CIE launches climate risk reporting compliance note – Mortgage Finance Gazette
The CIE compliance note provides a definition of the data, minimum service standards and expectations for how CIE members will maintain and refine the data in accordance with the evolving market and stakeholder requirements.
It clarifies the minimum data components for property site identification and the mandatory and optional requirements for physical risks, including flooding, natural subsidence and coastal erosion.
In addition, the note explains how climate modelling should be used and justified and how they feed into the analysis and assessment of risk.
CIE founding member and Groundsure vice president of operations Stuart Telfer says climate data is “an important development in the evolution of environmental searches”.
Telfer explains: “It is no longer acceptable to homebuyers and business owners that data standards should focus on historic or current data but should be applied to how future projections of risk driven by climate change could manifest themselves.”
“This is, of course, a rapidly evolving area and CIE will be continually reviewing industry and key stakeholder guidance in response, especially the anticipated Law Society guidance and new lender reporting requirements.”
“Customer education and support is at the heart of this, to give conveyancers and commercial property lawyers the confidence to advise their clients, as well as clarity of potential solutions to risks.”
“The compliance note also makes clear that the reports shouldn’t just be a data dump of confusing scientific projections.”
“It needs to have clear, actionable outcomes for the client and that the conveyancer can have confidence that any risks are clearly flagged and that next steps can be discussed with the client on any impacts to lending, insurance cover or mitigations.”
Commenting on the note, Landmark Legal managing director Chris Loaring adds: “Climate Change impacts have never been more evident in our society and the impact on property assets is becoming ever clearer.”
“This guidance provides clear assurance to legal professionals that CIE standards are leading the way and innovating in the same way as CIE members. This ensures we are able to advise and plan ahead to meet the climate challenge.”