- New research using this dataset shows that 85% of the
world's largest companies have a significant dependency on nature
across their direct operations
- New dataset includes dependency scores, describing the level
of risk associated with a company's reliance on 21 different
ecosystem services, and the ecosystem footprint for companies, a
new metric measuring operational impact on nature and
biodiversity
- Companies, investors and other stakeholders can use this
dataset to understand their impact and dependency on the natural
world and to develop strategies to create more resilience with
respect to the ecosystems they depend on
- This dataset has been designed to help companies and
financial institutions align with the recommendations of the
Taskforce on Nature-related Financial Disclosures (TNFD)
NEW
YORK and LONDON,
May 10,
2023 /PRNewswire/ -- S&P Global Sustainable1
has today launched Nature & Biodiversity Risk, a new dataset
assessing nature-related impacts and dependencies across a
company's direct operations that can be applied at the asset,
company and portfolio level. This new dataset will support
companies, investors and entities as they seek to understand,
manage and mitigate exposure of corporates and portfolios to nature
related risks and impacts.
Nature & Biodiversity Risk can be accessed through S&P
Capital IQ Pro and covers over 17,000 companies and over 1.6
million assets and provides a number of new nature-related risk
metrics including a dependency score and ecosystem footprint
measure enabling greater understanding of a company or asset's
dependency and impact on nature. The dataset applies the Nature
Risk Profile, a new methodology for analyzing companies' impacts
and dependencies on nature, launched by S&P Global Sustainable1
and the UN Environment Programme (UNEP) in January this year.
Thomas Yagel, Chief Operating
and Product Officer, S&P Global Sustainable1 said:
"From the launch of the Taskforce on Nature Related Financial
Disclosures (TNFD) in 2021 to the significant commitments made at
COP15, there is an increasing demand
from companies and investors to be able to quantify both their
dependency on nature and the impact of their operations on
location-specific ecosystems."
The dependency score* considers the level of reliance that a
business' direct operations have on 21 different ecosystem
services, as well as the expected resilience risk of the ecosystem
providing these services, where these businesses are operating
around the world. The dependency score is on a scale from 0 to 1.0
(where 0 represents no dependency risk and 1.0 represents very high
dependency risk).
The Ecosystem Footprint** measures a business' direct
operational impact on nature and biodiversity. This metric combines
three key areas of analysis: the areas of land impacted by the
company (land area), the degree to which the location-specific
ecosystem integrity is reduced (ecosystem degradation) and the
significance of the location-specific ecosystem impacted (ecosystem
significance).
Steve Bullock, Global Head of
Research and Methodology, S&P Global Sustainable1 said:
"Our research shows that 85% of the world's largest companies
have a significant dependency on nature, indicating the critical
importance of greater transparency for market participants on
nature-related risks and opportunities. This new dataset signals a
maturation of the conversation on nature and provides clear metrics
quantifying the nature related dependency and impact of over 1.6
million global real assets."
Applying this new dataset to the S&P 1200, the world's
largest public companies, our analysis shows that:
- 85% of the world's largest companies have a significant
dependency* on nature across their direct operations.
- 46% of the world's largest companies have at least one asset
located in a Key Biodiversity Area (KBA)*** that could be exposed
to future reputational and regulatory risks.
- S&P 1200 companies used an estimated 22 million hectares of
land for their direct operations in 2021 to generate USD 28.9 trillion revenue.
-
- Expressed as an ecosystem footprint, this is equivalent to
fully degrading 2.2 million hectares of the most pristine and
significant ecosystems globally, such as the most intact and
biodiverse parts of the Amazon or Sumatran rainforests.
The dataset can be leveraged by market participants to
understand their nature-related risks and more transparent
alignment with Taskforce on Nature-related Financial Disclosures
(TNFD) recommendations. The dataset is aligned with the LEAP risk
and opportunity assessment approach, as recommended by the
TNFD.
Dependency score methodology note:
*The dependency score considers the level of reliance that a
business has on 21 different ecosystem services, as well as the
expected resilience risk of the ecosystem providing these services,
where these businesses are operating around the world. Significant
dependency is signified by companies that have a dependency score
over 0.6 (where 0 represents no dependency risk and 1.0 represents
very high dependency risk).
Ecosystem footprint methodology note:
** In order to provide a decision-useful metric that enables
comparison between business operations, land area, ecosystem
integrity degradation and ecosystem significance are brought
together to calculate the equivalent impact on the most significant
areas globally in terms of biodiversity conservation and ecosystem
services provision. This produces an Ecosystem Footprint expressed
as the equivalent number of hectares in the most globally
significant ecosystems that would be fully degraded by the
company's operations.
Key Biodiversity Area note:
***KBAs are sites contributing significantly to the global
persistence of biodiversity (International Union for Conservation
of Nature [IUCN], 2016). KBAs are identified at the national,
sub-national or regional level by local stakeholders based on
standardized scientific criteria and thresholds.
About S&P Global Sustainable1
S&P
Global Sustainable1 is the central source for sustainability
intelligence from S&P Global. Sustainable1 matches
customers with the ESG products, insights and
solutions from across S&P Global's divisions to
help meet their unique needs. Our comprehensive coverage across
global markets combined with in-depth ESG intelligence
provides financial institutions, corporations and governments an
unmatched level of clarity and confidence to successfully navigate
the transition to a sustainable future. Our data and well-informed
point of view on critical topics like energy transition, climate
resilience, positive impact and sustainable finance allow us to go
deep on the details that define the big picture so customers can
make decisions with conviction.
To learn more, please visit: www.spglobal.com/esg
About S&P Global
S&P Global
(NYSE: SPGI) provides essential intelligence. We
enable governments, businesses and individuals with the right data,
expertise and connected technology so that they can make decisions
with conviction. From helping our customers assess new investments
to guiding them through ESG and energy transition
across supply chains, we unlock new opportunities, solve challenges
and accelerate progress for the world.
We are widely sought after by many of the world's leading
organizations to provide credit ratings, benchmarks, analytics and
workflow solutions in the global capital, commodity and automotive
markets. With every one of our offerings, we help the world's
leading organizations plan for tomorrow, today.
Media Contact
Sarah Whybrow
Global Director of ESG Communications, S&P Global
Sustainable1
sarah.whybrow@spglobal.com
+447929 711556
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SOURCE S&P Global Sustainable1