15Task Force on Climate-related Financial Disclosures
In 2020, S&P Global continued its ongoing assessment of climate-related risks and opportunities in the context of the recommendations from the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD).
The assessments for S&P Global’s 2020 and 2019 reports were informed by Trucost ESG Analysis, part of S&P Global. Trucost ESG Analysis took a robust, data-driven approach to the TCFD assessment.
S&P Global’s 2020 TCFD Report
- S&P Global’s Board of Directors (the Board) views oversight and effective management of environmental, social and governance (ESG) related risks and opportunities as essential to the Company’s ability to execute its strategy and achieve long-term sustainable growth. As such, the full Board receives regular updates on a variety of ESG topics as well as ongoing discussions and committee reports throughout the year.
- 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.
- Risk Management
- S&P Global leverages multiple Corporate Risk Management programs to manage climate-related risks, including:
- Enterprise Risk Management (ERM)
- Business Continuity Management (BCM)
- IT Disaster Recovery
- Metrics & Targets
- Current climate-related risks remain low in the short- to mid-term with the potential to increase long-term. S&P Global has already begun aligning its strategy to mitigate those risks and has introduced new metrics and targets, including:
- Adjusted Diluted Earnings per Share (EPS) further Adjusted for the Estimated Cost of Carbon
Future Opportunities from ESG and Climate-related Product Development
S&P Global has developed a suite of products across its underlying business units that will help our clients mitigate challenges from climate change and drive opportunities as the world transitions to a low-carbon economy. The Company will continue to invest in innovative solutions that power sustainable markets of the future.
The Company enhanced the vital ESG intelligence it provides by:
- Acquiring RobecoSAM’s ESG ratings business, which publishes the prominent SAM Corporate Sustainability Assessment
- Expanding climate solutions from Trucost, part of S&P Global, to include analytics for TCFD reporting, enabling entities to stress test resilience to physical and transitional climate risks
Projected Revenues from Ongoing Development of ESG Products
S&P Global is projecting a 5-year revenue compound annual growth rate of approximately 44% from products and solutions that assist its clients in the transition to a low-carbon economy and improve their integration of sustainability.
Projected Revenue from ESG* Products
(dollars in millions)
* S&P Global considers ESG revenue to be synonymous with TCFD-related revenue as climate/environmental revenue is bundled in the broader ESG offerings