Climate Credit Analytics

The Link Between Climate Change And Credit Risk

As the effects of climate change and the importance of mitigating activities becomes more widely known, do you fully understand the financial risks and implications? Now you can assess the climate exposure of your lending and investing portfolios with Climate Credit Analytics from S&P Global Market Intelligence and Oliver Wyman.

Climate change has created a need to evaluate the impact of different climate-related scenarios on counterparties, investments, and portfolios. To support these efforts, S&P Global Market Intelligence and Oliver Wyman present Climate Credit Analytics, a climate scenario analysis and credit analytics model suite. These tools combine S&P Global Market Intelligence’s data resources and credit analytics capabilities with Oliver Wyman’s climate scenario and stress-testing expertise. To assess the climate exposure of your portfolios, contact us

A comprehensive, tailored approach to assess credit risk under multiple climate scenarios, including those published by the Network for Greening the Financial System (NGFS).

Climate Credit Analytics is designed to:

  • Enable users to perform climate stress testing and scenario analysis, as well as comply with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations
  • Meet growing requirements from regulators, investors, and other stakeholders to assess, disclose, and manage climate risks
  • Provide information and analysis to decision-makers as the conversation around climate risk continues to grow

It will also allow users to access a wider range of scenarios, with options for: 

  • Time horizons out to 2050
  • Multiple temperature targets and transition pathways
  • Variety of carbon pricing levels
  • Transition opportunities

Climate Credit Analytics translates climate scenarios into drivers of financial performance tailored to each industry, such as production volumes, fuel costs, and capex spending. These drivers are then used to forecast complete company financial statements under various climate scenarios, including those published by the Network for Greening the Financial System (NGFS), a group of over 80 central banks and supervisors. 

This will enable users to have comprehensive and consistent sector-specific modelling, including key high carbon-emitting sectors. The tool leverages S&P Global Market Intelligence’s proprietary datasets and capabilities, including financial and industry-specific data, sophisticated quantitative credit scoring methodologies, and company-level data from Trucost.

Partners John T. Colas, Ilya Khaykin, and Alban Pyanet are leading the development of Climate Credit Analytics with S&P Global Market Intelligence. 

Learn about Climate Credit Analytics to assess credit risks related to climate change and the transition to a low-carbon economy.