S&P Global’s sustainability intelligence source, Sustainable1, has released an enhanced physical risk exposure score and financial impact dataset.
Evolving from previous offerings, the dataset now covers eight hazards — including extreme heat, water stress, and tropical cyclones — and produces decadal averages of its scenario projections, from the 2020s to the 2090s.
The dataset’s exposure scores explain the exposure of an asset or company to climate change risks, while the financial impact metrics predict the projected financial costs of changing this exposure.
This information will allow stakeholders to understand and manage the physical and financial exposures to climate change of corporates and portfolios.
Steve Bullock, managing director and global head of ESG innovations and solutions, comments: "This new dataset uses the best available climate models to ensure market participants have access to high-quality data and evidence-based insights as they seek to understand and adapt to their exposure to the physical risks of climate change."
James McMahon, CEO of S&P Global’s Climate Service, says: "More than ever, investors and companies are seeking advanced analytics to respond to the financial impact of climate change. Essential to this is the ability to quantify the financial impact of climate change at asset level to enable meaningful mitigation and adaptation planning. In simple terms, this dataset allows companies and investors to understand their climate risks — and, vitally, what they could cost."
