexity of complying with evolving frameworks like the TNFD and EU Taxonomy.
Furthermore, there is a lack of robust analytical tools to support nature-positive investment decisions, making it challenging to identify and manage environmental risks effectively.
Solution
To address these gaps, the client sought a web-based platform that brings together artificial intelligence, geospatial intelligence, and ESG analytics. The resulting solution leverages Google Cloud AI infrastructure, including Vertex AI for machine learning models, BigQuery ML for advanced data analysis, and Cloud Run for scalable hosting.
Key features include AI-driven portfolio risk assessment, interactive dashboards for real-time geospatial risk visualisation, and deep-dive asset analysis using natural language processing to extract ESG risks from disclosures and news. Automated regulatory reporting, powered by generative AI, ensures alignment with TNFD, SFDR, and EU Taxonomy, while compliance gaps are flagged through AI-based checks.
The tech stack also incorporates React.js, Node.js, TypeScript, and secure cloud services for performance and scalability.
Achievements
The platform has significantly improved risk visibility by surfacing hidden environmental risks that conventional models often miss. Investors now benefit from predictive analytics, allowing them to anticipate and respond to future nature-related risks, and automated compliance reporting that reduces manual effort.
The use of AI accelerates due diligence by processing vast datasets rapidly, while portfolio optimisation tools recommend shifts towards lower-risk, nature-positive assets. The solution empowers institutional investors to make informed, sustainable decisions with greater confidence and efficiency.
