ESG Insider: The global market’s hidden environmental costs

ESG Insider: The global market’s hidden environmental costs


The world’s publicly listed companies cause trillions of dollars in environmental costs that are not accounted for each year, according to new research from S&P Global Sustainable1 that aims to put a dollar figure on the most significant negative externalities in the global market.


The report, Unpriced Environmental Costs: The Top Externalities of the Global Market , estimates that the hidden environmental costs arising from the direct operations of listed companies totaled at least $3.71 trillion in 2021 — equal to more than 4% of global GDP that year. Greenhouse gas emissions and air pollution were responsible for the majority of unpriced environmental costs.


In particular, the research identifies the 100 largest environmental damage “hotspots” that are having the largest impact on society, such as the manufacture of cement in Eastern Asia or coal-based electricity generation in Northern America.


In this week’s newsletter, we also feature the second-quarter 2024 edition of the S&P Global Sustainability Quarterly . This collection of research from across S&P Global explores the major climate risks companies face and the opportunities a green transition presents — what this edition refers to as the great climate balancing act.


In addition, we bring you a deep dive into the expansion of solar installations in the US and the new types of tools banks are using to finance renewable projects. We also look at Japan’s proposal to issue carbon credits related to Philippine agriculture projects, as well as S&P Global Sustainable1’s monthly feature on sustainability-related regulatory developments around the world.


In this week’s ESG Insider podcast, we discuss how the landscape for financing nature-related projects is evolving and what steps industry can take to become more nature friendly.

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Chart of the Week


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US solar installations rise 21% YOY in Q1 2024, pushing fleet past 100 GW?

Solar installations in the US increased by 21% in the first quarter of 2024 year over year as companies took advantage of the Inflation Reduction Act and its incentives, and the number of solar projects is projected to rise to 10 million by 2030 from five million currently, S&P Global Market Intelligence reports.

Read More >>

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Japan, Philippines to develop Article 6.2 carbon credits from agriculture projects

The Japanese government published a draft methodology for issuing carbon credits from projects that improve water management and cut greenhouse gas emissions in Philippine rice paddy fields, using a UN-backed mechanism that allows two countries to sign bilateral agreements on emission reductions, S&P Global Commodity Insights reports.?

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ESG Regulatory Tracker — May 2024

S&P Global Sustainable1’s monthly regulatory tracker looks at the International Sustainability Standards Board’s new jurisdictional guide on adoption of its disclosure standards, the results of the US Federal Reserve’s climate stress test for the largest US banks and the publication of Hong Kong’s sustainable finance taxonomy, among other topics.

Read More >>

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Banks use tax credit bridge loans to fund renewables as private debt steps back

Banks are using new types of tools to finance renewable energy projects as they regain a share of the debt dealmaking flow lost to private credit funds, S&P Global Commodity Insights reports.?

Read More >>


Podcast


ESG Insider Podcast

How to finance a nature-positive future and transform industries In this episode of the ESG Insider podcast, our guests discuss business dependencies and impacts on nature, how to unlock more financing for nature and how to use environmentally friendly technologies to transform pollution-heavy industries. We speak to Carter Ingram, Managing Director at nature and climate change investment and advisory firm Pollination Group, and Tom Chi, Founding Partner of At One Ventures, a venture capital firm based in San Franscisco. >>Listen on Spotify ?or Apple Podcasts

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Upcoming Events

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Towards a new future

S&P Global Sustainable1, Capitals Coalition, July 4 Paris, France


Navigating Climate reporting: Aligning with CSRD and Addressing Materiality Challenges

S&P Global Market Intelligence, July 10, Online


How much carbon is hidden in your investment portfolios?

S&P Global Mobility, Aug. 1, Online


Climate Week NYC

Climate Group, Sept. 22-29, New York, US


Sustainable Development Impact Meetings

World Economic Forum, Sept. 23-27, New York, US


Sustainability Europe 2024

Reuters Events, Sept. 30-Oct. 1, London, UK


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Raiyan Mahmud (Rafi)

Communication and Public Relationship Specialist | Python lover | Data science loading

4 个月

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