Environmental, Social and Governance (ESG)
Market participants are focusing more on the potential for environmental, social and governance (ESG) issues to impact investment decisions and to assist in the development of a more sustainable economy. View Moody’s latest research.
  • SUMMARY
  • REPORTS

  • SECTOR IN-DEPTH
    19 Sep 2019|Moody's Investors Service
    Governance failures can lead to reputational and financial risks, including higher debt financing costs or loss of access to capital markets. Governance risk tends to be issuer- or transaction-specific, while environmental and social risks are more sector-specific.

    SECTOR IN-DEPTH
    19 Sep 2019|Moody's Investors Service
    The median governance assessment (GA) score of 50 publicly traded North American utilities and power companies with about $760 billion in debt is GA-1, indicating generally credit-friendly corporate governance characteristics.

    SECTOR IN-DEPTH
    11 Sep 2019|Moody's Investors Service
    Gender diversity on North American corporate boards is correlated with higher ratings. But diversity mandates can create short-term credit risk by requiring significant board turnover for companies with few or no female directors.
    ISSUER COMMENT
    10 Sep 2019|Moody's Investors Service
    Higher female participation in the US labor force, coupled with increases in female employment and wages, enhances the growth potential of the US economy. But gender gaps in workforce participation and pay in the US remain wider than in other advanced economies.

    SECTOR IN-DEPTH
    10 Sep 2019|Moody's Investors Service
    We expect demand for these metals to grow rapidly into the late 2020s and beyond. In this report, we identify the sovereigns that could see credit benefits from this trend, and explain some of the hurdles that will likely arise.

    SECTOR COMMENT
    04 Sep 2019|Moody's Investors Service
    (Re)insurers will likely incur claims on high-value commercial and residential properties, including watercraft, and private passenger and commercial vehicles.

    SECTOR IN-DEPTH
    04 Sep 2019|Moody's Investors Service
    Eroding thermal coal demand will significantly affect US freight railroads' coal shipments, highlighting that the environmental risks posed by coal extend from miners and users to transporters of coal.

    SECTOR IN-DEPTH
    16 Aug 2019|Moody's Investors Service
     The credit impact of ESG investment restrictions' on CLOs we rate is marginal, given CLOs' limited exposure, in both the US and Europe, to companies in the restricted industries. Five European CLOs with ESG investment criteria have emerged in the past 18 months, and we have recently, for the first time, rated two US CLO with ESG investment criteria.