FINANCIAL EXPOSURE
What’s the financial exposure of company assets to climate risk?
Get the detail: Quantifying the financial costs of climate change physical risks for companies
Select Physical Climate Hazard
All Hazards
- All Hazards
- Coastal Flood
- Drought
- Extreme Heat
- Fluvial Flood
- Tropical Cyclone
- Water Stress
- Wildfire
Data as of February 2023. Chart based on S&P Global Physical Risk Exposure Scores and Financial Impact dataset, and weighted average financial impact on assets owned by companies in the S&P Global 1200 by sector (%). Financial impact is first calculated at the asset level and represents the sum of financial costs arising from exposure to climate hazards for an asset, expressed as a percentage of the typical replacement value for a given asset type. Financial impact at the company level is then calculated as the weighted average of the asset-level financial impact for all known assets owned by a company and its subsidiaries. Financial impact at the index level is calculated as the market capitalization-weighted average of financial impact of all companies in the index. The climate change scenario used in this analysis, known as SSP3-7.0, is characterized by limited mitigation where total greenhouse gas emissions double by 2100 and global average temperatures rise by 2.8 degrees C to 4.6 degrees C by 2100. Negative financial impact (%) indicates that exposure to a climate physical hazard is projected to reduce over time at the location of the company's assets. For example, changes in precipitation patterns due to climate change can drive increasing water stress in some regions and decreasing water stress in other regions.
Source: S&P Global Sustainable1
