Amid increasingly extreme weather events and growing awareness of the severity of climate change, investors, banks, insurers and companies must identify, quantify and manage their climate-related risks.
Moody’s ESG Solutions integrates forward-looking, location-specific and globally comparable climate data into our world-class economic and financial risk models. We help organizations navigate the financial and social impacts of climate change and seize new opportunities for value creation.
Empower your organization to make resilient decisions and contribute to a better future.
With Moody's ESG Solutions, you can
Leverage physical and transition risk scores to identify high-risk holdings and drive stress testing
Respond to reporting requirements using portfolio summary statistics and climate risk metrics
Inform investments and risk management with science-driven, asset level data of climate risk exposure
Our Comprehensive Offering
Climate Risk Identification
Physical Risk Data
Forward-looking data capturing exposure to climate hazards for: 10,000 listed companies with 3m corporate facilities globally; 17m commercial real estate properties in the US; global sovereigns and sub-sovereigns. On-demand scoring is available.
Transition Risk Data
Assessment of 10,000 companies to identify transition risk exposure from different fossil fuel resource types and power generation technologies. On-demand scoring is available.
Climate Risk Quantification
Climate-adjusted macroeconomic forecasts with an 80-year horizon. Fully aligned with the Network for Greening the Financial System’s (NGFS) representative scenarios for physical and transition risk.
Climate-adjusted probability of default (PD) for listed and unlisted companies powered by Moody’s award-winning Expected Default Frequency (EDF™) model.
Climate Pathway Scenarios
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.
Solutions to help you manage climate risk
- Integrate physical and transition risk into investment analysis, due diligence and security screening
- Create funds and investment products based on positive and negative screening for climate risk and transition preparedness
- Screen Commercial Real Estate assets for exposure to climate hazards pre-acquisition and monitor on an ongoing basis
- Report accurately on portfolio performance and regulatory alignment (e.g. with the TCFD)
- Better inform engagements with stakeholders and investee companies on their climate risk targets and strategies
- Integrate physical and transition risk into investment analysis, due diligence and screening, lending and underwriting (including at the location and asset levels)
- Prepare for climate change stress tests and understand a range of potential impacts of climate change on economies for risk management
- Identify climate-related risks in commercial and residential mortgage portfolios. Assess climate risks into loan acquisition processes
- Report on lending portfolio climate performance (e.g. as per TCFD recommendations)
- Better inform credit and lending discussions with prospective clients
- Assess physical risk profile of existing and prospective facilities and locations
- Understand existing and potential climate-related risks in supply chains
- Engage with existing suppliers to actively improve transition strategy and performance
- Compare emissions targets and decarbonization efforts against sector peers
- Integrate aggregated climate risk scores into national or regional risk strategies and climate-hazard initiatives
- Assess the risk profiles of specific locations, assets, companies, and public entities
- Perform positive and negative screening to identify companies most suitable for climate or transition-related financial stimulus