Sustainability Insights

Sustainable finance is not only about financing activities and investments that are already compatible with a low-carbon, climate resilient future, considered "green," and aligned with the Paris Agreement.

Although the volume of clothes produced and sold globally is increasing alongside its environmental impact, the apparel sector's carbon emissions, waste, and pollution risks remain largely unpriced.

At the same time, the financial impact of environmental risks on the sector and our ratings has so far been negligible, reflecting a lack of stringent environmental regulations and little change in consumers' buying behavior.

The primary credit transmission channels for food safety issues are operational disruption and adaptation, regulation and litigation, and consumer awareness.

Food safety vulnerabilities can occur at all stages of the value chain.

When food safety incidents arise, the negative credit impacts will depend on issuer circumstances and responses, as well as the nature of incidents.

Climate change is a megatrend that can have material impacts on the creditworthiness of issuers and debt instruments.

In our latest white paper, S&P Global Ratings presents plausible long-term scenarios to help illustrate the potential impacts of climate change on credit transmission channels—and ultimately on creditworthiness.