Citi, financial and industry data provider S&P Global Market Intelligence and management consulting firm Oliver Wyman announced today that Citi has selected the S&P Global/Oliver Wyman’s Climate Credit Analytics solution to assess and report on the credit risk impact of the transition to a low carbon economy.
According to Citi, a key focus of the new agreement will be to support the bank in performing climate-related stress tests. Several regulators around the world, including the ECB, Bank of England and Monetary Authority of Singapore have recently launched climate stress tests, aiming to assess the exposure of the financial system’s largest banks to physical and transition climate risks.
Kunal Motiani, Global Lead of the Climate Risk program at Citi, said:
“Climate change is one of the greatest challenges of our time and playing Citi’s part in tackling it will require tremendous collaboration. Robust climate data and analytics is critical to our Climate Risk team’s mission of measuring and managing Citi’s climate risk, and to meeting the growing climate risk management expectations of global banking regulators.”
According to Richard Webley, Head of Citi Global Data Insights, the solution will also help the bank meet the growing need for accurate climate data for corporate disclosure.
“As part of Citi’s effort to build out a firmwide climate data utility function, our work with the teams at S&P Global Market Intelligence and Oliver Wyman aligns to our needs to build a robust infrastructure to support our Risk and Institutional needs.”
S&P Global MI and Oliver Wyman launched Climate Credit Analytics in June 2021, aiming to enable financial institutions and corporations to assess how the climate transition will impact the creditworthiness of their counterparties and investments. The solution includes coverage of more than 1.6 million companies across all non-financial sectors of the global economy, along with specific models for emissions-intensive sectors such as airlines, automotive manufacturing, oil & gas and power generation.
Whit McGraw, Global Head of Credit & Risk Solutions at S&P Global Market Intelligence, said:
“Citi is an inspiring leader in their commitment to addressing climate change, as demonstrated in their latest TCFD Report and initial net zero plan, and we look forward to working alongside them and Oliver Wyman to help Citi address climate-related risk implications and achieve their net zero goals.”
Ilya Khaykin, Partner and Head of Climate Risk for the Americas at Oliver Wyman, added:
“We’re thrilled to deepen our work together with Citi on this important topic; climate change is the defining issue of our time and, together with S&P Global, we are committed to helping Citi and the industry manage its implications.”