Energy and Climate Change
Overview
The increasing impacts of climate change pose risks to communities, ecosystems and economies around the world. S&P Global is committed to doing its part to address this growing crisis, as the wellbeing of our people and business is inextricably linked to the health of the communities where we live and work. This material topic includes our efforts to reduce greenhouse gas emissions (GHGs) and optimize energy use in our operations and value chain. It also covers the steps we are taking to manage climate-related physical and transition risks. S&P Global’s role in enabling a low-carbon future is discussed in Sustainability Products and Data.
Focus Areas
Reducing Scope 1, 2 and 3 GHG emissions in line with best-available science and the ambition to limit global warming to 1.5°C above preindustrial levels.
Decreasing energy intensity and emissions of our office spaces through energy efficiency, transitioning to low-carbon energy sources and seeking to lease net-zero office spaces.
Integrating proactive identification, management and reporting of climate related risks and opportunities.
2023 Highlights
Published updated near-term Scope 1, 2 and 3 emissions targets validated by the Science-Based Targets initiative (SBTi).
Achieved reductions in Scope 1 and 2 emissions intensity of 57% and 33%, respectively, from our 2019 baseline.
Increased share of renewable energy from 9% in 2022 to 22% in 2023.
S&P Global Sustainable1
“Our commitment to data-driven decision-making helps ensure we continually identify and address the most important levers for advancing our goal of net-zero emissions by 2040.”
Alyson Genovese
Senior Director, Global Head of Corporate Responsibility
Our Approach
While S&P Global’s business is not carbon intensive, we believe it is important for us to do our part in improving the environment. Measuring, managing and reducing our own environmental and climate impacts and risks is in our business interests, helps deliver long-term value, aligns with our corporate purpose and benefits our customers and our communities.
To drive progress toward our overarching goal of net-zero emissions by 2040, we have established near-term science-based targets covering our Scope 1, 2 and 3 emissions and are implementing a comprehensive strategy to reduce emissions associated with our offices, business travel and supply chain.
In addition, S&P Global continues to invest in and prioritize efforts to respond and adapt to physical and transition risks associated with climate change. This includes maintaining our commitment to proactive and transparent disclosure, and ongoing assessment of climate-related risks and opportunities in the context of the recommendations from the Task Force on Climate-related Financial Disclosures (TCFD).
The Board of Directors receives regular updates on a variety of environmental, social and governance (ESG) topics, including sustainability and climate-related matters, as part of its annual, in-depth strategy and risk management sessions, as well as ongoing discussions and committee reports throughout the year. At the management level, the President and Chief Executive Officer (CEO) is responsible for setting climate-related strategy and ensuring climate-related risks and opportunities are fully integrated into the company’s long-term business strategy. In addition to being a member of the company’s Board of Directors, the CEO oversees and reports to the Board on management’s progress against the company’s key strategic ESG and sustainability-related objectives, covering various climaterelated topics and initiatives. The CEO is supported by an experienced executive team, several members of which are responsible for managing and overseeing the overall enterprise strategy and approach to addressing issues and executing strategic initiatives relating to climate and sustainability matters.
For more information on oversight of climate-related matters, see S&P Global’s 2024 TCFD Report. For information on how we are involving our people in protecting the environment, see Community and Economic Impact.
Our Climate Targets
and Progress
* Our long-term target of net-zero emissions by 2040 has been submitted for validation to SBTi.
** 2019 baseline: Scope 1: 980 tCO2 e/M ft2 ; Scope 2: 5,571 tCO2 e/M ft2 ; Scope 3, Category 6: 65,600 tCO2 e.
† The adoption of the Science Based Targets initiative’s updated Commitment Compliance Policy in January 2023 caused some suppliers’ status to be changed to “Commitment Removed,” even though many are continuing to work to set science-based targets. We expect this to temporarily lower our reported progress while suppliers finish developing their targets.
2023 Progress**
Scope 1:
417 tCO2 e/M ft2
57% reduction
from 2019 baseline
Scope 2:
3,683 tCO2 e/M ft2
33% reduction
from 2019 baseline
Scope 3 (Business Travel):
51,255 tCO2 e
22% reduction
from 2019 baseline
Supplier Engagement:
37% spend allocated
to suppliers who set
their own science-based targets
Scopes 1 and 2 – Real Estate
The property that S&P Global owns and leases has a large part to play in our ability to achieve our targets for energy and GHG emissions, as well as other environmental metrics. Working in close collaboration with our real estate partner CBRE we have established a five-part strategy to continuously enhance the environmental performance of our managed property portfolio.
Our Real Estate Sustainability Strategy
* Excludes CRISIL and CARFAX
As we work towards our net-zero goals, we are increasingly focused on our leased facilities, which currently represent the majority of our portfolio. In 2023, we developed a set of green lease clauses to be used in all future lease negotiations. Key provisions include sub-metering of energy and water, purchasing renewable energy, and developing and implementing a pathway to net-zero for the overall facility.
We have also developed a new sustainable office fit-out specification that includes key measures such as full electrification, smart building controls, installing the highest efficiency appliances and heating/cooling systems, and minimizing embodied carbon in all materials and fixtures.
Another key focus is transitioning to renewable energy sources to meet our electricity needs. Where S&P Global has direct control over electricity procurement, we work directly with the utility to transition to a renewable energy tariff or equivalent program. Where electricity is provided by a landlord, we seek to require or influence them to ensure it is from renewable sources, or we purchase certified renewable energy certificates (RECs) to account for our usage. In 2023, we transitioned to a renewable energy tariff for our offices in Ahmedabad, India, where we procure energy directly, and began purchasing RECs for our corporate offices in New York. As a result, we increased our share of purchased electricity from renewable sources to 21.8% globally (+12.6 percentage points year-over-year).
Additional activities and highlights in 2023 included:
- Leased new offices in buildings with LEED Platinum and LEED Gold certifications – in Gurgaon, India, and Sydney, Australia, respectively. Across S&P Global, 29% of our global workforce were located in LEED-certified or equivalent buildings or office spaces.8
- Maintained and enhanced compliance with existing and new mandates such as the UK Simplified Energy Reporting Scheme and the European Energy Efficiency Directive.
- Completed a net-zero carbon study of our Englewood, Colorado, offices to support compliance with new Energize Denver Building Energy Performance Requirements and alignment with the Zero Energy Offices Design & Implementation Guidance from the U.S. Department of Energy.
- Enabled employees to use their annual wellbeing stipend to support sustainability initiatives at home, such as purchasing renewable energy or making energy efficiency updates.
For more information on how our real estate sustainability strategy addresses other operational environmental impacts, see Biodiversity and Nature.
8 As a result of consolidation of IHS Markit offices, colleagues in some BREEAM/LEED-certified offices were moved into non-certified offices.
9 Includes Scope 3 Categories 1 (Purchased Goods and Services), 2 (Capital Goods) and 6 (Business Travel).
Scope 3 – Business Travel
S&P Global’s people work in offices and remotely across 43 countries, while our customers are located in many more throughout the world. Consequently, travel is a regular part of our business and a key area of focus for reducing our GHG emissions.
Our Travel Services team guides us in making purposeful travel decisions – including in selecting reasons for travel, mode of transport and service class – by establishing clear policy requirements and allocating specific targets to business divisions. In 2023, we improved visibility and decision-making by transitioning to a single global travel agency that displays GHG emissions for flights, hotels, car rentals and rail options at the time of booking. We also made policy improvements and enhanced tracking to support implementation of stricter requirements for business class eligibility.
In addition, we continue to invest in technology that supports hybrid and virtual meetings and working to ensure a reduction in travel does not equal a reduction in quality of engagements.
Carbon Offsets
To further reduce our impact and contribute to climate solutions beyond our own operations, we purchase carbon offsets equivalent to our Scope 1 and Scope 3 Category 6 (Business Travel) emissions. In 2023, we purchased and retired a total of 31,419 certified carbon credits involving forest conservation, renewable energy and clean cooking in the U.S., Brazil and India. The certification standards for these projects are the Verified Carbon Standard, the ACRE Carbon Standard (Brazilian state of Acre) and the American Carbon Registry. Carbon offsets are not counted as progress toward our targets.
Scope 3 – Supply Chain
Given the nature of S&P Global’s business, the majority of our GHG emissions – approximately 79% in 2023 – are attributable to our supply chain and business travel.9 It is therefore important that we continue to engage with suppliers to better understand our footprint and opportunities for improvement, as well as to encourage and support their transition efforts.
In 2023, we undertook several initiatives to increase supply chain visibility and support strategic planning to drive ongoing emissions reductions. We:
- Conducted spend-based GHG emissions analysis of full 2023 supplier base, using Sustainable1 Trucost methodology.
- Surveyed all Tier 1 and carbon-intensive suppliers to determine if they have emission reduction programs and have (or have committed to) set science-based targets.
- Explored options for adopting supply-chain carbon accounting and planning software.
- Engaged a consultant to review current programs and make recommendations to accelerate a path to reducing supply chain environmental impacts.
For additional information, see Responsible Sourcing and Supply Chain Management.
YOY Suppliers Signed Up for Science Based Targets Initiative
Identifying and managing climate-related risks and opportunities
S&P Global integrates climate-related risks and opportunities into the larger enterprise strategy to fuel innovation and strengthen strategic decision-making with long-term, resilient operations in mind. We relied on the expertise of S&P Global Sustainable1 and its Climate Risk Assessment to identify climate-related physical and transitional risks for 2023. The analysis enables S&P Global to assess how resilient the corporate strategy is in relation to relevant climate-related risks, taking into consideration various scenarios, including 2°C and lower scenarios and varying time horizons.
For more information on our approach to identifying and managing climate-related risks and opportunities, see our 2024 TCFD Report.
Sustainability-Linked Financing
To further our commitment to move toward a net-zero future, S&P Global has leveraged innovative financing instruments including a $2 billion sustainability-linked banking facility tied to our SBTi-approved goals and a $1.25 billion sustainability-linked bond issuance. For additional details, see page 45 of our 2022 Impact Report.
* GHG emissions from Tier 1-3 suppliers with science-based targets as a percentage of total GHG emissions (CO2 e) from all suppliers.
** The total number of vendors reported for 2023 includes S&P Global, CARFAX, AMM, OSTTRA and CRISIL. However, the 2019-2023 figures for Tier 1 vendors are only for S&P Global.
Looking Ahead
As we move forward, we aim to continue strengthening our approach and initiatives as part of our pathway to net-zero emissions by 2040. Key efforts in 2024 are expected to include:
- Expanding renewable energy tariffs to all offices in India.
- Implementing LED retrofit projects in several offices globally.
- Piloting and testing an internal carbon pricing schema within Travel, Real Estate and Procurement. This includes implementing divisional emissions reporting and scorecards and implementing a shadow price with real estate leases.
See data tables in Appendix