More than a dozen rated companies face financial, legal and reputational risk over per- and polyfluoroalkyl substances (PFAS), also known as forever chemicals. This risk exposure is highest in the US, but increasing in other regions too. The main risk is the potential for a significant increase in financial liabilities related to drinking water contamination.

Sustainable bond issuance linked to gender equality goals is poised for long-term growth, driven by rising investor demand, mounting calls for gender diversity and pay-gap disclosures and growing awareness of the economic cost of gender inequities.

On 5 March, United Nations member states agreed to protect wildlife and biodiversity in 30% of the world's international waters by 2030. At least 60 countries must adopt and ratify the treaty before it can take effect. Although a growing focus on natural capital and biodiversity is raising policy risks for sectors with elevated exposure to these considerations, the treaty's ultimate credit effect will hinge on the implementation and enforcement of pledges at the country level.

The correlation between board gender diversity and credit quality is stronger in North America and Europe than in Latin America, the Middle East and Africa, and Asia-Pacific, according to our analysis of 3,000 rated companies. Higher-rated companies have a higher proportion of women on boards in most regions.

Moody’s Analytics new regional climate change forecasts shed light on the economic impact of this important long-term risk on all states, territories and metro areas in the U.S.

Sustainable project finance bank loans tend to have lower default rates than non-sustainable project finance bank loans, based on our analysis of the infrastructure, power, and oil and gas sectors. However, sustainability characteristics are not the principal driver of these differences.

Companies in different sectors have had limited credit implications from Peru's sociopolitical environment, but persistent unrest will imply greater damage to companies' credit metrics.

Our quantitative analysis shows social unrest can have credit effects on companies through financial market volatility, economic performance, and government fiscal and institutional strength.

Stabilizing macroeconomic conditions in Asia-Pacific countries, coupled with a policy and regulatory focus on green and transition finance, will bolster ESG-labeled bond volumes in 2023. We expect annual sustainable bond issuance in the region to total about $230 billion, rebounding from $205 billion in 2022, but still below the peak of $260 billion in 2021.

Last month, the Net Zero Insurance Alliance issued broad guidance for members on interim greenhouse gas emissions targets, recommending emissions reductions of 34% to 60% from 2019 levels by 2030. The guidance, set out in the alliance’s first target-setting protocol, is credit positive for (re)insurers because it will help them manage their underwriting exposure to carbon transition risk.

Mounting pressure on packaging companies to increase their use of post-consumer recycled content (PCR) in the US has the potential to weigh on sector margins because PCR is more expensive than virgin resin. While a jump in PCR demand would benefit solid waste management companies, their recycling investments have been modest to date and are unlikely to accelerate without a stronger push from regulators.

As global issuance of green, social, sustainability and sustainability-linked bonds swings back to growth this year, macroeconomic and market uncertainties and greater scrutiny over perceived greenwashing will temper the pace of recovery.