Data and analytics provider S&P Global Sustainable1 has launched a new dataset, Nature & Biodiversity Risk, which enables companies and investors to assess the nature-related risks and dependencies of over 17,000 firms and 1.6 million assets. The dataset can be accessed through S&P Capital IQ Pro and provides several new nature-related risk metrics, including a dependency score and an ecosystem footprint measure. The methodology for analysing companies’ dependencies and impacts on nature is called the Nature Risk Profile, which was launched by S&P Global Sustainable1 and the UN Environment Programme earlier this year. The dependency score considers the level of reliance a business’s direct operations have on 21 different ecosystem services and the expected resilience risk of the ecosystem providing these services where the company is located. The Ecosystem Footprint measures a business’s direct operational impact on nature and biodiversity by combining three areas of analysis: land area impacted by the company, degree of ecosystem degradation, and significance of the ecosystem impacted. Steve Bullock, Global Head of Research and Methodology, S&P Global Sustainable1, emphasised the importance of greater transparency on nature-related risks and opportunities. “Our research shows that 85% of the world’s largest companies have a significant dependency on nature, indicating the critical importance of greater transparency for market participants on nature-related risks and opportunities,” he said. The dataset is intended to provide market participants with a greater understanding of their nature-related risks and opportunities and aligns with the recommendations of the Taskforce on Nature-related Financial Disclosures.
Sustainable1 Unveils Nature, Biodiversity Risk Dataset
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