Back to How We Help Clients

Planetrics

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.
Learn more about PlanetView

Request a demo of Planetrics

Request a demo

Examples of our work

Preparing for a climate stress test

We worked with a national bank to prepare for a climate stress test by developing an asset-level analysis of the group’s corporate, commercial, retail real-estate, and sovereign counterparties. The bank has incorporated key insights about its climate exposure into its risk-management framework to allow continuous monitoring and management of climate-related risks in the future.

Mapping physical and transition climate risk

We helped a top private-equity fund model its exposure to physical and transition climate risk across its portfolio investments in sectors and regions. The fund used Planetrics’s analysis to inform its management of climate-related challenges and growth areas.

Quantifying the impacts of climate change on an equities portfolio

We supported a sovereign wealth fund in assessing the physical and transition risks of climate change for thousands of public equities across multiple geographies, helping them quantify the challenges presented by carbon costs, competition dynamics, and chronic and acute physical impacts. Building on these insights, the fund was able to develop tools to help investment teams integrate climate change considerations into their investment processes.

Developing strategy and reporting for climate risks and opportunities

For a leading insurer, we evaluated the impacts of a range of climate transition risks and physical risks on their investment portfolio and underwriting across multiple insurance business lines for a range of sectors and geographies. The insurer used these insights to inform its strategy and governance for managing climate risks and opportunities. The insurer also incorporated the analysis in its internal and public climate-related reporting.

Featured expert

My job is to make sure our clients can achieve the greatest impact from the insights our analytical tools provide by working with them to understand their needs. Since joining Planetrics, I’ve had the opportunity to make a difference with our clients by enabling greater transparency around emissions reporting, and by helping set them on the path toward emissions-reductions targets.

Christina Vermillion

Our leadership

Thomas Bligaard Nielsen

Solution Associate Partner
Thomas leads the Planetrics team, overseeing project work and data analytics development for banks, investors, and the insurance industry.

Shyamal Patel

Director of Product Management
Shyamal leads the modeling team for Planetrics and is responsible for the overall design and development of Planetrics’ modeling capabilities including climate risk, implied temperature rise, financed emissions, and target setting.

Mark Westcott

Director of Engineering
Mark manages the development of all of Planetrics’ technology solutions, including the PlanetView climate risk analysis platform.

CAREERS

Accelerate your career with Planetrics

Interested in purpose-led and meaningful work to support clients in critically measuring and managing risks posed from climate change? We’re looking for experienced financial and economic analysts, software engineers, and beyond to join our team.
Find your role at Planetrics

Related practices

McKinsey Sustainability
Learn how we work with private- and public-sector institutions on challenges created by growing pressure on resource systems and increasing environmental risk.

Financial Services
Learn how we help financial services firms improve performance. We offer a global perspective and cover all banking and insurance sectors and functions.

Private Equity & Principal Investors
Discover how we help investment organizations address their most pressing operational and organizational challenges.

Connect with McKinsey Sustainability

Contact