Climate Risk is Business Risk
Sectors with over $8T in rated debt face heightened climate risk1
3,500+ climate laws and policies2
$20T+ investment opportunities by 20303
Systemic uncertainty is complicating risk planning and investment decision-making
Physical risks from intense acute events such as wildfires, and chronic events including sustained droughts, add new considerations for real assets because of the threat of significant damages and associated disruption to operations and supply chains.
Transition risks from evolving policy and regulation, advancing low-carbon technologies, and changing customer/stakeholder preferences are adding complexity to compliance, reporting, and growth strategies.
Identify, manage, and measure climate risk and unlock opportunity
It’s not just about understanding the scope of climate risk, but what it means to your bottom line. Financial quantification of specific climate risks can help you make better, faster decisions.
Climate risk is complex, and its impacts vary while influencing other areas of risk. Comprehensive understanding of climate risk reflects insight on credit ratings and debt markets, global macroeconomic outlooks, and competition in traditional and emerging markets. Understanding these interconnected risks can help you sharpen your risk management strategies and uncover new opportunities.
Rigorous, Reliable, and Transparent Foundation to Integrate Climate Risk into your Workflows
Data & Analytics
The foundation of Moody’s value is data, and our approach to financial quantification of risk:
- Interconnected Financial Risk – market-tested data and tools identify and quantify the impact of climate risk on global debt markets, credit performance, and financial outcomes.
- Physical Risk – decades of real-world data on damages and costs from climate events inform transparent and robust solutions for modeling risk to real assets and translating it to company and country-level impacts.
- Transition Risk – comprehensive and continuously improving datasets and insights on policy, macroeconomic trends, and company-specific profiles to analyze the impacts of potential future climate scenarios.
Research & Insights
Built on more than 100 years of analytic experience, Moody’s research and insights provide transparent, rigorous, comprehensive, and independent perspectives on climate risks and opportunities:
- Global context on macroeconomic trends tied to physical and transition risks.
- Increasing transparency on how climate factors affect credit ratings.
- A portfolio-level perspective that provides sector-specific context on the impact of climate.
- Asset-level detail to help you make decisions and plan for shifting future climate scenarios.
- Detailed assessments of issuers’ sustainable finance frameworks for bond and loan issuance.
Navigate an Uncertain Landscape of Increasingly Interconnected Risks
Combined expertise in economic and climate science to map the global trends from changing physical threats to shifting politics, technology, and demand.
Targeted models and analytics to scale into sector-specific, business-relevant future scenarios for planning and investment through climate change.
Tailored solutions designed to enhance your risk workflows with analysis that quantifies potential climate risk impact to inform company, firm, and entity-level decisions.
Explore Moody's Climate and ESG Capabilities
Integrated risk insights built on the foundation of Moody’s financial intelligence bolstered with climate, ESG, and sustainable finance IP. Data, analytics, and technology to guide better decisions
Research & Insights
Curated Research & Insights on critical dimensions of climate risk covering financial quantification, credit impacts, macroeconomic outlooks, and sector-specific implications
Powering a Greener Future in Asia Pacific
Bringing our recent research on APAC’s energy transition to its close, we will host a webinar looking at what energy transition means for energy security, what the main risks and opportunities are in the pursuit of net zero, which countries and sectors are most affected, and more.
China-National ETS Is Credit Negative for Coal Power Generators, but the Impact Will Be Gradual
The last in our series of reports on APAC’s energy transition takes a detailed look at China’s emissions trading system – the world’s largest – and its impact on the country’s coal power sector.
Startups and Nonprofits Race to Unlock Africa’s Agriculture Potential as Millions Face Food Crisis and Droughts
Extreme temperatures, dryness and drought, exacerbated by climate change, are threatening Africa’s food supply chain, food production and development. Numerous actors — from governments and big business to global humanitarian organizations and African startups — are responding to the continent’s food challenges.
Asia-Pacific: Credit Impact of Energy Storage Advances to be Felt Increasingly by Power Companies
The first in a series of reports on the opportunities and challenges associated with APAC’s energy transition looks at the need for technological advancement in energy storage solutions, which currently are not economically viable at a large scale.
Effective Decarbonization Plans Mitigate Transition Risk, but Limited Disclosures Inhibit Assessment
The prevalence and ambition of decarbonization targets are lowest among companies most exposed to transition risk. Given the increasing market and regulatory pressures, a lack of clarity on plans is likely to lead to rising credit risk for those most exposed. Comparing plans is difficult because the granularity of disclosures varies widely.
Moody's Climate Events
Check out our upcoming virtual and in-person events. Miss one? Access the recordings on-demand.
In the face of emerging disclosure standards and escalating risks associated with reputation and climate-related litigation, insurers must advance their risk management practices to become both climate-conditioned and ESG aware. Join us for an engaging discussion centered on these key topics. Gain first-hand insights from leading industry experts on the current landscape and the necessary changes insurers need to make.
Explore the key market dynamics at the intersection of climate change and the energy sector with Moody's and industry experts in this virtual roundtable. The speakers will discuss economic implications and opportunities from climate change, the transition to renewable energy with a focus on the opportunities for H2 Fuel sources, and assessment of infrastructure vulnerability and resiliency.