Our net zero assessments provide an independent and comparable view on the strength of an entity’s carbon emissions reduction plans compared to a global net zero pathway. They incorporate an entity’s ambition, the implementation of its plan and its governance of greenhouse gas emissions reductions.
Female labour participation rates have more than recovered losses sustained during the pandemic. The associated boost in economic activity and support to households is positive for a range of issuers.
Across regions, the correlation between board gender diversity and credit ratings is evident in North America, Europe and Asia-Pacific, according to our analysis of about 3,100 companies we rate.
Issuance of sustainable bonds that finance projects tied to gender equality and the empowerment of women is poised to extend recent gains after topping $49 billion in 2023, up 53% from 2022.
Sharp post-pandemic rebound in female labour force participation helps drive gains in global economic prosperity.
Twenty-one sectors face very high or high social credit risk, up from 14 in 2019, according to our updated heat map of social risk. Social risks are more pervasive than environmental risks.
Six key environmental, social and governance trends will shape credit strength in 2024 and beyond. Read the outlook.
Progress on pledges made will raise carbon transition risks for certain entities, but the credit impact will be determined by how and when policymakers and investors translate them into action.
Brazil's ecological plan can support the nation's credit by promoting sustainable development that increases productivity and jobs, including in regions where social inequities are most pronounced.
Companies in hard-to-abate sectors are slowly raising the ambition of their decarbonization goals. Some could find it harder to attract funding as banks steadily clamp down on emissions financing.
Bridging the gap will involve a multipronged approach to ensure infrastructure projects are attractive to private-sector investment and use of multilateral development bank funding is optimized.
Many utilities and oil and gas companies in the Gulf Cooperation Council have set emissions targets, but none for indirect emissions in the value chain (scope 3), which form most of their emissions.
While the shift to clean energy comes with credit risks, these can be mitigated by associated economic opportunities for those governments with the institutional capacity to capitalize on them.
Despite diversified business models and healthy access to capital, continued capital spending on oil and gas production and insufficient non-hydrocarbon investments indicate sustained exposure to a rapid transition.
Environmental credit risk will increase as the transition to a low-carbon economy proceeds apace and the adverse effects of climate change become more evident.
Carbon transition, adaptation to climate change and climate finance – core topics at COP28 – are crucial for EMs because of their exposure to environmental risks and limited capacity to respond.
Exposure to water-related risks, which climate change will compound, curbs growth potential and erodes fiscal resources. It also adds to social and cross-border tensions, raising political risk.
Cities can be vulnerable to physical climate risks, such as flooding and extreme heat, given their geography and topography, and because of their concentrations of people, assets and infrastructure.
Positioning for a rapid transition to a low-carbon economy varies greatly among and sometimes within sectors, our updated proprietary carbon transition indicator scores show.
With the window to limit global warming to 1.5 degrees closing, the focus on net zero commitments is likely to intensify at this year’s climate summit, adding to pressure on carbon-intensive entities.