Meeting Climate Risk Expectations: How Map Impact Data Supports Compliance with CP10/25 and SS3/19

Introduction

On 30 April 2025, the Bank of England published Consultation Paper CP10/25 and a draft enhanced Supervisory Statement (SS3/19), significantly raising regulatory expectations for how financial firms should manage, measure, and mitigate climate-related risks. These documents signal a decisive shift: climate risk is now firmly embedded as a material financial risk requiring serious governance, rigorous data, and structured integration into firm-wide risk management and capital adequacy frameworks.

As regulated lenders and insurers navigate this complex transformation, Map Impact provides property-specific intelligence at national scale which complies with these evolving standards. Flagship solutions – HeatView, DroughtView, WildfireView, and BiodiversityView – are designed to help firms close data gaps, conduct robust scenario analysis, and refine Pillar 2 capital adequacy planning. This article explores how.

The Regulatory Context

For both IRB-accredited firms and those using the Standardised Approach (such as many building societies and domestic insurers), the PRA has made clear that climate risk must be assessed through a forward-looking, proportionate lens. Importantly, this includes applying granular climate data to enhance internal risk insight and inform capital planning.

Where Map Impact Adds Value

Map Impact specialises in high-resolution physical climate and landcover datasets that align with the types of use cases now demanded by the PRA. These datasets are rooted in UKCP18-aligned scenarios and risk pathways. They include:

• HeatView: Assesses urban and rural heat stress risk based on land surface temperature trends, urban morphology, and future temperature pathways.
• DroughtView: Maps locational drought risk using vegetation health indices, soil moisture trends, and exposure of water-dependent land uses.
• WildfireView: Identifies wildfire-prone areas through a fusion of dryness indices, vegetation type, topography, and historic burn data.
• BiodiversityView: A unique baseline of habitat type and condition, offering insights into land resilience and natural capital that moderates physical climate risk

These solutions detail a property’s current and future exposure through to the end of the century.

Applications Across the Regulatory Framework

• Risk Identification and Materiality Assessments
  Map Impact’s UPRN and property-specific climate risk intelligence enables institutions to identify concentrations of physical risk across mortgage and insurance portfolios. For example, a building society can map wildfire or heat stress exposure across its residential lending book to determine individual property exposure.
• Scenario Analysis and Stress Testing
  PRA expectations now call for granular and tailored scenario testing. Map Impact datasets can be applied to forward-looking climate pathways (e.g. RCP 4.5 or 8.5 through to 50 years hence) to estimate future risk exposure by location and asset class. Firms can use this to construct reverse stress tests, identify systemic vulnerabilities, and build capital resilience scenarios.
• Pillar 2 (ICAAP/ORSA) Capital Planning
  Firms must assess whether additional capital is needed under Pillar 2. By matching Map Impact’s property-specific risk data with secured lending or underwriting portfolios, firms can better understand and evidence where capital buffers may be prudent, and optimise their capital requirements.
• Governance and Board-Level Reporting
  Map Impact’s outputs are designed to support board reporting obligations under the enhanced SS3/19. They deliver clear, decision-relevant outputs to help Senior Management Functions (SMFs) understand and oversee climate risk drivers.
• Closing Data Gaps and Enhancing Quality
  One of the PRA’s recurring themes is the need to address climate data gaps and biases. Map Impact closes this gap with consistent, national scale property-specific datasets that are evidence-based, auditable, and continuously updated using satellite-derived intelligence.

Special Relevance for Standardised Firms

Small to mid-sized firms using the Standardised Approach to their calculations of capital adequacy often lack the dedicated resource to develop proprietary models, and in the case of addressing the impending Supervisory Statement, ingest property-specific climate risk data. This will result in a sub-optimal outcome for the calculation of capital requirements. Map Impact’s solution is tailored for these institutions: we integrate the property-specific data and assessment framework that enables the firm to meet regulatory expectations and negate the requirement for an additional capital adjustment from a portfolio-level approach.

This is particularly useful for:

• Building societies and credit unions
• Challenger banks with mortgage portfolios
• Regional insurers underwriting property risks

Looking Ahead: From Regulatory Readiness to Strategic Advantage

Firms that embrace climate risk integration early and comprehensively will not only satisfy regulatory obligations, but also gain strategic benefits: better risk-adjusted pricing, enhanced resilience, and improved stakeholder confidence.

Map Impact is ready to partner with financial institutions at all stages of this journey. Whether supporting climate stress testing, helping refine ICAAP, or building custom exposure dashboards for executive oversight, the goal is to make climate risk actionable and aligned with the PRA’s stringent expectations.

Conclusion

CP10/25 and the upgraded SS3/19 have raised the bar. The challenge, and the opportunity, now falls on firms to show that they understand their climate risk exposures and have credible, data-driven plans to manage them. With Map Impact’s property-specific datasets, financial institutions can not only meet these enhanced expectations but lead the way in building a more resilient financial system.

To learn more about how Map Impact can support a firm’s regulatory, risk, and reporting needs, contact info@mapimpact.io