S&P Global MI, Oliver Wyman Assess Credit Impact of Climate Risk with New Analytics Suite
Financial and industry data, research and news provider S&P Global Market Intelligence and management consulting firm Oliver Wyman announced today the launch of Climate Credit Analytics, aiming to enable financial institutions and corporations to assess how a transition to a low-carbon economy will impact the creditworthiness of their counterparties and investments.
Ilya Khaykin, Partner and Head of Climate Risk for the Americas at Oliver Wyman, said:
“We’re excited to be launching Climate Credit Analytics with S&P Global Market Intelligence. The model suite will meet a key need of our clients to understand the impact of climate change on financial exposures, including for climate stress testing and TCFD reporting. Building our analytics with S&P Global’s extensive datasets results in a solution that generates deep insights on climate risk that will strengthen as more data becomes available.”
Combining S&P Global MI’s advanced Credit Analytics risk models and industry-specific datasets with Oliver Wyman’s climate scenario and stress testing expertise, the model suite translates climate scenarios into scenario-adjusted financials and scores at the company level.
Climate Credit Analytics includes coverage of more than 700,000 public and private companies across all non-financial sectors of the global economy and comprises carbon intensive sector specific models, such as airlines, automotive manufacturing, metals & mining, oil & gas and power generation.
Whit McGraw, Managing Director and Global Head of Credit Risk Solutions at S&P Global Market Intelligence, said:
“As businesses continue to assess transition risks, our newly launched models with specialized modeling of high carbon-emitting sectors will provide market participants a holistic approach to assess the potential financial impact of climate related scenarios on their portfolios. Our collaboration with Oliver Wyman integrates the expertise and capabilities of two world class players with a deep legacy in climate risk management, credit risk modeling, and stress testing and we’re looking forward to using these models to help the market continue its transition to a low-carbon economy.”
The company’s announced that UBS will be the first European-headquartered bank to be leveraging Climate Credit Analytics for transition risk assessment. Liselotte Arni, UBS Portfolio Underwriter for Sustainability and Climate Risk, said:
“We are pleased to collaborate with Oliver Wyman and S&P on this initiative. Partnerships such as this one that bring together the best of capabilities across data, methodologies, and analytics are critical for furthering our understanding of climate-related financial risk. Working collaboratively with the industry and expert organizations on climate risk topics is a key part of Our Climate Strategy.”