Climate Credit Analytics (Oliver Wyman and S&P Global)

Core Features

Climate Credit Analytics combines S&P Global's financial and environmental datasets with Oliver Wyman's climate modelling and stress-testing expertise. Its capabilities cover company-level assessments, portfolio analysis and climate-related financial risk reporting.

• Climate Scenario Analysis: Evaluates transition and physical risks using scenarios from the Network for Greening the Financial System (NGFS), financial regulators and short-term carbon tax models. Users can compare different transition pathways, temperature outcomes and carbon pricing assumptions through 2050.

• Climate-Adjusted Credit Risk Assessment: Projects how climate scenarios affect corporate financial statements, credit scores and probabilities of default. The analysis incorporates changes in operating costs, production volumes, capital expenditure and other industry-specific financial drivers.

• Sector-Specific Financial Modelling: Uses six bottom-up models covering more than 140 industries, with specialized approaches for emissions-intensive sectors such as oil and gas, power generation, metals and mining, automotive manufacturing and aviation.

• Physical Climate Risk Integration: Incorporates physical hazard exposure and financial impact data into credit assessments, allowing users to evaluate the combined consequences of climate-related physical and transition risks for companies and portfolios.

• Portfolio Valuation and Risk Analysis: Aggregates company-level results across lending and investment portfolios. It estimates climate-related changes in cash flows, enterprise values and equity valuations, supporting credit portfolio management, investment analysis and transition financing decisions.

• Data Integration and Regulatory Stress Testing: Provides access through S&P Capital IQ Pro, automated Excel templates and API web services. Users can incorporate proprietary company data, compare counterparties and generate analysis supporting regulatory climate stress tests and ISSB-aligned disclosures.

Closing Insights

Climate Credit Analytics was launched in June 2021 through a collaboration between Oliver Wyman and S&P Global Market Intelligence. UBS was identified as its first European-headquartered banking customer, using the solution to assess climate transition risks.

In 2023, the partners expanded the solution to incorporate physical climate risks, adding hazard exposure and financial impact information for more than 20,000 companies. The platform has since expanded its coverage, with current documentation indicating automated bottom-up analysis for 2.2 million companies across more than 140 industries. It also supports climate-related valuation analysis for equities and bonds.

Climate Credit Analytics is particularly relevant to financial institutions seeking to integrate climate considerations into established credit risk processes. Its outputs are scenario-based estimates rather than predictions of future defaults or financial losses. Users should therefore assess the underlying assumptions and model limitations alongside their internal risk methodologies.