Moody’s, the bond credit rating agency, recently published two new reports, their global assessment of how environmental risks affect credit ratings and a report that shows how these risks vary across industry sectors (registration required to view).
It’s great to have both reports published because one can see how Moody’s approaches the data and then the results of applying their assessment standards.
Essentially, the agency looked at direct environmental impacts AND consequences of regulatory/policy impacts, crunched those numbers with materiality and timing projections, and, voila – they’ve published a risk profile by industry of 86 global sectors.
The highest risk sectors are projected to hold more than $2 trillion in debt with material credit exposure to environmental risk.
Which sectors are at the highest level of risk? Of course, coal is up there on the top, but some of the others are bound to surprise you.
Check out Moody’s assessments and let us know if you see any surprises on the high-risk list.