The shift to a low-carbon economy will lead to significant changes for many industries, presenting new risks, known as transition risks, as well as opportunities. Banks face not only direct impacts financially from transition risk but are also exposed to reputational, policy and technological risk directly correlated with the transition to a low-carbon economy.

In Asia-Pacific (APAC), total cumulative GSSS bond issuance reached US$700 billion at the end of June 2022. APAC issuers are diversifying into social, sustainability, and sustainability-linked (SLBs) bonds from traditional green bonds. Financing social projects via issuance of social bonds or sustainability bonds will focus on addressing public health and socioeconomic issues. Green and transition financing will continue to grow moving forward despite market headwinds in 2022.

Moody’s is committed to achieving net-zero across its operations and creating products and services that accelerate a net-zero economy.

Disclosing our diversity is critical to holding our organization accountable in the efforts to build a more inclusive workforce.

Over the past few years, we have expanded our ESG offering and integrated ESG into existing capabilities. We also continued to make strategic investments so that our offering provides the depth and breadth necessary to respond to the diverse and evolving requirements of ESG market participants.

In 2021, ESG risks were cited in 78% of our public-sector rating actions and 77% of our private-sector rating actions. This partly reflects the impact of COVID-19, which has increased social risk and highlighted the importance of sound governance.