Leeds Building Society has agreed a new climate change risk contract with Hometrack to monitor the impact of global warming across its portfolio.

The UK’s fifth biggest mutual says the deal builds on an existing relationship with the data body, and also uses analysis from environment research groups Ambiental and Terrafirma.

It adds the move will give the firm an “increased understanding of the impact of climate change on its mortgage portfolio, and will help the building society to meet ongoing regulation from the Bank of England”.

The mutual had assets of £20.6bn at the end of last year. Hometrack provides over 85 million automated property valuations a year, covering 17 of the UK’s top 20 lenders.

The group adds: “Hometrack’s risk insights will also assess how climate change risk is projected to evolve across Leeds Building Society’s portfolio over time, ultimately helping the mutual to gain greater insight on the potential impacts from climate change risks.”

It also says that the data will feed into new mortgage lending policies “enabling the society to incorporate key climate change metrics into its future mortgage origination strategy”.

Leeds Building Society risk director Andrew Mellor says: “We are pleased to build on our existing relationship with Hometrack, which has enabled the society to gain invaluable insights into the emerging impacts that climate change could have on our business and has helped to shape our climate risk management framework and response plans.”

Hometrack vice president commercial George Robbins adds: “Leeds Building Society recognises the need to gain a greater understanding of the potential impacts of climate change risk as soon as possible, and we will support the society as it navigates increased regulation in this field.

“We look forward to building on our existing relationship and to delivering streamlined, in-depth analysis that enables the society to understand, track and minimise climate change risk exposure — both today and for the future.”