Our heat map assesses the environmental risk exposure of 84 sectors globally, with $74.6 trillion in rated debt. We find that 11 sectors with $2.2 trillion in rated debt have elevated credit exposure. For these sectors, environmental risks are either already material to credit quality or could be over the next three to five years.

Moody's Investors Service is seeking feedback from market participants on its proposed new cross-sector methodology for assessing environmental, social and governance (ESG) risks. The methodology would describe Moody's general principles for assessing ESG risks in its credit analysis globally and apply to all issuers.

In the first episode of our new podcast series Moody's Talks - Infrastructure Finance, analysts Paul Marty and Graham Taylor discuss a significant shift now taking place in the carbon market in Europe.

ESG risks are a key part of Moody's sovereign risk assessments, affecting economic, institutional and fiscal strength and susceptibility to event risks.