Risk and Valuation Services
Climate Scenario Analysis
Assess the impacts of climate transition and physical risks across different industries and major asset classes.
What is Climate Scenario Analysis?
Climate scenario analysis is a method used to evaluate the potential impacts of climate change on organizations and economies by creating various plausible future scenarios. These scenarios typically consider different levels of greenhouse gas emissions, climate policies, and socio-economic factors to assess how these changes might affect an entity's operations, financial performance, and overall resilience.
What challenges does climate scenario analysis address?
Evaluating Climate Impacts
Assessing climate impacts over timescales relevant to counterparty exposures, enabling organizations to anticipate and prepare for potential disruptions.
Adapting to Scientific Advancements
Responding to the ongoing evolution in climate science and low-carbon technologies to ensure strategies align with the latest available knowledge and best practices.
Quantifying Financial Risks and Opportunities
Measuring climate risks (such as hazard exposures) and opportunities (like energy efficiency improvements) in financial terms to facilitate informed decision-making.
Assessing Competitive Advantage
Evaluating how competitive advantages may change over time, particularly in carbon-intensive sectors such as energy, utilities, industrials, and transportation.
Integrating Stakeholder Perspectives
Incorporating insights from various stakeholders, including investors, regulators, and customers, to ensure a comprehensive understanding of climate-related risks and opportunities.
Enhancing Organizational Resilience
Identifying vulnerabilities within operations and supply chains to develop strategies that improve resilience against climate-related disruptions.
Applications for Climate Scenario Analysis
Our Solutions
Analytics and Services for conducting climate scenario analysis
Exposure type |
Non-financial Corporates Emissions-based models for other sectors. |
Real Estate |
Financial Institutions |
Sovereigns Sovereign issuers |
Coverage |
Automated analysis of 2.2 million public and private non-financial corporates. |
Loan-level impacts on commercial mortgage loans and residential mortgage loans. |
Issuer-level impacts on financial institutions, including banks, investment managers, specialized financial institutions, and diversified financial institutions. |
Issuer- and issue-level impacts on sovereign issuers and their bonds. |
Output |
Detailed income statement, balance sheet and cashflow projections up to 2050. * Credit risk metrics such as credit scores, PDs, etc. * Market risk metrics such as value at risk. *** |
Relevant financial metrics such as impact to Loan to value, property, interest rate.** Credit risk metrics such as credit scores, PDs, etc. ** |
Relevant financial metrics such as assets, liabilities, deposits, loans. ** Credit risk metrics such as credit scores, PDs, etc. ** Market risk metrics such as value at risk. *** |
Relevant financial metrics such as sovereign liabilities, assets, yield. ** Credit metrics such as credit scores, PDs, etc. ** Market risk metrics such as value at risk. *** |
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Leverage the power of essential sustainability data and intelligence backed by integrated workflows, flexible delivery, robust linking capabilities, and unrivaled market insights.