The Climate Credit Analytics solution, originally launched in June 2021 as a joint effort between S&P Global Market Intelligence and Oliver Wyman, was designed to help financial institutions and corporations assess how the changing climate and the shift toward a low-carbon economy would affect the creditworthiness of their counterparts and investments. This solution interprets climate scenarios into scenario-adjusted financial data and scores at the company level. It achieves this by combining S&P Global Market Intelligence’s sophisticated Credit Analytics risk models and industry-specific datasets with Oliver Wyman’s top-tier climate scenario and stress testing capabilities.
Furthermore, since its initial launch, the offering has expanded to include:
- New climate scenarios, including Phase III scenarios released by the Network for Greening the Financial System (NGFS) and regulatory scenarios from the European Central Bank, Monetary Authority of Singapore, and the U.S. Federal Reserve.
- Additional datasets and disclosures, including company-specific transition targets that provide varying outcomes based on a company’s stated energy transition goals.
- Sector-specific intricacies, such as energy transition forecasts for the automotive industry from S&P Global Mobility and cost curves for commodity assets from Platts, a division of S&P Global Commodity Insights.
“With the increased frequency of climate-related events, the continued enhancement of this solution is particularly significant as companies seek to evaluate the impact of climate on their businesses, counterparties and investments,” said Whit McGraw, Head of Credit and Risk Solutions, S&P Global Market Intelligence. “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.”
“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,” said John Colas, Partner and Vice Chairman of Financial Services for the Americas at Oliver Wyman.