Climate risk isn’t about 2050 or 2030. As the impacts of climate change become more frequent and severe, this is about the here and now.
The fourth annual TCFD report shows more companies than ever are disclosing climate data but significant progress is still needed.
More frequent severe weather events have increased concern for the effects climate risk pose to commercial real estate.
Climate solutions for a sustainable future

Climate change is the greatest risk multiplier facing the world – and a $45+ trillion investment opportunity. As a global risk assessment firm with over 35 years’ ESG expertise, we can help you understand climate risk – and opportunity – and how it will shape the future of our economy and capital markets.

Market participants need better tools to help them assess net zero claims and evaluate transition readiness. Our products, data, and solutions help identify and evaluate climate risks – and unlock opportunities – through integration into capital allocation and long-term planning.

We offer a broad spectrum of climate solutions and insights, ranging from entity level information to macro level analytics; spanning identification and quantification of climate risk and readiness.

Risk Identification

Identify exposure to climate and environmental risk.

solutions covering
Global Economy, Sovereigns & Sub-Sovereigns
Sectors & Portfolios
Companies

Physical risk data on Sovereigns and Sub-sovereigns

Quantify exposure to floods, heat stress, hurricanes and typhoons, sea level rise, water stress and wildfires for locations globally, including 200 sovereigns and a wide range of global administrative and urban areas.

Moody’s ESG Solutions

ESG sovereign indicators

Assesses a country’s level of commitment to ESG-related goals and principles outlined in international agreements and conventions as well as the effectiveness of a country’s sustainability-linked actions.

Moody’s ESG Solutions

Physical and transition risk data on real assets

On-demand scoring of any point location globally on its exposure to physical climate hazards; and identify opportunities and costs associated with transitioning real estate to net zero

Moody’s ESG Solutions

Physical and transition risk data on companies

Forward-looking data that capture 1) exposure to physical climate hazards; transition risk exposure from different fossil fuel resource types and power generation technologies; and 2) companies’ risk disclosures, abilities to seize opportunities presented by climate change and plans to transition to net zero with the implications for the temperature alignment of portfolios.

Moody’s ESG Solutions

Carbon transition assessments

Determine how well companies’ business models align with the transition to a low carbon economy.

Moody’s Investors Service

Risk Quantification

Evaluate, manage, and mitigate climate risks and their impacts through scenario analysis, quantitative modelling and stress testing.

solutions covering
Global Economy, Sovereigns & Sub-Sovereigns
Sectors & Portfolios
Companies

Macroeconomic scenarios

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.

Moody’s Analytics

Climate-adjusted impact analysis

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.

RMS

Climate pathways 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.

Moody’s Analytics

Residential mortgage

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.

Moody’s Analytics

Portfolio concentration

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.

Moody’s Analytics

Climate-adjusted PDs

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

Moody’s Analytics

Impact on Credit Ratings

Quantify the effect of transition pathways on credit ratings and integrate climate factors into creditworthiness assessments.

solutions covering
Global Economy, Sovereigns & Sub-Sovereigns
Sectors & Portfolios
Companies

Credit
ratings

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

Moody’s Investors Service

ESG Credit Impact Scores

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.

Moody’s Investors Service

ESG Issuer Profile Scores

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.

Moody’s Investors Service

Environmental heat maps

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.

Moody’s Investors Service

Sector research

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.

Moody’s Investors Service

We are here you help you navigate climate risk and identify opportunities and solutions for a sustainable future

Speak with our experts
Moody’s recent acquisition of RMS, whose unmatched science, technology, and catastrophe risk models help insurers, reinsurers, and other organizations evaluate and manage the risk of natural and man-made disasters, will help us build an even more accurate picture of how catastrophe risks interact with economic risks, financial performance, and credit worthiness.
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CONTACT US FOR MORE INFORMATION
To learn more about our comprehensive solution suite that fulfils every ESG-related goal in risk management, equity and credit markets, please email MESG@moodys.com