Daily Update — June 5, 2025
Deep Dive Into Methane; Shipping Industry Uncertainties; and the S&P 500 Economic Moat Index
Today is Thursday, June 5, 2025, and here’s your curated selection of Essential Intelligence on global markets from S&P Global. Subscribe to be notified of each new Daily Update.
Energy Transition & Sustainability
Listen: How cutting methane emissions became energy sector's big climate opportunity
In this episode of the “All Things Sustainable” podcast, hosts Esther Whieldon and Lindsey Hall take a deep dive into methane. After CO2, methane is the greenhouse gas that contributes most to global warming. It is also far more potent than CO2. The fossil fuel sector is responsible for nearly one-third of global methane emissions from human activity, according to the International Energy Agency.
This episode explores how recent advancements in monitoring and measuring have helped energy companies understand and address methane emissions. The hosts look at why these emissions matter and how curbing methane leaks in oil and gas operations is economically and technically feasible, allowing companies to make progress on near-term climate goals.
Global Trade
Tariffs, environmental uncertainty dampen investment in shipping
Shifting trade and environmental policies are creating significant uncertainty in the shipping industry and hindering investment efforts as companies aim to decarbonize. Lasse Kristoffersen, CEO of car carrier Wallenius Wilhelmsen, recently highlighted this issue, pointing out that the simultaneous energy transition and upheaval of established global trade rules, particularly those influenced by the US, are leading to new trade patterns.
Kristoffersen said the uncertainty is causing inaction among shipping companies. As a result, the industry must adapt to this new norm of unpredictability to foster investment and progress in decarbonization efforts.
Economy
One Year Live: The S&P 500 Economic Moat Index Outperforms Its Benchmark
The concept of an economic moat, popularized by renowned investor Warren Buffett, refers to a company's sustainable competitive advantage. On April 15, 2024, S&P Dow Jones Indices introduced a systematic approach to identify and track companies with such advantages through the launch of the S&P 500® Economic Moat Index. This innovative index has outpaced the S&P 500 since going live and year to date, and provides better downside protection.
As the index celebrates its one-year anniversary, S&P Dow Jones Indices explored its short- and long-term performance, evaluated its defensive characteristics during historical market downturns and assessed its current profitability. For a more in-depth understanding, the team published a detailed paper on the index's methodology and performance following its launch in 2024.
In case you missed it
- Germany's stock market outpaced many global peers through May as a bullish outlook for the country's fiscal expansion offset fears of economic pressure from global trade tensions.
- Japanese city gas utilities expect natural gas as well as carbon capture, utilization and storage to become a larger part of their gas supply in 2050, as the government has designated gas as "an important energy source," even after achieving carbon neutrality.
- Nigeria's Lagos State began Africa's largest clean cookstoves project on June 2, which is expected to generate carbon credits under the credit mechanism of the Paris Agreement on climate change.
Upcoming events
- Global Credit Conditions — Tariff And Policy Update | June 6 (Webinar)
- Unlocking Opportunities: Global Metals Trends and Argentina's Mining Landscape | June 10 (Webinar)
- Simplifying ISDA Notices - Bringing a Modern Practice to a Critical Process | June 10 (Webinar)