Moody's on Climate
Navigate climate risk with confidence – trusted data, financial insight, better decisions.
Chartis Research: Climate Risk Modelling Solutions, 2023
We’re delighted to share that Moody’s are proud category leaders in physical risk, transition risk, and natural catastrophe modelling.
The Future of Caribbean Insurability
Explore how detailed climate risk modeling can enable the assessment of prioritization of risk reduction investments with this case study on the Future of Caribbean Insurability.
Adapting to Hurricane Risk
Discover how Moody’s is helping insurers and real asset investors perform cost-benefit analyses on property-level hurricane adaptation investments, by modeling physical risks in the built environment and enabling stakeholders to measure the financial impact of hurricane risks now and in the future.
Moody’s Road to COP 28
From Climate Week NYC through to COP 28, Moody’s explores climate risk and opportunity. #MoodysonClimate
Moody’s on Climate for Banking
Through Moody’s climate solutions, banks can manage climate-related risks and uncover opportunities across their organization with a consistent and meaningful view of physical and transition risks.
Climate Risk is Business Risk
Systemic uncertainty is complicating risk planning and investment decision-making
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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.
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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
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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.
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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.
Translate Global Context into Business Relevance
Explore how Moody's on Climate solutions deliver transparent and robust data, analytics, and insights designed to integrate into your existing business workflows.
Foundational Analysis
Conduct foundational, company, and sector-level analysis and benchmarking to uncover the climate impact on interconnected risks.
- The integration of climate risk data and insight across our portfolio of risk intelligence offers a complete and consistent view of physical and transition risk on material concerns to your operations and financials.
Foundational Analysis
Explore our cross-industry climate risk capabilities
Banking
Bank resilience and growth potential depends on a comprehensive view of risk, which informs and supports risk management strategies.
- Climate change presents physical and transition risks with a direct impact on credit worthiness and likelihood of default for credit exposures.
- Effective management of climate risk requires its integration throughout existing workflows as a dimension of overall risk for banks.
- Explore our climate risk solutions for loan decisioning, portfolio planning and stress testing, and disclosures and regulations.
Investors
Expand perspective on investing with insight into climate risk.
- Trusted data, metrics, and tools that enable end-users to measure, benchmark, and manage climate-related exposure and risk within credit portfolios.
- Utilize climate data and analytics to strengthen transaction due diligence and screening such as for your real estate investments.
- Demonstrate adherence to disclosure & reporting requirements to align with TCFD and net zero commitments.
Investors
Insurance
Enhance decision-making for risk and capital management.
- Expand risk and capital management approaches by assessing climate-related risks and understanding the future impact of climate change on asset and liability projections.
- Help insurers anticipate socio-economic uncertainty so they can make an informed choice of scenarios to use for ORSA/TCFD/stress testing.
- Align financial analysis with emerging accounting, reporting, and disclosure requirements.
Insurance
Corporates
Enhance your climate and sustainability strategy with trusted data and analytics that create insight on risk.
- Comply with evolving disclosure and reporting requirements such as SFDR and CSRD.
- Boost your supply chain risk management with global, regional, and site-level insights of physical asset exposure and business impacts of transition risk.
- Explore globally comparable rankings of climate-related exposures, as well as the impact on credit ratings.
- Support sustainable debt issuers’ funding strategies by helping communicate objectives and enhance transparency through independent assessments.
Corporates
Governments
Assess climate risk materiality and extend risk management frameworks.
- Complete risk assessments and benchmarking of climate risk, relying on research and insights, transparent modeling, and rigorous data for adaptation and resilience in infrastructure and properties.
- Assess climate transition risk with perspectives on carbon emissions at the global, regional, and local scale and insights on macroeconomic and credit impacts across climate scenarios.
- Support sustainable debt issuers’ funding strategies by helping communicate objectives and enhance transparency through independent assessments.
Why Moody's
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
Context
Combined expertise in economic and climate science to map the global trends from changing physical threats to shifting politics, technology, and demand.
Perspective
Targeted models and analytics to scale into sector-specific, business-relevant future scenarios for planning and investment through climate change.
Detail
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
Climate on Demand
Get an asset-level forward-looking view of physical climate risk exposure and financial impact
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Moody’s Economic Scenarios for Climate Risk
Scenarios based on the Network for Greening the Financial System's Phase III guidance
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ESG Credit & Sustainable Finance
ESG factors and independent opinion in credit analysis of entities’ sustainable financing plans
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Moody’s RMS Climate Change Models
Models that extend the industry-standard, fully probabilistic approach to climate change risk
LEARN MOREResearch & Insights
Curated Research & Insights on critical dimensions of climate risk covering financial quantification, credit impacts, macroeconomic outlooks, and sector-specific implications
Adapting to Hurricane Risk
Discover how Moody’s is helping insurers and real asset investors perform cost-benefit analyses on property-level hurricane adaptation investments, by modeling physical risks in the built environment and enabling stakeholders to measure the financial impact of hurricane risks now and in the future.
Quantifying Financial Impact of Climate Risk with Moody’s Climate on Demand
Following increases in climate-driven losses, asset managers and owners urgently need to answer this question: How can I accurately assess the impact of climate and climate change on my asset portfolio to inform strategies that can help reduce my climate risk exposure?
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.
Unleashing the Power of Risk Assessment
For the second consecutive year, Moody’s has secured the number-one overall ranking in the Chartis RiskTech100® annual report, the most comprehensive study of the world's leading providers of risk and compliance technology.
In addition to earning the highest overall position, Moody’s won in 10 separate categories including climate risk.
Moody’s Climate Events
Check out our upcoming virtual and in-person events. Miss one? Access the recordings on-demand.
Adapting to New Climate Disclosures: Shaping the Future of Insurance [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.
The Impact of Climate Risk on the Energy Sector [On-Demand]
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.
Talk to a Moody’s climate risk expert today.
Explore how Moody’s on Climate delivers insight on risk and opportunity with robust and reliable data and analytics, and transparent methodologies you can trust.
Let us share how our Moody’s on Climate solutions are designed to complement your existing workflows to deliver the insight you need. Our DNA is financial intelligence and our investments have amplified our offerings with data, modeling, and IP for financial quantification of climate risk to help you make better, faster decisions.
