Financial and industry data, research and news provider S&P Global Market Intelligence and management consulting firm Oliver Wyman today announced the addition of climate-related physical risk to theClimate Credit Analytics solution, aimed at enabling clients to understand and manage companies’ and portfolios’ physical and financial exposure to climate change.
S&P Global and Oliver Wyman launched Climate Credit Analytics in June 2021 as a solution to help financial institutions and corporations assess how a changing climate and the transition to a low-carbon economy will impact the creditworthiness of their counterparties and investments. The solution combines S&P Global Market Intelligence’s advanced Credit Analytics risk models and industry-specific datasets with Oliver Wyman’s climate scenario and stress testing capabilities to translate climate scenarios into scenario-adjusted financials and scores at the company level.
With the new enhancement, Climate Credit Analytics will now include S&P Global Sustainable1 data providing information on the physical risk exposure and related financial impact for over 20,000 companies, mapped against a range of seven climate change-related hazards, across a series of four CMIP6 climate change scenarios..
According to S&P Global MI’s Head of Credit and Risk Solutions Whit McGraw, the new capabilities come amidst a growing frequency of climate-related events, leading companies to “seek to evaluate the impact of climate on their businesses, counterparties and investments.”
“Our robust model suite and tailored approach to sectors, enhanced by the S&P Global acquisition of The Climate Service and merger with IHS Markit, provides greater granularity for regulatory climate stress testing and scenario analysis, enabling users to report to stakeholders with confidence.”
The new capabilities launch the latest in a series of features added to Climate Credit Analytics since launch, including new climate scenarios, datasets and disclosures including company-specific transition targets that provide differentiations in outcome based on a company’s stated energy transition ambitions, as well as sector-specific features.
John Colas, Partner and Vice Chairman of Financial Services for the Americas at Oliver Wyman said:
“This new release will serve banks, insurers, asset managers, asset owners and corporate risk managers to quantify climate risks in an even more thorough manner and thereby more readily integrate into business decisions and client engagement.”