Research in the latest edition of the S&P Global Sustainability Quarterly explores the major climate risks companies face and the opportunities a green transition presents.
Published: June 28, 2024
Countries and companies around the world face increasing climate risks that, when properly managed, can also present opportunities — what we refer to in the title of this Second-Quarter Edition of the S&P Global Sustainability Quarterly as the great climate balancing act.
On one hand, the rising risks are clear. Physical climate hazards are becoming more severe and more frequent. Yet the research that follows finds that many large companies around the world are not engaging in climate adaptation efforts to build resilience to these hazards. S&P Global Sustainable1 data also shows that many leading US companies lack a net-zero goal. At the same time, research from S&P Global Ratings finds that the overall volume of climate litigation has increased exponentially over the past 10 years. While the strategic and financial impact of climate litigation on companies could be significant, the direct and indirect costs remain difficult to measure.
The risks have implications beyond companies’ direct operations. Supply chain due diligence regulations are becoming more common around the world, yet S&P Global Sustainable1 research finds that supplier codes of conduct are not widely disclosed.
Governments are also facing these risks. Research from S&P Global Ratings explores the potential credit risks that climate change poses to US governments, absent adaptation measures.
On the other hand, not all is doom and gloom. Research from S&P Global Ratings economists describes a shifting climate policy paradigm, from a view where economic growth is not possible toward a more constructive model in which growth and a sustainable environment can coexist. That, in turn, presents opportunities for innovation and growth. Research from S&P Global Commodity Insights finds that clean technology has reached parity with upstream oil and gas in global energy supply spending in real terms and will drive spending growth for the foreseeable future.
We hope that the research that follows will strike a balance — on the one side, shining light on the major climate and sustainability risks companies face; on the other, identifying places to better measure and manage these challenges while harnessing transition opportunities.
Lindsey Hall
Global Head of Thought Leadership
S&P Global Sustainable1
Thank you to all our colleagues across S&P Global who contributed to the design, production and publication of the S&P Global Sustainability Quarterly: Rameez Ali, Lauren Capolupo, Carla Donaghey, Ila Negi, Stephanie Oxford, Cat VanVliet.
In the latest edition of the S&P Global Sustainability Quarterly, we explore how investor demand for climate disclosures and efforts to decarbonize sectors entwine.
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