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Climate Risk & Response
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Climate Risk & Response

We help public- and private-sector entities build the capabilities, tools, and processes to understand their climate risk exposure and optimize their adaptation and mitigation strategies.

Climate change has reached a critical magnitude, creating physical (acute and chronic), transitional (changing technologies, regulations, policies, and stakeholder expectations), and liability risks. The speed at which these changes are happening makes it imperative for organizations to understand their cascading impacts and engage on a path of prudent mitigation and orderly adaptation.

McKinsey helps organizations develop robust qualitative and quantitative approaches to identify, measure, and manage their exposure to climate risk under all relevant scenarios.

Our Approach

Our comprehensive approach leverages deep industry knowledge, change-management expertise, proprietary risk frameworks, and advanced analytics to help our clients in three key ways:

  • building capabilities, processes, and governance to integrate climate risk into decision making
  • analyzing the universe of physical and transitional risks, prioritizing them based on potential impact, building and evaluating stress scenarios to quantify potential impact, and devising adaptation and mitigation strategies
  • charting energy-transition strategies that provide customized insights to guide companies on the most practical pathway to decarbonization

Examples of our work

Strategy and risk-capability development

We helped a multilateral development bank integrate climate risk into credit-risk measurement by developing a climate-risk-assessment framework covering physical and transitional risks.

Portfolio restructuring

We worked with an oil and gas company to restructure its portfolio, which included shifting away from oil to gas assets; developing short-cycle, lower-cost projects; and moving to cleaner fuels (such as by refining more middle distillates than gasolines).

Featured Capability

Decarbonization-Pathway Optimizer: Our digital tool helps countries or regions design decarbonized-target systems for industry sectors and quantify associated needs for capital- and operating-expenditure investment.

Featured Experts

Daniel Aminetzah
Senior Partner, New York
Advises global agricultural and specialty chemicals companies—along with investors in the sector—on corporate strategy, M&A, and...
Hauke Engel
Partner, Frankfurt
Partner in McKinsey's Sustainability Practice. Leads work on climate change globally and supports businesses across sectors with...
Holger Harreis
Senior Partner, Düsseldorf
Helps organizations implement transformation rapidly, with groundbreaking levels of adoption and impact
Hans Helbekkmo
Partner, San Francisco
Offers deep insights into risk management with a strong focus on enterprise risk frameworks, stress testing programs, and regulatory...
Kimberly Henderson
Partner, Washington DC
Supports companies and investors in developing strategies for the shift to low-carbon energy systems and specializes in technologies...
Martin Huber
Senior Partner, Düsseldorf
Leads our Wealth & Asset Management work globally, helping financial-services companies make better strategic decisions and implement...
Sean Kane
Partner, Southern California
Advises leading investors on strategies for sustainable investing and supports energy and technology companies on topics arising...
Mekala Krishnan
Senior Fellow, Boston
Leads the McKinsey Global Institute’s research on gender economics, inclusive growth, and economic development
Cindy Levy
Senior Partner, London
As global leader of our Risk Practice, helps large global banks on projects related to strategy, organization, and risk governance...
Rob Palter
Senior Partner, Toronto
Specializes in helping clients identify real estate investment opportunities and strategically manage real estate assets
Dickon Pinner
Senior Partner, San Francisco
Leads McKinsey’s Sustainability Practice globally, where he helps transform companies’ product, service, and asset portfolios...
Matt Rogers
Senior Partner, San Francisco
Applies 25 years of experience in the energy sector to help companies deliver performance, growth, and innovation
Hamid Samandari
Senior Partner, New York
Cofounder and senior leader of our global Risk Practice; chair of the Firm's Knowledge Council, a body that oversees our investments...
Olivia White
Partner, San Francisco
Brings deep expertise in strategy, risk management, and operational transformations to financial institutions worldwide
Jonathan Woetzel
MGI Director and Senior Partner, Shanghai
Leads research on China, Asia, and global economic and business trends, helps cities and regions create sustainable growth, and...
Dee Yang
Associate Partner, New York
Advises large institutions across the public, private, and social sectors on managing risk, rethinking strategy, and optimizing...

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