Moody's ESG & Climate Risk

Moody’s ESG Solutions Group appoints global head of climate solutions

Moody’s Announces Environmental Sustainability Commitments

Sustainable decisions

Investors are looking for ways to generate positive investment outcomes and impact, while managing financial risks and returns. Our analysis helps the markets translate global sustainable development priorities into practical information and insights.

ROBERT FAUBER

Chief Operating Officer, Moody’s Corporation

Sustainability and climate change are fundamental considerations to seize opportunities and manage risk in today’s global capital markets. Our data and insights across Environmental, Social and Governance (ESG) and climate risks, as well as sustainable finance, can help you achieve the objectives of the sustainable development agenda.

Moody’s and ESG:
Advancing Global Standards

Moody’s ESG by the numbers*

30

Years of ESG Experience

Our affiliate V.E has been a pioneer in ESG analysis since the 1990s

5,000

ESG Assessments

Covering 273 unique ESG data points

260

Global Sustainable Bonds and Loans

Green, Social, Sustainability Bonds and Sustainability-linked loans and bonds

1 Million +

Climate Risk Scores

Spanning countries, counties, cities, companies & real estate assets globally

100

Systematic Integration of ESG Considerations into Credit Ratings

A detailed discussion is now required in all rating committees

1,500

MIS Research Reports

Related to ESG
considerations in YTD Sep-20,
70% COVID-related research

*As of 30 September 2020, combined for all Moody’s entities including affiliates.

ESG and Sustainability Milestones
Moody's is Committed 
to a Sustainable Future
We will continue to expand and enhance our efforts to integrate ESG best practices throughout our business and develop and promote globally consistent standards for assessing ESG risks and opportunities.

Moody’s Investors Service (MIS) Offerings
and Initiatives

Moody’s Corporation (MCO) and
Corporate Social Responsibility (CSR)
Initiatives / Disclosures

Moody’s Corporation (MCO) Acquisitions

Moody’s Corporation (MCO) joins the Financial Stability Board Task Force on Climate-related Financial Disclosures (TCFD)‍

MAY 2016

MIS becomes founding member of Principles for Responsible Investment's (PRI) ESG in Credit Risk and Ratings Initiative

MAY 2016

MARCH 2017

MIS launches specialized ESG analytical team

MIS becomes a partner in the Climate Bonds Initiative (CBI)

APRIL 2017

SEPTEMBER 2017

MIS becomes an associate member of the Institutional Investors Group on Climate Change (IIGCC)

MCO publishes inaugural Task Force on Climate-related Financial Disclosures (TCFD) Report

DECEMBER 2017

MARCH 2018

MIS joins sustainability non-profit Ceres and its Investor Network

MIS publishes General Principles for Assessing Environmental, Social and Governance Risks

JANUARY 2019

APRIL 2019

MCO acquires majority stake in V.E, global provider of ESG research and services

MCO becomes participant of
UN Global Compact (UNGC)
and signatory to Principles
for Responsible Investment (PRI)

JULY 2019

MCO acquires majority stake in Four Twenty Seven, leading provider of climate risk assessments and tools

MIS launches corporate governance assessment for publicly traded non-financial companies

JULY 2019

SEPTEMBER 2019

MIS launches framework to assess carbon transition risk for corporate sectors

MCO joins Advisory Council of the Green Bond Principles and Social Bond Principles

MCO publishes inaugural Sustainability Accounting Standards Board (SASB) Index

OCTOBER 2019

MCO acquires minority stake in SynTao Green Finance, leading service provider in green finance and responsible investment in China

OCTOBER 2019

NOVEMBER 2019

MCO joins the Prince's Accounting for Sustainability (A4S) and CFO Leadership Network

MCO signs the UN Global Compact Business Ambition for the 1.5°C Pledge committing to set science-based targets to reduce GHG emissions and reach net-zero emissions by no later than 2050

DECEMBER 2019

MCO named founding member of the United Nations Global Compact CFO Taskforce for the SDGs and joined the Reporting on the SDGs Action Platform

MCO joins environmental disclosure non-profit CDP 's Reporter Services

DECEMBER 2019

ESG and Sustainability Affiliations

Moody’s partners and sponsors events with a multitude of environmental, social and governance and corporate social responsibility (CSR) bodies that develop standards and/or frameworks for assessing a company’s or project’s sustainability performance. We also are members of a number of ESG-related industry associations and supranational organizations.

Highlighted Initiatives

All Affiliations

CDP

MCO joined CDP's Reporter Services network to demonstrate our commitment to transparency and accelerating leadership on environmental sustainability.

Principles for Responsible Investment (PRI)

MCO is a service provider signatory to the PRI and MIS engages on the ESG in Credit Risk and Ratings Initiative.

Sustainability Accounting Standards Board (SASB)

MIS is a SASB Alliance member and has committed to the integration of material sustainability information into existing processes, the development of standardized sustainability disclosure and the effective ESG integration into investment practices. MCO published its inaugural SASB Index in 2019.

Task Force on Climate-related Financial Disclosures (TCFD)

MCO was one of the first financial services companies to support and respond to the TCFD's recommendations. MCO reports in line with the TCFD framework and contributes to TCFD consultations on climate risk governance and disclosures.

United Nations Global Compact (UNGC)

MCO engages with the UNGC at the “Participant” level and on two “Action Platforms”: the CFO Taskforce for the SDGs and Reporting on the SDGs. MCO has also signed the Business Ambition for 1.5°C Pledge committing to setting science-based targets to reduce GHG emissions and reach net-zero emissions by no later than 2050.

Highlighted Memberships

Business Roundtable (BRT)

MCO is a member of the Business Roundtable and signed its Statement on the Purpose of a Corporation that emphasizes the responsibility of CEOs to lead their companies for the benefit of all stakeholders – customers, employees, suppliers, communities and shareholders, moving away from the concept of shareholder primacy.

Ceres

MCO is a member of both Ceres’ Investor Network and Ceres’ Company Network. These networks provide thought leadership to advance sustainability leadership throughout the economy.

Chief Executives for Corporate Purpose (CECP)

MCO engages across markets with CECP to build a better world through business by linking corporate purpose and social strategy to business strategy and performance.

The Prince’s Accounting for Sustainability Project (A4S)

MCO is an A4S signatory and has recently signed A4S’s CFO Net Zero Carbon Statement of Support.

All Affiliations

Asia Investor Group on Climate Change (AIGCC)

Asian Venture Philanthropy Network (AVPN)

Business Roundtable (BRT)

Business for Social Responsibility (BSR)

CDP

Ceres

CFA Institute

Chief Executives for Corporate Purpose (CECP)

Climate Bonds Initiative (CBI)