
Helping financial institutions assess climate risk and opportunity
Vendor
McKinsey & Company
Company Website
Helping financial institutions assess climate risk and opportunity
Planetrics offers cutting-edge tools to help clients quantify, report, and manage climate impacts. We support financial institutions in assessing climate-related risks and opportunities, and managing and reducing their financed emissions to reach net zero. We model the impact of a broad range of physical and transition-related climate risks on tens of thousands of individual assets globally. We continuously evolve our platform, based on the latest climate models, data and research. This enables us to help our clients assess the exposure of their portfolios and investments to climate change, and quantify financial implications across all asset types.
What we do
Risk management
Develop risk scoring and modeling for financial institutions to project the potential financial impact of both the transition and physical risks of climate change.
Financed emissions measurement
Calculate the financed emissions baseline—the overall carbon footprint of investment, lending, and insurance activities—using the latest methodologies. This includes the Paris Agreement Capital Transition Assessment and the Science Based Targets Initiative.
Stress testing
Run the most recent climate scenarios—including the Bank of England's Climate Biennial Exploratory Scenario and the European Central Bank’s climate stress test—and calculate the effects on balance sheets, income statements, and credit risk.
Investment and lending processes
Provide detailed data to evaluate the climate risks and opportunities across multiple sectors, geographies, and asset classes to guide and inform the investment and lending process, which includes identifying investment opportunities in companies that support the transition to a low-carbon economy.
Strategy setting
Help financial institutions set science-based targets to reach net-zero financed emissions, and monitor and track progress. Provide support on alignment of net-zero pathways with portfolio companies.
Public disclosure
Produce the relevant metrics for the Task Force on Climate-related Financial Disclosures and other climate reporting using our solutions, including PlanetView.
Who we help
We offer solutions to clients across the financial sector to help them measure and manage climate risk, develop customized scenarios and analysis, and reduce their financed emissions, while meeting regulatory reporting and disclosure requirements.
Banks
- climate stress testing to meet the highest regulatory standards
- climate modeling support and capacity building
- incorporating climate risk and opportunity considerations into credit decision-making processes
- designing and implementing effective climate-risk management frameworks
- counterparty-level assessment of risks, opportunity, and counterparty transition plans
Asset managers and asset owners
- understand and manage medium- and long-term climate risks and opportunities for different assets
- test portfolios against a range of climate scenarios
- understand the size of climate risks and the drivers for specific asset classes, sectors, and securities
- improve exposure to upside risk from climate change—and limit downside risk exposure
Insurers
- manage the dual challenges of escalating climate risks and shifting industry regulations
- evaluate transition and physical climate impacts for underwriting and investment
- gauge the physical impacts of climate change on companies and real estate assets
Featured capability
PlanetView offers an easy way to access Planetrics insights
Access climate scenarios, securely input portfolio data, explore findings, and export results using our web-based PlanetView interface.
Portfolio Alignment Toolkit, how to get to net-zero
Instantly baseline your current financed emissions and intensities at portfolio, sector, and asset class level Assess the gap between your current trajectory and net zero pathways Automatically generate data outputs geared towards reporting