S&P Global Ratings’ Michael Wilkins discusses the effects of enhanced disclosure of climate risks and opportunities for Investment Europe 

As evidenced by natural catastrophes – such as earthquakes, storms and floods – environmental and climate risk is non-diversifiable and systemic. With this in mind, the integration of environmental and climate (E&C) concerns into corporate credit ratings is of rising importance to investors, lenders and insurers.

But market participants still require comparable and consistent climate-related information to make informed business decisions. Writing for Investment Europe, Michael Wilkins, Managing Director, Environmental and Climate Risk Research, S&P Global Ratings, says: “At present, risks and opportunities related to E&C factors are incorporated into credit ratings when they represent a material impact to the creditworthiness of an issuer. In order for these factors to be seamlessly integrated, comprehensive and reliable disclosure is essential.”

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