Understanding the true value of our economic activity is critical for our shared future. This report by S&P Global Sustainable1 with support from Capitals Coalition takes a step toward this by estimating the global level of environmental damage costs of publicly listed companies which are otherwise invisible.
The report offers a summary of these costs by sector, sector group and regional levels. It provides a look at the true magnitude of the challenge, estimating environmental negative externalities at $3.71 trillion in 2021 alone. By expressing these environmental impacts in monetary terms, this report advances upon the work of its predecessor by integrating disclosed information on environmental key performance indicators (EKPIs) and social and human capital issues. While this report highlights these capitals impacts, there is still room for further development, including by expanding the analysis to the entire value chain and expanding valuation to social and human impacts.
Overall, this report builds on efforts to integrate the value of nature, people and society into corporate decision-making. It reflects the increasingly recognized need for a more comprehensive estimate of the annual value of economic activity and encourages the development of policies and practices that internalize these externalities, leading toward a more sustainable and equitable future.
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