ESG Impact
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.
  • SUMMARY
  • REPORTS

  • SECTOR IN-DEPTH
    25 Nov 2020|Moody's Investors Service
    This report focuses on emerging markets, where ESG risks are often higher than in developed markets and issuers' capacity to respond is often weaker. We expect ESG considerations to become even more material to debt issuers' credit quality globally – and particularly in emerging markets – given the range and rise of ESG risks such as climate change and public health.
    SECTOR IN-DEPTH
    23 Nov 2020|Moody's Investors Service
    The coronavirus crisis and global economic downturn have exacerbated underlying credit risks that have built up in recent years across many countries that participate in China’s Belt and Road Initiative.

    SECTOR IN-DEPTH
    18 Nov 2020|Moody's Investors Service
    We cited ESG risks as a material credit consideration in 50% of the more than 6,900 public-sector rating actions that we published from January 2019 to March 2020. Governance considerations were the most frequently cited factors for most types of public-sector issuers. The materiality of ESG considerations increased in the wake of the initial coronavirus outbreak.

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    OUTLOOK
    09 Nov 2020|Moody's Investors Service
    Global credit conditions will improve overall in 2021, aided by unprecedented COVID-19-related fiscal and monetary policy support. However, the initial rapid economic rebound is giving way to a patchier, more tenuous recovery as the pandemic proves hard to contain. Six key themes will shape the credit environment in the year ahead: Uneven recovery, policy challenges, rising debt burdens, digital transformation, environmental impact and social trends.
    PODCAST
    09 Nov 2020|Moody's Investors Service
    Anne Van Praagh and Michael Taylor of the Credit Strategy & Research team discuss six key trends that will affect the credit landscape as the world deals with the coronavirus crisis. These include an uneven and inconsistent economic recovery, sharply higher corporate and sovereign debt loads and numerous policy challenges for governments as they grapple with the economic and social consequences of the pandemic.

    SECTOR IN-DEPTH
    16 Nov 2020|Moody's Investors Service
    Global issuance of green, social and sustainability bonds totaled a record $127.3 billion in the third quarter, 30% higher than the previous record achieved during the second quarter of this year. Sustainable bond issuance reached $288.2 billion through the first nine months of the year, up 24% from the same period in 2019.

    SECTOR IN-DEPTH
    04 Nov 2020|Moody's Investors Service
    Our global cyber risk survey of electric utilities reveals that cybersecurity readiness tends to be stronger among large, regulated utilities than among small utilities and those operating in competitive markets. There appears to be relatively little difference among utilities based on geographic location or credit rating.
    Environmental Risk
    ASSESSMENT FRAMEWORK
    03 Nov 2020|Moody's Investors Service
    We have developed a carbon transition assessment (CTA) tool for electric utilities and power generators. Fossil-fuel power generation faces significant policy and technological challenges to adapt to changing demand in a low-carbon transition.

    PODCAST
    21 Oct 2020|Moody's Investors Service
    ​​Stefan Kahandaliyanage of the Insurance team lays out the risks US health insurers face from a policy drive toward a public insurance option. Plus, Simon Ainsworth and James Eck of the Insurance team discuss the latest developments in global insurers’ efforts to assess and manage climate risk. ​​​​​
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    SECTOR IN-DEPTH
    22 Sep 2020|Moody's Investors Service
    US states’ policies will drive long-term demand for renewable energy, benefitting US renewable energy developers despite lower electricity demand and a coronavirus-induced economic downturn. Growing cost competitiveness, along with environmental, social and governance and economic development considerations, will incentivize industry growth, especially among states that lack renewable energy goals or have exceeded them.
    Social Risk
    SECTOR IN-DEPTH
    19 Oct 2020|Moody's Investors Service
    With many states reporting increasing cases of COVID-19, healthcare is even more central to the policy conversation, and increasingly a topic of discussion ahead of the US presidential election. Whatever the election's outcome, the most significant long-term challenge to the industry is policy and regulatory risk, specifically legislation creating a public health insurance option that would compete with private insurance.

    SECTOR IN-DEPTH
    12 Oct 2020|Moody's Investors Service
    Student loan debt burdens loom large for household budgets across the US, exposing student loan asset-backed securities (SLABS) to social risks. Our analysis of 82 global sectors found that the SLABS sector, with almost $120 billion of rated debt, has high social credit risk.

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    PODCAST
    08 Oct 2020|Moody's Investors Service
    Atsi Sheth and Robard Williams from the Credit Strategy & Research team discuss the credit effects of key policy challenges that will confront the next US presidential administration, and the uncertainties surrounding the election.
    SECTOR IN-DEPTH
    08 Oct 2020|Moody's Investors Service
    The US presidential election outcome will help determine policies to address the weakened economy, the coronavirus pandemic and healthcare access, increasingly tense relations with China, fiscal policy and government debt, and environmental challenges. The policy response will affect credit conditions for a range of debt issuers.