In this special edition of the S&P Global Sustainability Quarterly, we take stock of how climate risks are impacting companies and countries around the world, and how they are responding to this challenge.
Published: November 27, 2023
COP28, this year’s annual UN climate change conference, brings together stakeholders from the public and private sector to seek concrete solutions to the climate crisis. The urgency is clear. The central goal of the 2015 Paris Agreement on climate change is to limit global warming to well below 2 degrees C above pre-industrial levels, and ideally to 1.5 degrees. For reference, the base case scenario from S&P Global Commodity Insights implies the world warming by about 2.4 degrees C by 2100.
Against this backdrop, the COP28 Special Edition of the S&P Global Sustainability Quarterly brings together our research and insights on key themes that will be in focus in Dubai. We start with physical risk and its impacts on countries and companies. Research from S&P Global Ratings finds that physical risks linked to climate change may become an increasing source of supply-side shocks for the economy, particularly if adaptation and resilience investments are not stepped up. S&P Global Sustainable1 research finds that the physical impacts of climate change represent a significant financial risk for many companies without adaptation measures.
The research that follows charts the path forward. Report from S&P Global Ratings explores the industries that are more exposed to climate transition risks, while S&P Global Mobility provides a case study on the auto industry’s decarbonization challenges and opportunities. Research from S&P Global Market Intelligence analyzes the impact of the EU’s Corporate Sustainability Reporting Directive (CSRD) on companies in Europe and beyond.
Research from S&P Global Commodity Insights and S&P Global Ratings explores the outlook for oil and gas financing and the role of Islamic finance in supporting the climate transition in the Middle East and globally. As the world turns its eyes to Dubai, we hope that the research and data gathered here will contribute to advancing the transition.
Richard Mattison
Vice Chair
S&P Global Sustainable1
Physical risks linked to climate change may become an increasing source of supply-side shocks for the global economy, particularly if adaptation and resilience investments are not stepped up.
Without adaptation measures, the physical impacts of climate change represent a significant financial risk for many companies.
This research highlights the industries that are more exposed to climate transition risks, including those related to climate policy, and legal, technology and market changes to address mitigation.
S&P Global Mobility analysis shows that automakers building EVs may not be enough to hit Paris Agreement goals.
EU corporate sustainability reporting rules are evolving, and S&P Global Market Intelligence explores implications for other parts of the world.
How will financial institutions respond to changing regulations and policies on net-zero GHG commitments, stakeholder pressures and competing energy technologies?
Global harmonization of Islamic finance principles could smooth the process for issuing sustainable sukuk to fund climate change mitigation measures in core markets.
Heightened exposure to climate change, as well as government initiatives and company pledges, will fuel sustainable, mostly green, bond issuances in the Middle East.
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: Atul Arya, Rameez Ali, Giacomo Bareato, Kurt Burger, Meha Dave, Alexandra Dimitrijevic, Carla Donaghey, Jaspreet Duhra, Ken Fredman, Lotte Griek, Hannah Kidd, Roman Kramarchuk, Camille McManus, Stephanie Oxford, Mark Pengelly, Priya Suvarna, Cat VanVliet, Nora Wittstruck.
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