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ESG risk

In a rapidly changing business environment, market participants face increasingly complex and interconnected risks, including those arising from Environmental, Social, and Governance (ESG) factors.

As a global, integrated risk assessment firm, Moody’s provides a clear and enhanced understanding of risk by embedding ESG and climate considerations into trusted insights and adaptable solutions.

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What we do

Leveraging our longstanding record in credit risk analysis, deep ESG domain expertise and innovative technologies, our ESG risk solutions help address evolving business needs and inform better decisions.

01
Deep ESG domain expertise

Moody’s provides you with access to our knowledgeable team, our customer-centric and globally informed ESG solutions, and our transparent methodology that considers both financial and stakeholder impact.

02
Trusted ESG insights

Underpinned by our rigorous ESG data and transparent methodologies, we provide trusted insights that inform better decisions. 

03
Adaptable ESG solutions

We leverage our deep domain expertise and industry knowledge as well as innovative technologies to help you address evolving business needs.

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Speak to our team today

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Feature spotlight

Our market-leading analysis on ESG in credit and sustainable finance

Moody’s Ratings systematically and transparently integrates ESG factors into credit analysis and assigns independent opinions on entities’ sustainable financing plans.

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How we help

01 ESG insurance underwriting

ESG insurance underwriting

Moody's advanced insurance solutions include Environmental, Social, and Governance (ESG) factors to provide a comprehensive perspective of pivotal risks and net-zero underwriting and portfolio analysis based on the Partnership for Carbon Accounting (PCAF) standards.

We assess ESG risks and carbon emissions by combining public and private company data, indicators, and scores using a specialized framework and cloud-native technology. 

Our solutions help portfolio managers, underwriters, and sustainability officers to overcome the practical challenges of incorporating ESG and sustainability assessment and support compliance with reporting standards. 

Insurers use our platform to integrate their own view of ESG risk into their workflows and processes and to stay ahead in an evolving market.

More on ESG underwriting
02 Lending

Lending

Banks have a pressing need to incorporate ESG factors in risk-based credit decisions for commercial (SMEs, larger corporates) and retail (mortgages, loans, motor) lending portfolios while ensuring their portfolio planning and strategy is in line with ESG and climate related factors.

We help organizations to incorporate ESG data, scores, and screening into credit origination and assessment, loan portfolio management and monitoring, and reporting.

More on our Lending Suite solutions
03 Investing

Investing

We provide data and tools to investment professionals so they can identify, measure, and manage ESG risks as part of portfolio management and to inform investment decisions.

More on portfolio management
04 Disclosure and regulation

Disclosure and regulation

The reach of ESG regulations spans various regions and sectors and is steadily growing. This expansion enhances both the volume and level of detail in the information that corporations are required to disclose.

We help organizations enhance disclosure and compliance with regulatory requirements set forth by The International Sustainability Standards Board (ISSB), EU Taxonomy, The Sustainable Finance Disclosures Regulation (SFDR), Task Force on Climate-Related Financial Disclosures (TCFD), Pillar 3 Disclosure, and others.

More on regulatory calculation reporting
05 Supply chain risk

Supply chain risk

ESG within the supply chain brings both opportunities and risks, particularly in sustainability. Many companies' sustainability goals will be primarily achieved through suppliers, and climate event risks are a key concern in supplier risk management.

We integrate of ESG capabilities into supply chain due diligence to support the onboarding and monitoring of suppliers and third parties. This approach advances corporate sustainability goals while helping customers comply with regulatory reporting requirements.

More on supplier risk management
06 Foundational analysis

Foundational analysis

Leverage aggregated, rigorous risk analysis and sophisticated benchmarking tools to develop an integrated view of company and sector level ESG risks and opportunities.

More on Moody’s ESGView

ESG insurance underwriting

Moody's advanced insurance solutions include Environmental, Social, and Governance (ESG) factors to provide a comprehensive perspective of pivotal risks and net-zero underwriting and portfolio analysis based on the Partnership for Carbon Accounting (PCAF) standards.

We assess ESG risks and carbon emissions by combining public and private company data, indicators, and scores using a specialized framework and cloud-native technology. 

Our solutions help portfolio managers, underwriters, and sustainability officers to overcome the practical challenges of incorporating ESG and sustainability assessment and support compliance with reporting standards. 

Insurers use our platform to integrate their own view of ESG risk into their workflows and processes and to stay ahead in an evolving market.

More on ESG underwriting

Lending

Banks have a pressing need to incorporate ESG factors in risk-based credit decisions for commercial (SMEs, larger corporates) and retail (mortgages, loans, motor) lending portfolios while ensuring their portfolio planning and strategy is in line with ESG and climate related factors.

We help organizations to incorporate ESG data, scores, and screening into credit origination and assessment, loan portfolio management and monitoring, and reporting.

More on our Lending Suite solutions

Investing

We provide data and tools to investment professionals so they can identify, measure, and manage ESG risks as part of portfolio management and to inform investment decisions.

More on portfolio management

Disclosure and regulation

The reach of ESG regulations spans various regions and sectors and is steadily growing. This expansion enhances both the volume and level of detail in the information that corporations are required to disclose.

We help organizations enhance disclosure and compliance with regulatory requirements set forth by The International Sustainability Standards Board (ISSB), EU Taxonomy, The Sustainable Finance Disclosures Regulation (SFDR), Task Force on Climate-Related Financial Disclosures (TCFD), Pillar 3 Disclosure, and others.

More on regulatory calculation reporting

Supply chain risk

ESG within the supply chain brings both opportunities and risks, particularly in sustainability. Many companies' sustainability goals will be primarily achieved through suppliers, and climate event risks are a key concern in supplier risk management.

We integrate of ESG capabilities into supply chain due diligence to support the onboarding and monitoring of suppliers and third parties. This approach advances corporate sustainability goals while helping customers comply with regulatory reporting requirements.

More on supplier risk management

Foundational analysis

Leverage aggregated, rigorous risk analysis and sophisticated benchmarking tools to develop an integrated view of company and sector level ESG risks and opportunities.

More on Moody’s ESGView

Moody's ESGView

ESGView is a comprehensive platform leveraging Moody’s extensive ESG expertise and more than a century of trusted credit insights and analytics to aid you in gaining a clear and holistic view of foundational ESG risks and opportunities.

Learn more

News and views

research

Sep 23, 2024

 Moody's Ratings
Sharing climate investment cost with private sector can ease credit impact for governments

Among big economies, government debt would still rise considerably in South Africa, Brazil and India should the climate investment gap be filled in line with the current public-private financing mix. 

  • ESG risk
Read
research

Sep 19, 2024

 Moody's Ratings
Rise of emerging green technologies adds diversity in sustainable debt markets

Issuers are increasingly constructing sustainable bond frameworks to finance technologies such as carbon capture and low-emission hydrogen, reflecting heightened focus on carbon transition.

  • ESG risk
Read
infographic
Moody's
ESG screening data

Moody’s granular screening data identifies risk exposures and opportunities across dozens of ESG thematics.

  • ESG
Read more
article
Moody's
Responsible production risks curb benefits of supply-chain diversification for apparel

Apparel companies globally have implemented "China plus one" strategies by diversifying their supply chains into other emerging economies.

  • ESG
  • Supply chain
Read more
article
Moody's
Potential environmental liabilities from lead-sheathed cables are credit negative

Recent Wall Street Journal articles have drawn attention to potential environmental liabilities and regulatory penalties facing US telecom carriers because of lead-sheathed cables in the copper-based portions of the legacy Bell system of networks.

  • ESG
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article
Moody's
Panel debate: Enabling measurable action in the insurance underwriting ESG journey

There is currently significant momentum for the (re)insurance markets in relation to ESG, with the industry markedly increasing its focus on assessing risk through an ESG lens.

  • ESG
  • Insurance
Read more
case study
Moody's
ESG incidents: 2023 in review

Long term trends around inflation, societal polarization and digitalization continue to drive the prevalence of social incidents. As in 2022, Banks, Financial Services and Software sectors appear as the most exposed to ESG Incidents.

  • ESG
Read more

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Interested in learning more about our offerings? Our solutions specialists are ready to help.