Climate Credit Analytics solutions for smarter risk analysis

Introducing Climate Credit Analytics

Climate change is reshaping credit risk, portfolio performance, and regulatory expectations. Financial institutions need a consistent way to understand how transition and physical climate risks could affect counterparties, sectors, and portfolios over time.

Developed by S&P Global Market Intelligence and Oliver Wyman, Climate Credit Analytics combines climate scenario and stress-testing expertise with market-leading data and credit analytics. It translates climate scenarios into industry-specific financial drivers, including production volumes, fuel costs, and capital expenditure, and projects company financial statements across NGFS, regulatory, and short-term carbon-tax scenarios.

Coverage spans more than 140 Global Industry Classification Standard (GICS) industries, with detailed approaches for high-emitting sectors, emissions-based modeling for other non-financial sectors, and top-down extrapolation where needed. This gives credit risk, investment, sustainability, and corporate counterparty teams a consistent view of exposure, resilience, and potential portfolio impact across thousands of companies.

Aerial view of deforestation showing cleared land alongside dense green forest, illustrating environmental changes associated with physical climate risks.

Connect climate scenarios to financial and credit risk

Climate Credit Analytics translates climate scenarios into industry-specific financial drivers, including production volumes, fuel costs, and capital expenditure. It projects company financial statements across climate scenarios developed by the Network for Greening the Financial System regulatory, and short-term carbon-tax scenarios, supporting consistent portfolio analysis of transition and physical climate risks.

Climate Credit Analytics brings depth, scale, and scenario flexibility to climate credit risk analysis, helping users assess exposure across industries, companies, and time horizons.

140+

industries covered under GICS classification

2.2M

companies supported by bottom-up analysis

2050

time horizons for long-term scenario analysis

Connect climate risk to financial and credit outcomes

Assess transition and physical risks through scenario analysis, stress testing, financial projections, and credit risk measures.

Input (by S&P Global)

Methodology (by Oliver Wyman)

Outputs

Bottom-up module

Climate scenarios

Company financials

Emissions data

Physical risk data

Transition plans

Industry-specific data

Key drivers

First, we identify and assess key drivers to translate the impact of a scenario on a company's financial statements

Transition risk

Physical risk

Price

Volume

Unit cost

Capital expenditure

Asset value

Financial statements
(scenario-adjusted)

Next, we develop scenario-adjusted financial statements based on the key drivers

Income statement

Cash-flow statement

Balance Sheet

Key drivers
(scenario-adjusted)

Finally, we create a linkage between scoring model metrics and the scenario-adjusted financial statements and re-run the model

Credit scores¹

Bond valuation

Equity valuation

Driver drill downs

Financial statements

Credit metrics¹

(by S&P Global)

Top-down module

Portfolio data

Extension to Portfolio

For companies that fall out of scope or cannot be run-bottom up, we extrapolate results based on company characteristics and bottom-up population

Portfolio results

1. S&P Global Ratings does not contribute to or participate in the creation of credit scores generated by S&P Global Market Intelligence. Lowercase nomenclature is used to differentiate S&P Global Market Intelligence credit model scores from the credit ratings issued by S&P Global Ratings.

Support climate risk decisions across key teams

Use climate scenario analysis to assess portfolio exposures and support risk, investment, sustainability, and counterparty decisions.

Credit risk management teams

Consider transition and physical climate risks in credit risk analysis, compare alternative scenarios, and evaluate their potential effects on portfolios and business decisions.

Investment teams and portfolio managers

Assess how transition and physical climate risks could change the value of portfolio companies over an investment horizon and inform portfolio decisions.

Sustainability teams

Use relevant climate scenarios to support net-zero goals, sustainability reporting, and forward-looking analysis of climate-related financial risks.

Corporate counterparty risk teams

Assess how climate change and related transition and physical risks may affect the creditworthiness of suppliers, customers, and business partners.