Case Study: a large Asian company links climate change to credit risk with S&P Global Market Intelligence

A Large Asian Company Links Climate Change and Credit Risk

An Asia-based financial services holding company needed a better way to assess how climate transition risks could affect the creditworthiness of about 1,000 corporate clients in high-emitting sectors. Already using S&P Global Market Intelligence for carbon footprint reporting, the risk management team turned to S&P Global to find a unified approach to climate scenario analysis and stress testing that could support both investor disclosures and upcoming regulatory requirements.

S&P Global implemented Climate Credit Analytics, a sector-specific solution developed with Oliver Wyman that translates NGFS climate scenarios into financial drivers and forecasts company financial statements, credit scores, and probabilities of default through 2050. The platform uses S&P Global’s financial, environmental, and credit data to produce portfolio-wide results with industry nuance, support internal credit scoring, and scale across jurisdictions, giving the customer a standardized and transparent way to report climate-related credit risk.