What it is
S&P Global Trucost provides carbon, water, waste, and natural capital data covering over 15,000 companies worldwide. Its physical risk analytics assess exposure to climate hazards (floods, heat stress, water stress, hurricanes) under multiple warming scenarios. Trucost data is integrated into S&P Dow Jones Indices and used by institutional investors for portfolio-level climate risk assessment.
Why we picked this
Climate risk has two dimensions: transition risk (policy, technology, market shifts) and physical risk (actual climate impacts on assets). Trucost covers both. Its natural capital valuation methodology puts a dollar figure on environmental externalities, revealing the true cost of business operations that corporate financial statements omit. This data is increasingly embedded in mainstream financial analysis.
Key takeaways
- Trucost estimates that companies worldwide generate over $4.7 trillion in annual environmental costs (pollution, water use, land use) that are not reflected in financial statements.
- Physical risk analytics cover seven climate hazards across multiple warming scenarios (1.5C, 2C, 3C, 4C) at asset-level geographic precision.
- Trucost data powers the S&P Carbon Efficient Index series, used as benchmarks by sovereign wealth funds and pension systems worldwide.