Fitch Ratings
Climate Impact & Sustainability Data (2022)
Reporting Period: 2022
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- Inflation exceeding expectations and becoming more entrenched.
- China's property market outlook deteriorating.
- High wholesale gas prices impacting firms' costs and household budgets.
- Labour market imbalances (low unemployment, high vacancies) leading to wage increases.
- Policy tensions between governments and central banks.
- Hidden leverage in the non-bank financial sector.
- Pandemic disruptions to China's exports.
- Potential for severe winter natural gas shortages in Europe (though averted in the short term).
Mitigation Strategies
- Central banks raising interest rates to combat inflation.
- Easing of the EU gas crisis due to increased LNG imports and reduced consumption.
- Government intervention to cushion households from energy price shocks (though with limitations).
- Policy easing measures in China to prevent a deeper property market slump.
- EU efforts to diversify energy sources and enhance LNG import infrastructure.