Carbon Disclosure and Climate Risk in Sovereign Bonds

A new report by Global Footprint Network, Carbon Disclosure and Climate Risk in Sovereign Bonds, outlines a methodology for investors to disclose and manage carbon exposure in their sovereign bond holdings. Until now carbon disclosure has focused mostly on listed equities and to a lesser extent corporate bonds. Yet sovereign bonds represent one of the largest asset classes and a significant percentage of diversified investment portfolios, especially among institutional investors.

ERISC PHASE II: How food prices link environmental constraints to sovereign credit risk

A growing imbalance between rising demand for food and the capacity to supply it, driven by factors including climate change and population growth, will result in higher and more volatile food prices and a higher likelihood of food price shocks. This report, produced in collaboration with UNEP FI, includes a ranking of 110 countries' vulnerability to a major food price shock, based on the impact of a food price shock on Gross Domestic Product (GDP), Consumer Price Index (CPI), and current account balance.

ERISC: A New Angle on Sovereign Credit Risk

ERISC Phase I, published in collaboration with UNEP FI, demonstrated for the first time that natural resource-related environmental issues can affect the economic and sovereign credit risk situation of countries in ways that can be identified and quantified. The research distilled the country risk profiles of Brazil, France, India, Japan, and Turkey.