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Sustainability InFocus February 2025
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The Big Picture 2025: Sustainability
As the world confronts the escalating impacts of climate change, sustainability has become a priority across industries, with the insurance sector at the forefront of adapting to evolving risks while promoting a sustainable future. Climate change is causing more frequent and severe natural disasters, with insured losses exceeding $100 billion globally for three consecutive years. Events such as floods and wildfires now represent a significant share of these losses, surpassing traditional risks like hurricanes.
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Latest Research & Insights
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Load growth focuses power sector on residential rates, interconnection clarity
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As datacenter-driven load growth increasingly takes shape, US utilities and power providers in 2025 will aim to take advantage of those opportunities in ways that protect residential customers. A related priority is to wring clarity from regulators on interconnection and supply deals with tech companies, after IPPs' stock prices ballooned in 2024 due to AI's insatiable power needs.
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Wells Fargo quits Net-Zero Banking Alliance; Texas anti-ESG probe
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Wells Fargo & Co. became the third US bank to withdraw in 2024 from the Net-Zero Banking Alliance (NZBA), a United Nations-convened coalition that has spurred litigation and political pressure from US states supportive of the fossil fuel industry. As per a Dec. 20 news release, it was said to be in line with the state's review of the bank as a "potential boycotter of energy companies" prohibited under Texas law.
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S&P Global's Top 10 Sustainability Trends to Watch in 2025
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In 2025, we reflect on the megatrends that will impact sustainability strategies. What is happening in the world that will affect sustainability? This shift reflects the sea changes we’re witnessing in sustainability conversations around the globe. T he question is how organizations can advance their sustainability strategies while navigating an increasingly fragmented world where the rules of engagement are changing.
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Navigating step changes in ESG regulation for financial institutions
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Jurisdictions at the local, national and international level have proposed and adopted sustainability-related policies at an accelerating pace over the past several years. Measures like the EU’s Corporate Sustainability Reporting Directive (CSRD) and the International Sustainability Standards Board (ISSB) mean that few investors, no matter where they are domiciled, can afford to ignore these potentially sweeping changes. Read More >
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Essential Sustainability Intelligence
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Sustainability Starter Pack Discover how you can develop a data rich sustainability report backed by quantitative and qualitative metrics. Find out more S&P Global Physical Risk Assess the financial impact of climate-related risks and embed these risks into global decision-making.
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Top Stories: Environmental, Social, Governance
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The Mounting Cost of Climate for Insurers
Read more
Indian energy transition targets more renewables, low-emission coal Read more
US battery storage systems are evolving into lower fire-risk technology Read more |
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Top Stories: Industry Updates
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Americas
- January 31: The State of New York has reintroduced two bills, Senate Bill 3456 and Senate Bill 3697, requiring large companies to disclose climate risks and scope 1, 2, and 3 emissions. Scope 1 and 2 reporting starts in 2027, with scope 3 in 2028. The framework aligns with global standards to reduce reporting duplication.
APMEA
- February 24: The Hong Kong MPFA issued new ESG guidelines, requiring major fund managers to enhance transparency and align disclosures by September 30. The move supports greener capital markets and sustainability efforts.
Europe
- January 30: The Prudential Regulation Authority (PRA)'s Climate Change Adoption Report stresses better risk management tools, standardized data, and climate risk quantification. A consultation paper in late 2025 will update supervisory expectations. Firms are encouraged to participate to strengthen financial resilience.
- February 1: At the "Risks in BaFin’s Focus" conference, Germany’s financial regulatory authority, Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin), urged financial institutions to address climate risks, citing $150 billion in losses from the LA fires. It stressed better data integration and risk management for banks and insurers.
- February 4: Investors managing a combined €6.6 trillion in assets urged the European Commission to uphold the sustainable finance framework ahead of the Omnibus package. They called for policy stability, clearer guidance, and digital solutions to ease reporting.
- February 13: JPMorgan Chase & Co. a new climate report in response to client demand for information on climate issues. The debut report, “Navigating the New Climate Era: Building Intuition for Strategic Decision-Making,” links climate change, macro trends, and policy to guide business and investment decisions.
- February 27: The People’s Pension, one of the UK’s largest pension funds, £28 billion from State Street, reallocating £20 billion to Amundi and £8 billion to Invesco, to encourage responsible investment. The move emphasizes sustainability, active stewardship, and long-term value creation.
Events
- February 25: At the Sustainability Leaders Forum “Quantifying Climate Risk: From Data to Decision”, jointly hosted by S&P Global Market Intelligence and Sustainable1 held in Jakarta, experts discussed using data to quantify financed emissions and climate risks for banks. The event highlighted stress testing, scenario analysis, and compliance with upcoming sustainability reporting rules.
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Events, Webinars and Podcasts
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You are receiving this email as you previously opted into Sustainability InFocus, a monthly newsletter covering the latest news, insights, trends, and commentary into ESG issues that impact business decisions across S&P Global Market Intelligence. To unsubscribe from Sustainability InFocus, click here.
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