ESG Credit and Sustainable Finance
Moody’s insights on the credit impact of ESG factors and latest analysis of sustainable debt instruments
  • 概要
  • レポート
  • - Environmental
  • - Social
  • - Governance
  • ESG Credit Scores
  • Second Party Opinions
  • ESG Scores: Credit Impact Scores and Issuer Profile Scores Explained
    On-Demand Webinar
    08 Mar 2022|Moody's Investors Service
    Listen to our on-demand webinar where the Moody’s ESG Integration team review the approach to the ESG issuer profile scores and credit impact scores and provide some key insights into the impact of ESG on credit ratings.
    19 Oct 2021|Moody's Investors Service
    In this cross-sector rating methodology, we explain our general principles for assessing environmental (E), social (S) and governance (G) risks, collectively ESG, in our credit analysis for all sectors globally.
    Second Party Opinions
    18 Oct 2022|Moody's Investors Service
    As sustainable finance offerings account for an increasing share of annual debt issuance, Moody's Second Party Opinions will address growing demand for rigorous, consistent and independent analytsis of the sustainability credentials of labelled debt.
    03 Oct 2022|Moody's Investors Service
    We have enhanced our capacity to deliver Second Party Opinions (SPOs) to meet growing market demand for independent views on the credentials of labeled green, social and sustainable financing.
    Research Report Highlights
    View all reports
    Sector In-Depth
    16 Nov 2022|Moody's Investors Service
    Municipalities are increasing their CRE emissions regulations, leading to potential financial strains on owners and posing CMBS cash flow risk.

    15 Nov 2022|Moody's Investors Service
    Effective net zero plans will help insurers manage their exposure to carbon transition risk, which could erode the value of their carbon-intensive investment assets and reduce their premium income. The most credible plans include measurable interim targets and are based on robust, transparent frameworks.

    14 Nov 2022|Moody's Corporation
    Emerging market governments and companies face challenges in managing the social effects of decarbonization. But many of those governments are at the forefront of financing initiatives that can help.

    Sector In-Depth
    10 Nov 2022|Moody's Investors Service
    Carbon transition risk will require banks to actively manage their loan and investment exposures to preserve their credit quality. Even banks with ambitious climate targets could face negative credit implications as they balance financial, regulatory and reputational risks with new business opportunities. Interim target-setting and annual progress reporting will support banks' net-zero governance.

    09 Nov 2022|Moody's Investors Service
    In this episode of Emerging Markets Decoded, Moody’s analysts discuss the potential social ramifications of climate action and explore emerging markets’ relative readiness for a “just transition.”

    Sector in-depth
    08 Nov 2022|Moody's Investors Service
    Most private equity-owned companies rated under our corporate finance methodologies are exposed to governance attributes that carry highly negative credit risks, as reflected in their issuer profile scores. These exposures, driven mainly by financial strategy, typically place a significant drag on PE-owned companies' overall credit quality, shown by their credit impact scores.

    Sector in-depth
    08 Nov 2022|Moody's Investors Service

    The prevalence and ambition of decarbonization targets are lowest among companies most exposed to transition risk. Given increasing market and regulatory pressures, a lack of clarity on plans is likely to lead to rising credit risk for those most exposed. Comparing plans is difficult because the granularity of disclosures varies widely.

    Sector in-depth
    03 Nov 2022|Moody's Investors Service
    Capital spending at US regulated utilities is increasing substantially, much of it to address carbon transition and physical climate risks. Elevated capital spending may pressure credit quality, as high interest rates and commodity prices increase social risks related to customer affordability.

    Sector in-depth
    03 Nov 2022|Moody's Investors Service
    Growing low-carbon operations is vital to the future of BP p.l.c. (A2 stable), Shell Plc (Aa2 stable) and TotalEnergies SE (A1 stable). But if diversification weakens profitability and cash flow, or entails significant debt financing, the credit implications could be negative.

    Sector in-depth
    03 Nov 2022|Moody's Investors Service
    Indian renewable energy companies’ solar and wind projects missed generation targets in fiscal 2022 because of lower irradiance and wind resources, respectively. The companies’ large and diversified portfolios are helping to offset the credit impact of individual project underperformance.

    02 Nov 2022|Moody's Investors Service

    Global sustainable bond issuance totaled $215 billion in the third quarter, down 13% from a year earlier. Year to date, issuance was down 17%, less than the 27% decline in the broader bond market.

    01 Nov 2022|Moody's Investors Service
    The US, the EU and other large economies are advancing carbon transition policies. Still, announced global pledges by governments fall short of what is necessary to reach net-zero goals by 2050.

    31 Oct 2022|Moody's Investors Service
    Sectors facing very high or high environmental credit risk account for $4.3 trillion in rated debt, up 27% from $3.4 trillion in December 2020 and up 109% from $2 trillion in late 2015 when the Paris Agreement on climate change was announced. These sectors now account for 5.1% of total rated debt outstanding, up from 4.2% in 2020 and 3% in 2015.

    31 Oct 2022|Moody's Investors Service
    The difficulties many emerging market sovereigns face in mobilizing capital for climate-related initiatives, together with unsustainable debt dynamics in some cases, have again increased attention on debt-for-climate/nature swaps. In this FAQ, we describe these swaps and explain their credit impact.

    24 Oct 2022|Moody's Investors Service
    Our carbon transition assessments (CTAs) for the 13 shipping companies in our rated universe indicate material exposure to carbon transition, with all companies in the sector receiving scores of CT-6 or CT-7 on our 10-point CTA scale. Shipping companies have limited capacity to make sharp reductions in carbon emissions based on existing technologies. Deep decarbonization will rely on the development and deployment of commercially viable zero-emissions fuels.

    20 Oct 2022|Moody's Investors Service
    Governments that do not address the socioeconomic impacts of a transition to a low-carbon economy face risks that can weaken their credit quality. Those that manage it well can benefit. The transition will be most difficult for emerging market sovereigns that rely on hydrocarbons as a source of income and revenue, especially when government-related entities operate in carbon-intensive sectors.

    20 Oct 2022|Moody's Investors Service
    Despite growing awareness of the costs of climate change, only 25% of estimated global adaptation financing needs are currently being met. Given the financial constraints faced by the sovereigns and regional and local governments most vulnerable to physical climate risk, strong governance will be a key differentiating factor of governments' climate resilience.  

    18 Oct 2022|Moody's Investors Service
    Collateralized loan obligations' (CLOs) focus on environmental, social and governance investment factors is continuing to grow, with ESG criteria now present in every European deal and the vast majority of US deals. Despite the slightly smaller pool of eligible assets it creates, the heightened focus on ESG factors is not affecting portfolio credit quality or diversification among deals we rate.