Energy has become a risky and uncertain industry. Although it accounts for a mere 10% of the total GDP, any disruption in the energy supply chain has direct consequences on the other sectors of the economy. Also, the increasing pace of events linked to climate change puts a new pressure on the energy industry.
In a context of increasing fossil fuels scarcity, new technology challenges, and increased global competition, countries are not exposed to the same nature – and level of risk. At Beyond Ratings, we analyse the impacts of energy stresses on the national economies. Our expertise brings a new insight to epitomize relation between energy supply, demand and its interactions with the rest of the economy.
We provide a systemic assessment of the energy risks that can be faced in a country:
- energy supply: risk of disruption in supply, quality of trade partners, quality of infrastructure
- energy demand: structure of the industry sector, potential for fuel switch, transport evolution
- energy prices & taxes: level and stability of prices, existing subsidies, potential for taxes increase
Every year the level of global CO2 emissions breaks a new record. Climate change impacts are already visible, through the increasing number of extreme natural events, such as giant storms, cold waves, droughts, or floods. These events have disruptive impacts on the economy and potentially stress the financial and political stability of countries.
At Beyond Ratings, we assess the exposure of countries to climate risks and measure the financial materiality of these risks. Taking into account the specific context of each country, we analyse the potential impact of climate risk through a comprehensive assessment methodology. We enable our clients to make sound investment decisions by comparing countries on their climate resilience potential.