Toni Kaplan: Thanks so much. Wanted to go back to the sustainability revenue streams. You mentioned seeing the shift from scores to data. I wanted to understand better if that has pricing implications. And also, is it harder to build a moat when it’s the data not either ratings or scores that are being demanded by customers? And then maybe I know Trucost is very high quality. Maybe you could talk about how it’s proprietary and other data brands within ESG where you have an advantage. Thanks.
Douglas Peterson: Thank you, Toni. Let me just take a step back one second and talk about what we’re hearing in the market. I’ve been traveling this year. And I’ve been in every continent — I’ve been except for Africa and Australia. But I’ve been around the world. I’ve been traveling a lot. And in every single conversation I have, we talk about sustainability, climate, ESG, energy transition. This is on everyone’s mind. And depending on where you are in the world, it’s either moving faster, maybe a little bit slower in the U.S. than it had been before. But there’s also a shift going on in the way that regulators and investors think about their accountability to deliver their own views on climate change and on energy transition.
The investors and regulators no longer want whoever is managing their money or who they’re regulating to just make a decision based blindly on a score. They want them to have their own opinion based on their own analysis and building models from the bottom up. So, when you think about that shift taking place in the market, you then — we bring the kind of data which has time series on it. We’ve had information that goes back 15, 20, 30 years. Trucost last quarter grew 38%. Our climate service, which is something that people are using for modeling climate change and physical risk, that grew 78%. So, we’re seeing that some of these — I call them, proprietary data or modeling services that we have are really in high growth and high demand. As you know, we also built a climate credit analytics model with Oliver Wyman.
That grew over 50% in the second quarter. And so, we see across the globe that people are starting to make decisions themselves and they can no longer rely on just one single data input. They need to have the data. So, I think that we have a great head start by having bought Trucost seven years ago. We had the S&P Dow Jones Sustainability products, which started over 20 years ago. And let me hand it over to Edouard, who can give a little bit of color also for the automotive and mobility sector.
Edouard Tavernier: Hi, Toni. A couple of good examples actually of what Doug was talking about in Mobility, and opportunities we’re able to unlock now as part of S&P Global in partnership with S1. As Doug mentioned, Climanomics, we launched in June e-version [ph] of Climanomics, which assesses physical risk for the automotive sector, where we were able to feed all our supply chain data on the automotive sector within Climanomics platform. That’s one example. The bigger one, actually, is we are now building a carbon accounting data set for the Mobility sector. And as you know, in automotive, the key question mark is Scope 3 emissions pertaining to vehicles on the road and the upstream supply chain of the battery. In this space, we have a unique opportunity with our proprietary data to become the sort of record of carbon accounting data for the automotive industry.
So, a couple of examples here about how raw data itself combined with our S1 expertise can really create some unique and defensible products.
Douglas Peterson: Thanks Toni.
Operator: Thank you. Our next question comes from George Tong with Goldman Sachs. Your line is open.
George Tong: Hi. Thanks. Good morning. You maintained your outlook for Commodity Insights revenue growth for the full year. Can you talk about the sensitivity of Commodity Insights revenue to a pullback in oil prices? What are the puts and takes in the various parts of the business?
Douglas Peterson: Thanks George. Well, as we’ve talked about over many years, the sensitivity to the price of oil in the Commodity Insights business is actually not very important to get to really low oil prices, like below the 60s into the 50s and 40s. And similarly, the same thing happens. It needs to get well over $100 before it starts creating sensitivity to the market or the industry. What we’re actually seeing is a lot of interest and a lot of growth outside of what would be oil and gas. As you know, we have a large sustainability set of products and climate change products, energy transition within Commodity Insights. We also see a lot of interest and lot of growth in what we’ve done in terms of combining the product sets from the old Platts business with the E&R from IHS Markit.
This is where you’re taking prices and benchmarks and adding in forecasting research and analytics. So, we see a lot of interest in what we’re doing. Our customers are asking for more. And we’re layering on top of that artificial intelligence tools, tools, analytical better vision, better charting capabilities, ability to use our platforms more simply. We’ve taken multiple products and combined them into one or two solutions. So, across the board, we’re seeing that our clients need more. They need to understand more about what’s happening in the energy market. So, the sensitivity to the price of oil really doesn’t kick-in until the oil price drops a lot or gets really, really expensive. Thanks George.
Operator: Thank you. Our next question comes from Faiza Alwy with Deutsche Bank. Your line is open.
