ESG Credit
Market participants are focusing more on the potential for environmental, social and governance (ESG) issues to affect investment decisions and to assist in the development of a more sustainable economy.
  • - Environmental
  • - Social
  • - Governance
  • ESG Scores
  • Events

    30 Nov 2021|Moody's Investors Service
    The large number of rated regional and local governments (RLGs) in advanced economies drives a relatively benign overall credit impact. For RLGs in emerging markets, however, the credit impact from ESG is most often Moderately Negative or Highly Negative, given greater exposure to social and especially environmental risk, neutral or negative influence from governance, and more limited fiscal resilience or external support.

    Decarbonizing finance
    12 Oct 2021|Moody's Investors Service
    Banks, insurers and asset managers face rising pressure to set clear goals for reaching net-zero financed emissions. They must tread a cautious path between lending to and investing in green businesses and new technologies, while funding corporate clients in carbon-intensive sectors that are transitioning to low-carbon business models.
    04 Oct 2021|Moody's Investors Service

    An analysis of the loan portfolios of four European banks shows that climate risk is likely to be a key determinant of banks' loan quality and creditworthiness.

    23 Sep 2021|Moody's Investors Service
    Our analysis shows that banks’ on-balance sheet loans account for 60% of the total exposure, while asset managers’ equity holdings comprise 30%. Large rated insurers’ invested assets, which are weighted towards cash and government securities, take up the remainder.

    21 Oct 2021|Moody's Investors Service
    G20 banks have $14 trillion of loans to sectors facing carbon transition risk, equivalent to 19% of their gross lending, with those in emerging economies most exposed. The banking sector will benefit from new lending and investment opportunities, funded in part through green bond issuance, as emerging green industries and technologies seek finance.
    27 Oct 2021|Moody's Investors Service
    Simon Harris, head of the Financial Institutions group, outlines what exposure to carbon transition risk means for financial institutions, and how our upcoming environmental, social and governance scores will help to demonstrate the effect of ESG on credit ratings.

    20 Sep 2021|Moody's Investors Service
    We have begun assessing the risks and opportunities facing financial institutions as the world transitions away from dependency on fossil fuels toward greener alternatives. Amid mounting pressure on financial institutions from governments, investors, consumers and regulators, we will highlight how exposed they are to carbon risk, by major sector and region, and how certain business models will be better placed than others.
    17 Nov 2021|Moody's Investors Service
    Chile's proposed net-zero pathway, if adopted, would have benefits and costs. The utilities sector will play a paramount role in meeting the country's carbon reduction targets.
    16 Nov 2021|Moody's Investors Service
    Governments, financial institutions and companies made a series of pledges before and during the COP26 UN climate conference that add to increasing momentum toward a more rapid energy transition than previously expected. if actionable steps follow, these commitments will have broad credit implications across rated sectors and the global economy.

    09 Nov 2021|Moody's Investors Service
    Host Jennifer Wong and a panel of Moody’s Investors Service experts discuss the role of clean energy technologies – from hydrogen power to longer-lasting electric vehicle batteries, sustainable airline fuels and carbon capture and storage – in helping countries meet their net-zero carbon emissions targets.Read research related to this episode here.

    06 Sep 2021|Moody's Investors Service
    The increasing policy focus on introducing carbon pricing marks an important step toward emissions reduction. The economic cost of adoption will vary based on the policies agreed, with more carbon-intensive sovereigns and industries facing greater challenges.
    30 Nov 2021|Moody's Investors Service
    The world's urban population will grow by about 2.5 billion over the next 30 years, with much of the increase in Asian and African emerging markets. But extreme weather events, unreliable infrastructure and rising social risks in many of these countries will dampen the potential economic benefits of the demographic shifts.
    20 Oct 2021|Moody's Investors Service
    China’s plan to achieve economic sustainability by addressing income inequality and social risks will have far-reaching effects for many types of debt issuers. A lack of predictability and clear communication around policy implementation are the key near-term risks, while potential long-term benefits include improved productivity and social stability.
    02 Nov 2021|Moody's Investors Service
    Moody’s research on some of the biggest banks we rate globally shows that 89% of them have committed to disclosing their climate change-related risk exposures.
    28 Sep 2020|Moody's Investors Service

    Weak corporate governance can erode investor confidence and restrict a company's access to capital and ability to refinance, weakening liquidity.

    Brian Cahill
    Managing Director - ESG
    Swami Venkataraman
    Senior Vice President - ESG