PwC UK’s Partnership With Risilience Adds Transition Risk Digital Capabilities To An Already Strong Offering

PwC UK’s Partnership With Risilience Adds Transition Risk Digital Capabilities To An Already Strong Offering

On July 26, PwC UK announced a partnership with Risilience, the climate risk assessment platform provider, to strengthen its climate analytics offering. Founded in 2021, Risilience uses digital twins to perform transition and physical climate risk analysis for corporates and financial institutions. For example, Risilience’s EarningsValue@Risk metric allows for the quantification of future financial impact under several climate scenarios.

This will further strengthen a strong climate consulting offering from PwC. Verdantix’s inaugural benchmark of the 15 most prominent climate change consulting providers identified the firm as one of the Leaders in the market, with strengths in data assurance, financed emissions management and net zero strategy, governance and target-setting. Verdantix identified three major takeaways from the Risilience partnership announcement:

• Risilience’s solution can enhance PwC’s financial climate risk assessment and regulatory planning capabilities. 
  As part of its climate analytics offering, PwC provides services to assess climate risk and perform scenario analysis. A partnership with Jupiter Intelligence provides PwC’s clients with granular physical risk data, including geospatial data, to map and quantify eight physical risks. Risilience will add to and enhance the firm’s capabilities to perform financial projections based on several climate risk scenarios, in line with IPCC guidance. Furthermore, PwC clients will be able to use the Risilience platform to assess the risk of regulatory changes and litigation – some of the most significant risks that corporates expect to face in the next three years, according to the Verdantix 2023 climate risk global corporate survey.

• PwC is developing its climate change digital capabilities, in line with other service providers.
  Verdantix research shows that the market for climate risk digital solutions is growing exponentially. Leading net zero and climate change consulting providers are developing their digital solutions networks, through partnerships with climate risk assessment tools (for example, Deloitte and Climate X; WTW and One Concern) and carbon management software providers (KPMG and Watershed; Accenture and Salesforce; Bain and Persefoni). Acquisition of smaller climate risk software providers by large consulting players is also not uncommon, and allows for the rapid development of subject-matter expertise (witness McKinsey’s acquisition of Planetrics).

• Consulting players are moving quickly to meet growing demand for climate risk consulting services. 
  The resilience of climate strategy, including scenario analysis, emerged as one of the most challenging TCFD disclosure requirements in the latest TCFD status report. Similarly, the Verdantix 2023 climate risk global corporate survey highlighted a lack of internal expertise as one of the main issues surrounding climate risk modelling, as well as a lack of awareness of sources for climate modelling. Services and digital solutions partnerships, like the one between PwC UK and Risilience, can support corporates and financial institutions with granular and comprehensive scenario analysis, using transparent and verified sources. 
   
  To read more about climate risk digital solutions and consulting services, visit the Verdantix Net Zero & Climate Risk research portal.