Planetrics enables leading banks, insurers, asset owners, and asset managers to understand the impacts of climate change for their own business and make effective decisions.
Our platform supports financial institutions to incorporate climate-related risks into their strategy and portfolio management, risk management, stress testing, and reporting activities. Planetrics incorporates sophisticated climate analytics, drawing on leading research to quantify a range of climate-related risks for all major asset classes. It enables investors to understand climate risks for individual assets, specific sectors or asset classes, and entire portfolios or balance sheets. It does this via an interface that is simple to use, available on demand, and customizable to your specific needs.
Asset managers are using Planetrics to respond effectively to their clients’ increasing need to understand and manage climate risks.
The Planetrics platform enables asset managers to test portfolios against a range of climate scenarios, and to understand the size of climate risks and their drivers for specific assets, sectors, and asset classes.
This understanding enables asset managers to support their clients’ decision-making on incorporating climate risks and opportunities into their portfolios.
Invesco used the Planetrics model to evaluate the impact of multiple climate scenarios on its equity and bond investments. Invesco used the model to map Scope 1, 2, and 3 emissions (as rated by the Greenhouse Gas Protocol) and the temperature alignment of its holdings. It then tested climate impacts in a range of scenarios to understand the overall change in the value of its portfolio, the relative size of physical and transition risks, the sectors where those risks are most significant, and the specific drivers of transition and physical risks.
Invesco used the insights from this analysis to inform its Climate Change Report, which marked the first step on its TCFD reporting journey.
Banks use Planetrics to support their regulatory reporting, conduct climate stress testing, and enable robust climate risk management. As regulators increase their expectations for climate stress testing and risk management, Planetrics makes it simple for banks to meet the most demanding of those requirements, using leading climate analytics to test their balance sheets against a range of customizable scenarios. Planetrics also supports banks in reporting on their climate risks, including complying with the requirements of the Task Force for Climate-related Disclosures (TCFD). Planetrics enables banks to carry out their own climate risk analysis on a wide range of counterparties, including corporate and mortgage lending.
NatWest Group used the Planetrics model to support its preparation for the Bank of England’s climate stress test in 2021. This included an asset-level analysis of the group’s corporate counterparties, commercial and retail real-estate counterparties, and sovereign counterparties.
Planetrics enabled the bank to test asset-level exposures across multiple scenarios, taking into account a range of physical and transition climate risks.
The work gave NatWest Group valuable insights into the nature of its climate exposure, and these are now being incorporated into the Group’s risk management framework to allow continual monitoring and management of climate-related risks.
Insurers use Planetrics to manage the dual challenge of addressing escalating climate-change risks and shifting industry regulations.
Planetrics enables insurers to understand the economic impacts of the low-carbon transition on the general insurance market, as well as the physical impacts of climate change on companies and real-estate assets.
Lloyds of London used the Planetrics toolkit to examine the potential effects of the low carbon transition on the general insurance market. Lloyd’s reviewed the effects of decarbonisation scenarios on several sectors and regions in the global economy, and explored the opportunities and challenges for the insurance sector in general and the Lloyd’s market in particular.
The initiative, which also drew on expertise from the Grantham Research Institute at the London School of Economics, focused on sectoral trends up to 2030, and included five deep dives on the Coal, Marine, Construction, Solar PV and Biofuel sectors.
Pension funds, sovereign wealth funds, and other asset owners use Planetrics to understand and manage medium and long-term risks and opportunities for their assets.
Planetrics’ broad coverage of geographies, sectors, and asset classes enables owners to understand the physical impacts of climate change, and the implications of climate policy for their portfolios in detail. These insights allow them to improve their exposure to upside risks and limit their exposure on the downside, both by realigning their portfolios and engaging with companies in exposed sectors on their climate strategies.