Atom Bank taps climate tech firm Kamma to evaluate mortgage book emissions
UK challenger bank Atom is attempting to address the environmental emissions posed by its mortgage book through a new partnership with climate tech company Kamma.
Through the partnership, the Durham-based bank intends to perform a “deep review” of its mortgage portfolio by leveraging Kamma’s tech suite, which includes analytics to measure the emissions incurred by lending and investing procedures and the ability to certify the climate credentials of securitised assets.
While vowing to become carbon positive by 2035, Atom says the partnership is in anticipation of “substantial new regulations and risks for mortgage lenders”, alongside those already established by the Bank of England in July that require banks to mitigate and report the climate risks present in their policy functions and operations.
The bank also describes “greening” the UK’s property stock as “critical to driving down costs for households and reducing harmful emissions”, and emphasises how access to its partner’s climate suite will “provide clear guidance supporting risk management, regulatory reporting and green asset qualification” as it pursues this cause.
Once its initial review has been completed, the bank will embark on phase two of the partnership, which is expected to include the development of new propositions, products and customer journeys.
The bank’s co-founder and director of environmental, social and governance (ESG), Edward Twiddy, says that banks have historically disregarded the impact their lending activity has on the climate, but stresses that “this is changing”.
“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,” he adds.