ESG risk

Moody's advanced insurance solutions include Environmental, Social, and Governance (ESG) factors to provide a comprehensive perspective of pivotal risks and net-zero underwriting and portfolio analysis based on the Partnership for Carbon Accounting (PCAF) standards.

We assess ESG risks and carbon emissions by combining public and private company data, indicators, and scores using a specialized framework and cloud-native technology. 

Our solutions help portfolio managers, underwriters, and sustainability officers to overcome the practical challenges of incorporating ESG and sustainability assessment and support compliance with reporting standards. 

Insurers use our platform to integrate their own view of ESG risk into their workflows and processes and to stay ahead in an evolving market.

Banks have a pressing need to incorporate ESG factors in risk-based credit decisions for commercial (SMEs, larger corporates) and retail (mortgages, loans, motor) lending portfolios while ensuring their portfolio planning and strategy is in line with ESG and climate related factors.

We help organizations to incorporate ESG data, scores, and screening into credit origination and assessment, loan portfolio management and monitoring, and reporting.

We provide data and tools to investment professionals so they can identify, measure, and manage ESG risks as part of portfolio management and to inform investment decisions.

The reach of ESG regulations spans various regions and sectors and is steadily growing. This expansion enhances both the volume and level of detail in the information that corporations are required to disclose.

We help organizations enhance disclosure and compliance with regulatory requirements set forth by The International Sustainability Standards Board (ISSB), EU Taxonomy, The Sustainable Finance Disclosures Regulation (SFDR), Task Force on Climate-Related Financial Disclosures (TCFD), Pillar 3 Disclosure, and others.

ESG within the supply chain brings both opportunities and risks, particularly in sustainability. Many companies' sustainability goals will be primarily achieved through suppliers, and climate event risks are a key concern in supplier risk management.

We integrate of ESG capabilities into supply chain due diligence to support the onboarding and monitoring of suppliers and third parties. This approach advances corporate sustainability goals while helping customers comply with regulatory reporting requirements.

Leverage aggregated, rigorous risk analysis and sophisticated benchmarking tools to develop an integrated view of company and sector level ESG risks and opportunities.