Ripple Effect: How Value Chains Compound Sector Exposures To Physical Climate Risks

Please join S&P Global Ratings' analysts for a live webinar discussing new analysis that explores sector exposures to physical climate hazards embedded in their value chains – and how these exposures can translate into material financial and operational impacts on companies. We will dive into this cross-sector research, with a particular focus on how these dynamics might play out for the autos sector.

Key discussion points:

• New research from S&P Global Ratings finds that companies in all corporate sectors may be underestimating their exposures to physical climate risks (and their potential operational and financial impacts) if they fail to consider value-chain exposures in their risk analyses. 
• All sectors inherit at least some physical climate risk exposures from their value chains, including those with relatively limited direct risk exposure - but most exposed are those that rely on climate sensitive upstream sectors, such as Agribusiness, Consumer Food, and Autos.
• Value chain physical climate risk exposures can materialize in credit impacts through three primary channels: business disruption or downtime, increased input and production costs, and costs of adaptation and resilience investments. However, whether these risks have material credit impacts depends on many issuer specificities.

Speakers: 
Paul Munday, Sustainability Research, Global Adaptation and Resilience Specialist
Bruce Thomson, Sustainability Research, Global Social Specialist
Vittoria Ferraris, Automotives Sector Lead, EMEA, Corporate Ratings

Moderator: 
Gregg Lemos-Stein, Chief Analytical Officer, Corporates