Methodology Review & Change

S&P Global Commodity Insights follows a clearly defined process for introducing or making changes to its methodologies. This process is based on full transparency and communication with industry stakeholders aimed at gaining market acceptance for any proposed introduction or changes to methodology.

Once we identify the need for a methodology change:

• We assign an individual as owner of the entire change process. This individual is accountable for ensuring all processes are correctly followed.
• We publish a proposal in the form of a Subscriber Note and invites feedback over a specified time period. The timelines may vary depending on the nature of the change.
• After feedback is received and collated, we consider the information, make a decision and publish a Subscriber Note. If we decide to proceed with the change, we provide additional opportunity for feedback before the change is implemented.
• Any written feedback received by us in relation to a methodology consultation that has not been designated as confidential will be made available to users upon request.
• Any written feedback on methodologies that has not been marked as confidential can be made available to users upon request.

S&P Global Commodity Insights employs an internal tracking tool for methodology changes which has been developed to ensure controlled internal sign-off at each stage of any change and also provides a clear audit trail.

We categorize methodology changes into types. (See table below.) All methodology changes are formally communicated to the market through Subscriber Notes.

Factors, including external factors beyond the control of S&P Global Commodity Insights, may necessitate changes to, or the cessation of, the benchmark. Such factors may include changes in physical market conditions that could materially impact the parameters of an assessment.

We do not sponsor, endorse or market any specific financial product or provide investment advice. Users of Platts benchmarks should nevertheless be advised that changes to, or the cessation of, the benchmark may have an impact upon financial instruments that reference the benchmark and users should contact the relevant product provider or fund manager for more information.

We are committed to providing advance notice in a clear time frame that gives users sufficient opportunity to analyze and comment on the potential impact of such proposed changes. Time frames vary depending on our analysis of the overall circumstances of a particular change.

Methodology changes that materially alter an assessment and require an update to the methodology specification are preceded by extensive bilateral discussions with market stakeholders. Routine changes, such as seasonal quality or pipeline cycle changes, time-rolling assessments, or clarifications, generally do not materially alter an assessment.

We may hold open public forums in which material methodology changes and feedback are presented, and at which further feedback may be given.

When an assessment ceases to be relevant to the marketplace, we generally will provide at least six months' notice of its intention to discontinue an assessment, although this timeline can be shortened to three months when we expect the market impact to be negligible. If an unforeseen event causes a severe disruption in a particular market, the timeline for discontinuing an assessment (sometimes on a temporary basis) may be shortened even further.

On occasion, we may need to respond urgently to changing market conditions, perhaps precipitated or warranted by a serious event or market situation. Such changes are also communicated in a Subscriber Note setting out what the issue is and what changes are to be made.