Leading global carbon footprinting provider South Pole Group announced an agreement with Global Footprint Network, the global expert in natural resource accounting, to strengthen their respective offerings by collaborating on comprehensive climate and carbon impact assessment services for sovereign bond investors.
The announcement follows an increasing awareness among investors about the climate change impact of their assets, and their interest in reducing related investment risk. Growth assets, such as sovereign bonds, are among some of the most sensitive to climate risks, especially in emerging markets. With more than $40 trillion of sovereign debt in global markets at any given time, the imperative of understanding the effects of resource trends on nation's' economic health and creditworthiness has risen up the agenda. France is the first country to require institutional investors to disclose the carbon exposure of their portfolios, starting in 2016.
"The tightening global competition for the planet's resources is becoming an ever more significant factor of national economic performance, yet its influence is still underestimated by most country risk analysts," says Susan Burns, Co-founder and CEO of Global Footprint Network.