S&P Global Market Intelligence and Oliver Wyman Enhance Climate Credit Analytics with Addition of Climate-related Physical Risks

Rhea-AI Summary

S&P Global Market Intelligence and Oliver Wyman have enhanced the Climate Credit Analytics solution to include climate-related physical and energy transition risk. The addition of S&P Global Sustainable1 data will support clients in understanding and managing the exposure of corporates and portfolios to climate change. The solution combines advanced risk models and industry-specific datasets to translate climate scenarios into scenario-adjusted financials and scores.

Positive

• The enhancement of the Climate Credit Analytics solution will provide clients with valuable information on the physical risk exposure and financial impact of over 20,000 companies mapped against climate change scenarios.
• The inclusion of S&P Global Sustainable1 data will enable better assessment of the aggregated impact of climate risk.
• The solution has been expanded to incorporate new climate scenarios and additional datasets, providing more comprehensive insights for financial institutions and corporations.
• The collaboration between S&P Global Market Intelligence and Oliver Wyman ensures the solution's accuracy and reliability.

Negative

• None.

Model suite now includes S&P Global Sustainable1 data enabling further assessment of aggregated impact of climate risk

NEW YORK, Oct. 25, 2023 /PRNewswire/ -- S&P Global Market Intelligence and Oliver Wyman today announced the enhancement of the S&P Global Market Intelligence Climate Credit Analytics solution to include both climate-related physical and energy transition risk. The addition of 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 range of four CMIP6 Shared Socioeconomic Pathway (SSP) climate change scenarios will support clients as they seek to understand and manage the physical and financial exposure of corporates and portfolios to climate change.

Developed through a collaboration between S&P Global Market Intelligence and Oliver Wyman, Climate Credit Analytics was launched in June 2021 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 translates climate scenarios into scenario-adjusted financials and scores at the company level by combining S&P Global Market Intelligence's advanced Credit Analytics risk models and unique industry-specific datasets with Oliver Wyman's industry-leading climate scenario and stress testing capabilities.

Since then, the offering has also expanded to incorporate:

• New climate scenarios, including Phase III scenarios published 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 differentiations in outcome based on a company's stated energy transition ambitions
• Sector specific nuances including automotive industry energy transition forecasts from S&P Global Mobility and commodity asset cost curves from Platts, part 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.

Since its launch in June 2021, Climate Credit Analytics has been leveraged for regulatory climate stress testing by financial institutions in various jurisdictions globally as well as for the purposes of climate scenario analysis aligning to the recommendations of the Task Force for Climate Related Financial Disclosures.

For additional information on Climate Credit Analytics, please visit S&P Global Market Intelligence.

S&P Global Market Intelligence's opinions, quotes, and credit-related and other analyses are statements of opinion as of the date they are expressed and not statements of fact or recommendation to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security.

About S&P Global Market Intelligence

At S&P Global Market Intelligence, we understand the importance of accurate, deep and insightful information. Our team of experts delivers unrivaled insights and leading data and technology solutions, partnering with customers to expand their perspective, operate with confidence, and make decisions with conviction.

S&P Global Market Intelligence is a division of S&P Global (NYSE: SPGI). S&P Global is the world's foremost provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help many of the world's leading organizations navigate the economic landscape so they can plan for tomorrow, today. For more information, visit www.spglobal.com/marketintelligence.

About Oliver Wyman

Oliver Wyman is a global leader in management consulting. With offices in more than 70 cities across 30 countries, Oliver Wyman combines deep industry knowledge with specialized expertise in strategy, operations, risk management, and organization transformation. The firm has more than 6,000 professionals around the world who work with clients to optimize their business, improve their operations and risk profile, and accelerate their organizational performance to seize the most attractive opportunities. Oliver Wyman is a business of Marsh McLennan [NYSE: MMC]. For more information, visit www.oliverwyman.com.  Follow Oliver Wyman on Twitter @OliverWyman.

Media Contacts

Kate Smith
S&P Global Market Intelligence
+1 781-301-9311
katherine.smith@spglobal.com 

Jung Kim
Oliver Wyman
+1 347 260 3819
jung.kim@oliverwyman.com 

 

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SOURCE S&P Global Market Intelligence

FAQ

What does the Climate Credit Analytics solution include?

The Climate Credit Analytics solution includes climate-related physical and energy transition risk assessment for over 20,000 companies mapped against climate change scenarios.

What does the addition of S&P Global Sustainable1 data provide?

The addition of S&P Global Sustainable1 data provides information on the physical risk exposure and financial impact of companies in relation to climate change.

What other enhancements have been made to the solution?

The solution has been expanded to include new climate scenarios, additional datasets, and sector-specific nuances, providing more comprehensive insights for clients.

Who developed the Climate Credit Analytics solution?

The Climate Credit Analytics solution was developed through a collaboration between S&P Global Market Intelligence and Oliver Wyman.

How has the solution been used since its launch?

The solution has been leveraged for regulatory climate stress testing by financial institutions globally and for climate scenario analysis aligned with the recommendations of the Task Force for Climate Related Financial Disclosures.