S&P Global Market Intelligence and management consulting firm Oliver Wyman announced a collaboration with Citi that will see the global financial services firm utilizing the companies’ newly introduced climate scenario analysis and credit analytics model suite Climate Credit Analytics. The bank will use Climate Credit Analytics to analyze and manage climate-related credit risk.

Colin Church, Citi’s Head of Climate Risk Management, said:

 “Climate Credit Analytics aligns with emerging regulatory directives and will help enable the broader industry to better analyze and manage climate risks while deploying capital to underpin long term sustainable growth. Further advancing this technology is common cause and very timely, we are delighted to be working with such capable partners.”

S&P and Oliver Wyman launched Climate Credit Analytics earlier this year. The model suite is designed to help financial institutions and corporates assess how a transition to a low-carbon economy will impact the creditworthiness of their counterparties, combining S&P Global Market Intelligence’s advanced Credit Analytics risk models and data with Oliver Wyman’s climate scenario and stress testing expertise.

Eliza Eubank, Citi’s Head of Environmental and Social Risk Management, said:

“This new tool will provide valuable rigor for analyzing our client portfolios under different climate transition risk scenarios, enabling us to build on our prior climate scenario analysis work. Integrating this analysis will contribute to the climate risk pillar of our Sustainable Progress Strategy and our ongoing Task Force on Climate-related Financial Disclosures (TCFD) implementation.”

Martina Cheung, S&P Global Market Intelligence’s President, said:

 “Climate change is a non-traditional risk, and financial institutions and corporates are working to understand its implications. We have a deep legacy in credit analytics and we are proud to work with Citi, a leader in this area, to collaborate on creating integrated climate and credit-related analytics to navigate the effects of climate risk on the financial markets.”

Oliver Wyman’s John Colas, Partner and Vice Chairman, Financial Services Americas, said:

“We are delighted that Citi will be the first bank to utilize Climate Credit Analytics. This unique solution to quantify climate risks is readily customizable, incorporates the NGFS Scenarios, and covers all corporate sectors, including major greenhouse gas emitting sectors. Citi’s commitment to environmental finance exemplifies the critical role that financial institutions play in combating climate change.”