15Task Force on Climate-related Financial Disclosures
In 2022, S&P Global released its fourth report in response to the recommendations from the Task Force on Climate-related Financial Disclosures (TCFD), which demonstrates the Company’s position in each of the prescribed financial disclosure areas of governance, strategy, risk management, and metrics and targets. The report describes the Company’s significant progress in integrating climate risks and opportunities into its 2021 business strategy.
As with S&P Global’s prior TCFD reports, the assessments for S&P Global’s 2022 report were informed by Trucost ESG Analysis, part of S&P Global. Trucost ESG Analysis takes a robust, data-driven approach to the TCFD assessment. The approach included stakeholder interviews and surveys, as well as quantifying the financial and non-financial impacts associated with a low-carbon transition.
S&P Global’s 2022 TCFD Report
TCFD Climate-related Financial Disclosures
- Led by S&P Global’s Chief Executive Officer, the Company’s Board and its various Committees ensure active and ongoing oversight of the Company’s management of ESG-related risk 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.
- 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
- Third-Party Risk Management (TPRM) and Procurement
- Metrics & Targets
- S&P Global assesses its future risk from carbon pricing under three different scenarios that showcase a range of policy intervention from very low (4ºC), to significant (2ºC), to aggressive (1.5ºC). The Company has explored a variety of metrics and targets, including Adjusted Diluted Earnings per Share (EPS) further Adjusted for the Estimated Cost of Carbon which provides transparency into the previously hidden cost of carbon emissions from operations.
Future Opportunities from ESG and Climate-related Product Development
2021 was a momentous year with the launch of S&P Global Sustainable1, consolidating the management of the Company’s cross-divisional ESG assets and ESG product roadmap with an integrated ESG leadership group and organizational structure designed to scale quickly and better serve the evolving needs of customers. The Company further expanded its ESG data and analytics capabilities through the acquisition of The Climate Service and an investment in Novata, a new public benefit corporation and technology platform that provides the private markets ecosystem with ESG measurement, data collection, and benchmarking.
Projected Revenues from Ongoing Development of ESG Products
S&P Global’s recent merger with IHS Markit further strengthens its ability to meet the needs of customers. S&P Global is projecting a ﬁve-year revenue compound annual growth rate of approximately 46% from products and solutions that assist its clients in the transition to a low-carbon economy and improve their integration of sustainability.