This edition highlights thematic research on the impact of ESG considerations on credit markets and the growth of sustainable finance globally.

The investment in STGF aligns with Moody’s ongoing global commitment to promoting transparent standards for evaluating ESG risks. Locally, the investment strengthens Moody’s presence and engagement in China and its financial markets, with a focus on supporting long-term, sustainable growth and contributing to the healthy development of ESG markets.

Local government exposure to projected heat stress varies widely by geography. Data from climate intelligence firm Four Twenty Seven and Moody’s indicate that the Southeast and Midwest have more debt exposed than other regions.

Sectors facing high social risk can be broadly grouped into four categories: emerging market governments; healthcare and education sectors; heavy industries reshaped by environmental and social forces; and consumer sectors at risk of socially driven regulatory tightening.