Climate RiskGauge leverages S&P Global Trucost’s database of company-specific Scope 1 and 2 emission details and company pledges to transition from Trucost’s Paris alignment datasets to provide a granular assessment for 45,000+ public companies (financial and non-financial) and several million private companies across industries.2
The model’s primary outputs include the main financial impacts (i.e., additional costs, revenues, total liabilities and change in earnings) and the future market capitalization of each company in the chosen sector, scenario and year. The current and future market capitalization for private companies leverages standard market-valuation techniques.
Future market capitalization is then used within an enhanced Merton approach to determine the change in creditworthiness of those companies.
It is delivered via S&P Capital IQ/Market Intelligence Excel® templates which help automate financial spreading and provide ease in integration, as these are not dependent on any software or technology.