// . // Climate And Sustainability // Financial Risk and Opportunity

What We Do

Financing presents both a barrier to and the greatest enabler for the climate transition.

Our historical measure of ‘financial success and stability’ is shifting. Investors and financial institutions need to account for climate risks in their portfolios, driving revaluations of assets and of initiatives. Costs long externalized now need to be recognized, incorporating impact on people and planet as well as profit in how we measure success. But financing the transition means engaging with carbon-intensive activities, not just avoiding them.

We help businesses value their options and provide decision-useful analytics. Oliver Wyman’s deep risk expertise and experience with the world’s leading financial institutions includes climate risk, both transition and physical. As part of Marsh & McLennan, we can also draw on the risk and resilience expertise of our colleagues from Marsh and Guy Carpenter. Together with S&P Global, we have a proprietary approach to measuring climate credit risk. We are also working with the World Economic Forum and the United Nations Environment Program Finance Initiative (UNEP FI), among others, to bring you the latest financial methodologies for a net-zero future.

CLIMATE RISK ANALYTICS

Understanding climate risk allows you to make informed decisions in order to hedge against them. We have a strong history of modeling climate risk scenarios for both financial institutions and industrials. Covering risk both from physical changes in climate and from society’s efforts to mitigate the crisis, we help you to get a clear overview of the climate risks and opportunities your business faces.

CLIMATE FINANCE DESIGN

Financing the transition is a critical enabler for a net-zero future. We help companies with the creation of new climate finance products, alignment of investment and product portfolios with the transition, and access to the much-needed financing for companies making the transition.

What We Think

Powering The Net-Zero Economy

Financial institutions have a crucial role to play in combating climate change

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Managing Climate Risk in the U.S. Financial System

Report by the Climate-Related Market Risk Subcommittee, Market Risk Advisory Committee of the U.S. Commodity Futures Trading Commission

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Addressing Climate Change in Insurance

While many financial institutions around the world are placing greater focus on climate change as a key strategic issue, the US life insurance sector has been relatively modest in its actions to date

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DECARBONISATION AND DISRUPTION

Understanding the financial risks

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Climate Credit Analytics

S&P Global Market Intelligence and Oliver Wyman's climate scenario analysis and credit analytics model suite

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Climate Transition and the Federal Reserve

The Federal Reserve Board will substantially elevate the priority of climate-related risk in its regulations and supervision going forward.

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Transition Check: Climate Scenario Planning

UNEP FI and Oliver Wyman's Transition Check tool integrates the latest climate scenarios into an industry-leading approach for assessing transition risk

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Climate Change is a Global Financial Risk

Climate change will put at risk around 2 percent of global financial assets by the year 2100

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HOW TO FINANCE INDUSTRY'S NET-ZERO TRANSITION

For banks, the COVID energy slump shows the urgency of climate risk

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