Customer Type

Depositary receipt unit of an international bank

User Base

Many use cases are possible due to the high flexibility of the offering

Background

With over 150 years of history, S&P Global has long been a trusted source of information and analysis. As a leader in sustainability data, S&P Global is in an ideal position to provide customers with sustainability research. Its breadth and depth of coverage in diverse sectors and markets are unique. S&P Global Market Intelligence's data quality and accuracy enhance the credibility of S&P Global 's insights.

S&P Global can creatively combine data sets and analytics to produce ad-hoc thought leadership and research pieces for customers. These research pieces can be designed in whitepaper format or as bite-sized content. Customers can deploy research for business development, strategy, or marketing purposes. This offering distinguishes itself through a high level of flexibility. Over 150 datasets can be combined, all described on S&P Global's digital marketplace.

Out of those 150, S&P Global provides 25 sustainability-related datasets, including but not limited to:

Environmental & Climate

• Environmental: GHG emissions, pollutants, water, waste, natural resource usage, fossil fuel & energy
• Transition Risk: Carbon Earnings at Risk, Paris Alignment
• Physical Risk
• Nature & Biodiversity Risk

 Sustainability Scores & Data

• S&P Global ESG Scores and Raw Data
• Business Involvement Screens
• Green Bonds

All data sets come with the expertise of product specialists and data teams, who contribute to creating a piece that embodies the sophistication our customers need to distinguish themselves within their respective industries.

Pain Points

The depository receipt desk at a global bank aimed to develop thought leadership pieces and corresponding podcasts with a sustainability focus. As part of their ongoing marketing strategy, the depository receipt teams sought to showcase expertise and insights, increasingly incorporating sustainability perspectives to attract customers.

To distinguish themselves in the market, the depository receipt team aspired to provide a comprehensive package to their customers, encompassing sustainability insights. Their goals included:

• Raising awareness about sustainability among their customers to aid corporate preparedness for the transition.
• Educating, informing, and inspiring their target audience.
• Attracting new customers to list through them by highlighting exclusive access to innovative analysis.

The bank had a history of working with S&P Global, being a longstanding client of S&P Global Market Intelligence ("Market Intelligence") and IHS Markit. S&P Global's recognition and position as a research provider attracted the client to undertake this research-intensive project.

Solution

Together with the customer, S&P Global produced a list of potential research topics. In alignment with the customer, the first research subject was defined as follows: S&P Global would be the link between governance and climate risk management. The research methodology and objectives were transparently defined together with the customer. It was agreed that this topic could be optimally supported by Climate Credit Analytics (CCA) solution and S&P Global ESG scores. Then, the research team established outlines and onboarded data specialists to support the project with subject-matter expertise. The specialists constructed the study as follows:

Portfolio selection.	The customer and S&P Global selected four portfolios to analyze: two high-emitting and two low-emitting portfolios. Portfolios were chosen to reflect the customer's client base. Portfolio companies were selected according to these criteria: Market capitalization Geographic distribution Importance of sector
Climate Credit Analytics analysis.	The CCA model was applied to project portfolio companies' probability of default over different future time horizons. CCA considers a company's financial performance as indicated by annual reports and how companies are affected by climate change on a sectoral level. The model showed which portfolios were more exposed to credit risk when accounting for climate change.
Correlation with S&P Global ESG Scores.	The Climate Credit Analytics analysis results were connected with S&P Global's ESG scores. More precisely, researchers examined the G-dimension of the ESG scores. The hypothesis researchers wanted to test Is whether companies with strong CCA results also had good governance. Researchers established the linear correlation between the ESG Score and the portfolio's CCA analysis results for each portfolio. Research demonstrated that companies with a climate transition plan had more stable credit outcomes.
Outcomes presented in white paper format.	S&P Global created a 30-page-long research paper in white paper format, which was fully illustrated, concise, and actionable.

Key Benefits

The research delved into the interconnectedness of ESG, governance, and climate risk management. The findings were channelled into a workshop attended by over 70 of the bank's customers. Through this workshop, the client successfully raised awareness about climate-related risks, aiding its customers in adequate preparation for transitioning to a lower-carbon economy. In addition, S&P Global Market Intelligence collaborated with the client to produce a podcast disseminated to its clientele.

Consequently, the bank reaped the benefits of extensive research capabilities and unparalleled access to data, including: 

• Access to a team of climate and corporate governance specialists with substantial experience evaluating climate-related risks and corporate governance. This expertise provided unique insights into the correlation between corporate governance and climate risk.
• Integration of climate and ESG data in a manner not accessible to competitors, fostering a novel perspective on climate risk.
• Comprehensive project management support and oversight for all associated processes, empowering the company to customize the research output.
• Provision of a podcast script to facilitate easily comprehensible discussions of the result
• Delivery of a report bearing S&P Global's brand recognition, showcasing in -depth analysis and high-quality insights.