Provide four alternative pathways forecasting the physical and transition risks to the economy for more than 70 countries and 18,000 macroeconomic variables. The expansive scope of climate-related macroeconomic data allows organizations to analyze business impacts and stress test their portfolios for the risks posed by climate change.

What-if scenario modeling for quantifying the physical risk of assets, portfolios, and sovereigns due to extreme weather events like hurricanes and floods up to the year 2100.

Tools that translate climate pathways into financial risk variables to inform asset allocation and liability models. Based on Moody’s award-winning scenario generation software.

Analyze the credit risk of whole-loan residential mortgage portfolios and collateral pools underlying residential mortgage-backed security transactions. Our loan-level software incorporates thousands of macroeconomic paths and models, including the ability to account for climate-hazard specific outcomes to estimate probabilities of default and prepayment.

The first global framework to identify new sources of concentration risk driven by climate-related hazards and quantification of impacts. The framework enables more robust risk management processes, helping institutions meet both regulatory requirements worldwide and internal risk management policies.

Climate-adjusted probability of default (PD) for listed and unlisted companies powered by Moody’s award-winning Expected Default Frequency (EDF™) model.

Quantify the effects of ESG factors on credit ratings and integrating ESG factors into creditworthiness assessments.

Expressed on a five-point scale and based on our qualitative assessment of the impact of ESG considerations on the rating of an issuer or transaction. The CIS places ESG considerations in the context of the issuer’s other credit drivers that are material to a given rating. This includes an assessment of the exposure to climate risks and its impact on creditworthiness.

Each E, S and G Issuer Profile Score is expressed on a five-point scale and indicates our opinion of the extent to which a given issuer or transaction is exposed to E, S and G risks (incorporating ESG-specific mitigants) or benefits from its exposure to E, S or G.

Provide a qualitative assessment of the overall credit materiality of environmental risks for each sector globally. We regard environmental risks as material if they result in visible pressure on the credit profiles of a broad set of issuers, either today or in the foreseeable future. In assigning an overall score, we considered a sector’s exposure to environmental risks in their totality, as well as industrywide mitigants to these risks.

Research by Moody’s Investors Service shows that carbon transition positioning is becoming an increasingly important credit consideration, with some sectors already seeing a rapid transition in certain markets, while others face mounting pressure to articulate a trajectory to net zero emissions.