S&P Global Market Intelligence’s Climate RiskGauge is a market-valuation approach that estimates the financial impact of climate transition and physical risk, looking at a compact set of financials as well as a firm’s implied market capitalization, in order to arrive to the estimation of the credit score change over a given time-horizon.
Overview
This tool can be employed to support a variety of use cases, including:
- The Task Force on Climate-related Financial Disclosures (“TCFD”) recommendations on forward-looking scenario analysis.
- Climate-related stress testing that regulators are increasingly expecting from financial institutions, at both, the single counterparty, and portfolio levels.
- Incorporation of climate-related risks into credit-related policies, procedures, strategies, and overall risk appetite of the financial institution.
- Climate risk-adjusted valuation of companies for the purpose of capital markets issuances, mergers and acquisitions, and other types of corporate financing and investment activities.
Features
Climate RiskGauge leverages S&P Global Trucost’s database of company-specific Scope 1 and 2, with the potential to include Scope 3 carbon emissions as well as the forward-looking data on both, physical and transition risk from the Network for Greening the Financial System (“NGFS”).
The solution provides a granular, company-specific assessment for over 1 million public and private companies across the globe.
S&P Global Market Intelligence. We provide essential insights for our clients through powerful business intelligence solutions that combine comprehensive data, actionable analytics
S&P Global Market Intelligence. We provide essential insights for our clients through powerful business intelligence solutions that combine comprehensive data, actionable analytics
