If you’re like me, everywhere you turn, the topic of climate change is in the air — on the radio, in news stories, on social media. Scientists are increasingly making the connection between extreme heat and climate change1, and we are certainly seeing many extreme weather events this year — from soaring temperatures in Europe to devastating flooding in Pakistan to Hurricane Ian wreaking havoc across the southeastern United States. However, the key question is how to take this information and make it useful. How do you translate these headlines and often abstract climate concepts into concrete information that makes sense?
S&P Global Sustainable1 is introducing the Climanomics Blog to answer as many of these questions as possible. This series will use our data, analytics and tools to explain the evolving climate landscape in plain English. This is not a blog just for PhDs and climate scientists — though some of our blog authors will be both. Rather, this is a place for anyone with an interest in climate and anyone impacted by climate change.
Our first few blogs will focus on the physical risks from climate change. S&P Global Sustainable1 data measures the exposure of an asset or company to eight climate hazards (extreme heat, extreme cold, wildfire, water stress, drought, coastal flood, fluvial flood and tropical cyclone). Importantly, our data also quantifies the future financial cost of this: we put a price on climate change.
Our data shows that continuing the current trajectory will impact nearly everyone: Under a high-emissions scenario, 92% of S&P Global 1200 companies will have at least one asset highly exposed to physical risks by the 2050s. And the impact will worsen considerably by the end of the century.
In order to mitigate these real world risks, it will be vital for investors and businesses to increase their climate competence. Climate science is improving, corporate climate disclosures are increasing and public awareness is rising. The Climanomics Blog aims to tie these pieces together into an accessible narrative.
You can learn more about our ESG research and insights here. And you can listen to our conversations with experts from across the sustainability world on the ESG Insider podcast from S&P Global Sustainable1 here.