S&P Global released a climate disclosure report Wednesday that follows the recommendations of the Financial Stability Board's Task Force on Climate-related Financial Disclosures.
S&P Global described its climate disclosure report as an important step in examining and quantifying climate-related risks and opportunities. "The transition to a low-carbon economy is vital for a sustainable future," S&P Global Chief Financial Officer Ewout Steenbergen said in a statement. "In order to make progress, it is necessary that we understand the material financial implications of climate change on businesses and investments. Our inaugural TCFD report is an important step on our journey to strengthen strategic decision making with long term, resilient operations in mind."
The report by S&P Global division Trucost ESG Analysis assessed four business aspects — governance, strategy, risk management, and metrics and targets — in terms of climate-related risks and opportunities. The report concluded that current climate-related risks are low in the short- to mid-term, but could increase in the long-term, and that current climate-related opportunities are available in the short- to mid-term, and benefits could increase significantly in the long-term.
S&P Global said it has begun aligning its strategy to support mitigation of climate-related risks and realize future opportunities. Since doing an initial assessment in March, S&P Global launched a task force to support ongoing monitoring of companywide climate-related risks.
Separately, House Ways and Means Chairman Richard E. Neal, D-Mass., announced Wednesday that the committee will hold a hearing May 15 on the economic and health consequences of climate change.
