Overview: 15Task Force on Climate-related Financial Disclosures
S&P Global’s 2023 TCFD Report
In 2023, S&P Global released its fifth 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.
S&P Global continues to strive to deliver on its strategic priority to demonstrate active leadership in ESG disclosure through advocacy, best-in-class S&P Global disclosure, and meaningful progress against our stated environmental sustainability targets.
As with S&P Global’s prior TCFD reports, the assessments for S&P Global’s 2023 report were informed by Sustainable1 ESG Analysis, part of S&P Global. Sustainable1 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.
The full report including S&P Global’s TCFD scenario analyses is available at spglobal.com
TCFD Disclosure
Governance
- 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.
Strategy
- 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 Operational 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 largely has low exposure related to carbon pricing risk. The potential emergence of increasing taxes on fuel, GHG emissions, or participation in emissions trading schemes could increase the Company’s carbon pricing risk. S&P Global assesses its future risk from carbon pricing using three scenarios, each aligned to a different climate policy that limits the increase in global temperatures by varying degrees.
- The Company has explored a variety of metrics and targets to provide transparency into the previously hidden cost of carbon emissions from the Company’s operations and discloses its Adjusted Diluted Earnings per Share (EPS) Further Adjusted for the Estimated Cost of Carbon in its annual TCFD report.
Future Opportunities from ESG and Climate-related Product Development
2022 was the one-year anniversary of S&P Global Sustainable1. Sustainable1 brings together S&P Global’s full suite of sustainability solutions to help customers assess and understand their business risks, opportunities, and impacts related to sustainability.
In the first year of the merger with IHS Markit, the combined Company successfully leveraged and integrated capabilities to better serve our customers and also made investments to advance sustainability in our Company. We also acquired Shades of Green from CICERO, Norway’s foremost institute for interdisciplinary climate research.
See page 28 for Shades of Green second-party opinions
S&P Global’s merger with IHS Markit further strengthens its ability to assist clients in the transition to a low-carbon economy and improve their integration of sustainability.