ESG Credit
Market participants are focusing more on the potential for environmental, social and governance (ESG) considerations to affect credit risk and investment decisions.
  • SUMMARY
  • REPORTS
  • - Environmental
  • - Social
  • - Governance
  • ESG Scores
  • Events
  • 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.
    Methodology
    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.

    Sector In-Depth
    14 Jun 2022|Moody's Investors Service
    European sustainability-linked notes and bonds issued in 2021 to finance green projects (green bonds) provided weaker covenant protections than non-green bonds in every risk category except change of control. Weakness in green bond covenants was linked to private-equity-backed transactions. 

    Sector In-Depth
    08 Jun 2022|Moody's Investors Service
    The EU’s plan to wean member states off Russian natural gas will increase decarbonization costs and investments for utilities, grid operators and energy-intensive companies with significant exposure to countries most reliant on Russian gas. Higher investment in renewables could weaken utilities’ and grid operators’ credit metrics over the next three years.

    27 May 2022|Moody's Investors Service
    Antonio Tena and Johann Grieneisen of the Structured Finance Group join host Aaron Johnson to discuss how ESG factors, including the risk of flooding in The Netherlands, affect European transactions we rate.
    Environmental
    Sector Comment
    10 Jun 2022|Moody's Investors Service
    On 8 June, the EU’s parliament voted to support a target of zero emissions for new passenger cars and light commercial vehicles by 2035. If this requirement is implemented, automakers and parts suppliers will need to accelerate investments to develop and launch new battery electric vehicles and related parts, which will increase pressure on cash flow in the auto sector.
    Sector In-Depth
    13 Jun 2022|Moody's Investors Service
    A significant shift in India's energy mix toward wind and solar energy will play a key role in meeting the country's mid- to long-term emissions reduction targets, buoyed by technological advancements, supportive government policies and private-sector investment.
    Social
    Sector In-Depth
    13 Jun 2022|Moody's Investors Service
    Concerns about service affordability, a key social risk for US regulated electric and gas utilities, may limit the ability of utilities to recover higher costs. Their rates are subject to a public regulatory process that can lead to adverse outcomes if regulators feel that customers have become too burdened.
    Sector In-Depth
    26 Apr 2022|Moody's Investors Service
    Behavioral health, a customer relations consideration in our social classification, is an important driver of US medical costs. Health insurers that can better treat mental and behavioral issues will have long-term competitive advantages over those that fail to improve in this area. Failure to produce better outcomes and contain costs will invite renewed attempts at political solutions, which often pose risks.
    Governance
    Sector Profile
    25 May 2022|Moody's Investors Service
    Aspects of governance at privately controlled companies often differ from those of publicly owned enterprises, including decision-making processes, value-extraction mechanisms and board independence. Public disclosure of financial information is often limited, making it more difficult to assess governance strength.
    Sector Comment
    02 Jun 2022|Moody's Investors Service
    On 1 June, Deutsche Bank AG announced management changes as regulators investigate allegations that its asset management arm DWS had failed to apply distinct environmental, social and governance criteria to certain investments it had classified as ESG investments. We expect regulators to increasingly promote consistent, comparable and reliable information about ESG factors, which could increase compliance and legal risks.