Principality Building Society has signed up to a climate change risk contract with Hometrack.

Furthering the existing relationship, Hometrack’s climate change risk analysis in partnership with Ambiental and Terrafirma will provide Principality with increased understanding of the impact of climate change on its mortgage portfolio.

Hometrack will also assist the building society as it strives to meet ongoing regulation from the Bank of England.

Hometrack’s Risk Insights will also assess how such risk is projected to evolve across Principality Building Society’s portfolio over time.

Vicky Wales, chief customer officer at Principality Building Society, said: ‘’Climate change is an ever important issue in our society and it is part and parcel of our responsibility as a member-owned organisation and responsible lender to ensure we are becoming a more sustainable organisation, by supporting our natural environment as well as managing climate change risks across our portfolio.

“We’re pleased to be building on our strong partnership with Hometrack, who’s expertise and support will allow us to gain an in depth analysis into the evolving risks that climate change poses for us and our members.”

George Robbins, VP commercial at Hometrack, added: “Climate change is at the forefront of the agenda for lenders, and Principality Building Society is keen to address this early on.

“The possible impact on lender portfolios is complex and diverse, and requires expert knowledge to quantify and manage; regulation is becoming more complex, and is driving continued investment in the expansion of our suite of climate change risk solutions.

“Our relationship with Principality is an important one, and we welcome the opportunity to expand this and support them through this changing landscape, as we track and minimise risk exposure both today and for the long term.”

This is the most recent in a series of sign-ups, including Leeds Building Society and Yorkshire Building Society.