S&P Global Sustainability Quarterly — Q1 2026: Balancing energy security and sustainability

Sustainability has become a story of how stakeholders balance near-term priorities with long-term realities. The war in the Middle East has continued to unfold in the first quarter of 2026, affecting energy, supply chains and financial markets globally. Companies and countries are weighing immediate needs such as energy security, affordability and availability against longer-term priorities such as sustainability and decarbonization. The war is altering the energy calculus, putting energy security firmly in the spotlight. But this could reinforce some countries’ renewable energy rollout as oil and gas supply chains unravel and prices soar.

This collection of research by S&P Global Sustainable1 offers insight into how markets are navigating competing priorities. We expect a robust trajectory for clean technology in 2026, even as some markets roll back sustainability policies. We explore how the EU is revising its regulations to balance sustainability and competitiveness. Our research shows that financial institutions are making progress on decarbonization and Scope 3 emissions disclosure, even as the outlook for sustainable bond markets appears neutral in 2026. We also explore how some companies are responding to mounting physical climate change risks with adaptation efforts.

Emerging market manufacturing input prices rise steeply amid Middle East war

Emerging market economies recorded a sharp upswing in manufacturing costs in March as the war in the Middle East led to increased prices for fuel, transport, commodities and US dollar-denominated imports. The seasonally adjusted Emerging Markets Manufacturing PMI Input Prices Index rose sharply in the month, climbing to its highest level since June 2022, with marked accelerations observed in parts of Latin America, Southeast Asia and central Europe.