Launched in 2011, our Finance for Change Initiative helps investors, credit rating agencies, and country risk analysts identify, quantify, and integrate environmental risks into their analysis and decision-making.
The tightening global competition for the planet’s resources is becoming an ever more significant factor of national economic performance, yet its influence is still underestimated by most country risk analysts. With more than $40 trillion of sovereign debt in global markets at any given time, it is vitally important to understand how resource trends can affect nations’ economic health and creditworthiness in the 21st century.
Our offerings for the finance sector include:
Sovereign Bond Carbon Disclosure
In collaboration with South Pole Group, we provide carbon disclosure and climate impact assessments to enable asset owners, fund managers, and banks to assess and understand the impact of climate change on their sovereign bond portfolios.
Transition Risk Index (Carbon Intensity and Stranded Assets)
Global Footprint Network’s framework for evaluating the exposure of national economies to transitioning to a low-carbon future as required by the 2016 Paris climate agreement offers a quantitative tool for investment analysis.
Food Price Shock Risk Index
Research shows that the growing imbalance between demand for food and the capacity to supply it will lead to higher and more volatile food commodity prices, and a higher likelihood of price shocks. Our Food Price Shock Index ranks the short term trade-related risk exposure on 110 countries in the event of a large food price shock in terms of impact on Gross Domestic Product (GDP), Consumer Price Index (CPI) and current account balance.
National Footprint and Biocapacity Accounts and Trade Data
The National Footprint and Biocapacity Accounts, one of the world’s most extensively used natural resource frameworks, calculate a country’s demand for natural resources and services and the ability of a country’s ecosystems to provide them. Our data packages provide an ecological balance sheet for more than 230 countries and territories, with time trends. Data from our Bilateral Trade Analysis presents resource flows, including final output for 57 sectors for 129 countries and regions, as well as the size and origin of trade flows.
Our groundbreaking research provides insights to investors on complex, emerging environmental risk at the country and sector level.
Contact us to learn more about our Finance for Change Initiative.