ESG Credit
Market participants are focusing more on the potential for environmental, social and governance (ESG) considerations to affect credit risk and investment decisions.
  • - 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.
    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.

    23 May 2022|Moody's Investors Service
    Environmental risks include emissions standards and climate exposure that pose asset value risk to transactions' underlying collateral. For social risk, consumer preference and regulatory scrutiny are key issues.

    Sector In-Depth
    11 May 2022|Moody's Investors Service
    Efforts to meet national net-zero commitments will increase carbon transition risk for the most exposed issuers in emerging markets. Adjusting to a low-carbon economy will require balancing economic and social considerations with decarbonization efforts. As carbon transition accelerates in emerging markets, sectors with limited decarbonization options will face the most risk.

    Sector In-Depth
    11 May 2022|Moody's Investors Service
    The UK’s plan to phase out carbon emissions will create additional investment needs across industries, as the government's funding commitments currently represent only a fraction of the overall financial commitment required to achieve its decarbonization objectives.

    03 May 2022|Moody's Investors Service
    Rahul Ghosh of the ESG team and Douglas Segars of the Project & Infrastructure Finance Group join host Sarah Carlson to discuss how Russia’s invasion of Ukraine has pushed the issue of energy security to the top of the policy agenda in Europe and what effect it will have on the region’s far-reaching decarbonization plans.
    Sector Comment
    21 Apr 2022|Moody's Investors Service
    Russia's invasion of Ukraine will likely slow Europe’s near-term efforts to cut carbon emissions as many countries prioritise energy security and affordability over decarbonisation. Because of pressing economic imperatives, the only viable alternatives to Russian hydrocarbon imports are other hydrocarbons. 
    Sector In-Depth
    19 Apr 2022|Moody's Investors Service
    India's high growth potential, significant economic development needs and large agricultural sector pose hurdles to achieving net-zero greenhouse gas emissions by 2070 and intermediate goals through 2030. Planned renewable energy investment will depend on low-cost, long-term private capital, as support from external donors is unlikely to be sufficient.
    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.
    Sector In-Depth
    25 Apr 2022|Moody's Investors Service
    Rising food and fuel prices, and supply chain disruptions – exacerbated by the Russia-Ukraine military conflict – mean that inflationary pressures will be more pronounced and persist for longer than we previously expected. Persistently elevated inflation would have negative credit implications for sovereigns, especially amid slowing economic growth and rising interest rates.
    Sector Comment
    04 Apr 2022|Moody's Investors Service
    On 30 March, the US Federal Deposit Insurance Corporation (FDIC) issued a request for comment on proposed principles for climate-related financial risk management for US banks whose assets exceed $100 billion. The principles and request for comment are credit positive for US banks because they would facilitate better understanding and integration of climate risk management and further the creation of industrywide best practices. 
    Sector Comment
    28 Mar 2022|Moody's Investors Service
    The US Securities and Exchange Commission’s proposal to expand and standardize the climate-related disclosures of publicly traded companies will potentially make such disclosures more useful and reliable for investors. But consistency and comparability across companies will likely remain a near-term hurdle.

    Brian Cahill
    Managing Director - ESG
    [email protected]
    Rahul Ghosh
    Managing Director - ESG
    [email protected]
    Swami Venkataraman
    Associate Managing Director - ESG
    [email protected]