Dive into our latest insights and analysis on the key trends shaping ESG, climate and sustainable finance globally
More than a dozen rated companies face financial, legal and reputational risk over per- and polyfluoroalkyl substances (PFAS), also known as forever chemicals. This risk exposure is highest in the US, but increasing in other regions too. The main risk is the potential for a significant increase in financial liabilities related to drinking water contamination.
Sustainable bond issuance linked to gender equality goals is poised for long-term growth, driven by rising investor demand, mounting calls for gender diversity and pay-gap disclosures and growing awareness of the economic cost of gender inequities.
On 5 March, United Nations member states agreed to protect wildlife and biodiversity in 30% of the world's international waters by 2030. At least 60 countries must adopt and ratify the treaty before it can take effect. Although a growing focus on natural capital and biodiversity is raising policy risks for sectors with elevated exposure to these considerations, the treaty's ultimate credit effect will hinge on the implementation and enforcement of pledges at the country level.
The correlation between board gender diversity and credit quality is stronger in North America and Europe than in Latin America, the Middle East and Africa, and Asia-Pacific, according to our analysis of 3,000 rated companies. Higher-rated companies have a higher proportion of women on boards in most regions.
Moody’s Analytics new regional climate change forecasts shed light on the economic impact of this important long-term risk on all states, territories and metro areas in the U.S.
Sustainable project finance bank loans tend to have lower default rates than non-sustainable project finance bank loans, based on our analysis of the infrastructure, power, and oil and gas sectors. However, sustainability characteristics are not the principal driver of these differences.