{"id":412929,"date":"2020-12-14T15:29:42","date_gmt":"2020-12-14T20:29:42","guid":{"rendered":"https:\/\/www.investmentexecutive.com\/?p=412929"},"modified":"2020-12-14T15:33:38","modified_gmt":"2020-12-14T20:33:38","slug":"environmental-risks-on-the-rise-moodys","status":"publish","type":"post","link":"https:\/\/www.investmentexecutive.com\/news\/research-and-markets\/environmental-risks-on-the-rise-moodys\/","title":{"rendered":"Environmental risks on the rise: Moody’s"},"content":{"rendered":"

Environmental risks are becoming significant to a growing crop of corporate issuers, Moody’s Investors Service says in a new report.<\/p>\n

The rating agency said the prospect of a shift to a low-carbon economy represents a very high, or high, environmental risk to 13 sectors, representing a combined US$3.4 trillion in rated debt.<\/p>\n

The amount of debt held by sectors facing high risk is up 49% from 2018, and up 64% from 2015, Moody’s said.<\/p>\n

For instance, the rating agency said the integrated oil and gas sector and the auto parts supply sector have moved from the moderate risk category to high risk since 2018.<\/p>\n

The report is based on a review of 89 global sectors, with a total US$79 trillion of rated debt.<\/p>\n

Additionally, Moody’s said sectors representing US$8.7 trillion in debt have exposure to both transition and physical climate risks.<\/p>\n

\u201cOur analysis shows that $8.7 trillion, or 11% of Moody’s total rated debt globally, is inherently exposed to heightened climate risk,\u201d said Ram Sri-Saravanapavaan, assistant vice-president and analyst at Moody\u2019s.<\/p>\n

\u201cThis highlights the likelihood that the impact of climate risk on issuers’ credit profiles will continue to grow as the transition to a low-carbon economy accelerates and the adverse effects of physical climate change become more evident,\u201d he said.<\/p>\n

In terms of individual environmental risk categories, Moody’s said 18 sectors with US$7.2 trillion in debt are facing physical climate risk, 16 sectors with US$4.5 trillion in debt have carbon transition risk, and waste and pollution risk affects 18 sectors with US$5.2 trillion in debt.<\/p>\n","protected":false},"excerpt":{"rendered":"

The amount of debt held by sectors facing high climate-related risk is up 49% from 2018<\/p>\n","protected":false},"author":147314,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2312,2313],"tags":[54454,2784],"yst_prominent_words":[11417,74057,74056,74055,74054,74053,72109,50007,25203,18978,16530,13633,11007,9961,8833,7157,6750,6652,5274,5065],"acf":[],"_links":{"self":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/412929"}],"collection":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/users\/147314"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/comments?post=412929"}],"version-history":[{"count":4,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/412929\/revisions"}],"predecessor-version":[{"id":412948,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/412929\/revisions\/412948"}],"wp:attachment":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/media?parent=412929"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/categories?post=412929"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/tags?post=412929"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/yst_prominent_words?post=412929"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}