Do you need to assess impact of climate change on your portfolios?
Translate complex climate scenarios into drivers of financial performance and carry out counterparty and portfolio-level analysis for thousands of companies across multiple sectors.
Assess the Impact of Climate Change Scenarios on Credit Risk
Through a highly dynamic, sector-specific approach, Climate Credit Analytics enables counterparty- and portfolio-level analysis of climate-related financial and credit risks for thousands of companies across multiple sectors. This includes a wide array of companies spanning various sectors, facilitating an in-depth assessment of the impact posed by climate-induced transition and physical risks on portfolios.
Credit Risk Management Teams
Consider transition and physical climate risks in your analysis of credit risk, and evaluate alternative scenarios and their potential impacts on your business.
Investment Teams and Portfolio Managers
Gain insight into potential changes in the value of portfolio companies during the investment horizon due to possible impacts of physical and transition climate risks.
Sustainability Teams
Support your firm’s net zero goals, and sustainability reporting with important climate scenarios that help you anticipate the future.
Corporate Counterparty Risk Teams
Assess the impact of climate change and related transition and physical risks on the creditworthiness of suppliers, customers, and business partners.
Granular, robust, reliable - data you can trust.
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), key regulatory scenarios, and short-term carbon-tax adjusted scenarios.
This enables users to have comprehensive and consistent modelling covering 140+ industries under the GICS (Global Industry Classification Standard) code via a product-specific approach for high-carbon emitting sectors, such as the oil and gas, power generation, metals and mining, and airline sectors, plus an emissions-based approach for construction, steel, agriculture, and other remaining non-financial sectors. Additionally, a top-down approach is available for name-based extrapolation for full portfolio coverage, where needed.
The robust suite of tools leverages S&P Global Market Intelligence’s proprietary datasets and capabilities, including financial and industry-specific data from across divisions of S&P Global, sophisticated quantitative credit scoring methodologies, and emissions and physical asset risk data from S&P Global Sustainable1, all of which enrichen the analysis and provide granularity to the approach. The offering enables automated bottom-up analysis for 2.2 million companies. Where users have the requisite information on their portfolio companies, a capability for proprietary analysis is available.
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 also enables users to access a wide range of scenarios, with options for:
- Time horizons out to 2050.
- Multiple temperature targets and transition pathways.
- A variety of carbon pricing levels
- Transition opportunities.
Commercial Banks
Many companies today are exposed to transition and physical risks due to climate change. That’s putting pressure on banks to better understand risks in their loan and investment portfolios. Climate scenarios, available via the Climate Credit Analytics solution, can help you evaluate exposures in your current portfolios and make more informed decisions moving forward.
Insurance
Success in the insurance industry is based on effectively predicting risks, but climate change and associated transition and physical risks are changing the game. Climate scenarios, available via the Climate Credit Analytics solution, can help you evaluate different climate pathways and their impacts on both the asset and liability side of the business to help prepare for the unknown.
Asset Managers
As the effects of climate change continue to intensify, understanding climate-related risks and developing strategies for mitigating those risks have become a top priority for asset managers around the world. The Climate Credit Analytics solution can help you evaluate different climate-related scenarios, the potential impact on your portfolios, and how to fine-tune investment selection in the future.
