Bridging the ESG Disclosure Data Gap and Accounting for Climate Risks in Corporate Credit Analysis Gap

Time: Tuesday, October 12, 2021 - 10:30am to 11:30am
Level: Beginner/Intermediate
Room: Grand Ballroom A

About

In this session we will present Moody's Analytics latest solutions in two fields: ESG assessment under incomplete information and climate risk-adjusted credit analysis. While ESG scores can be assigned through a direct in-depth company assessment, there are many instances where only limited company information is available, especially for mid- and small-caps. We have developed analytics to build ESG score estimates and bridge the ESG disclosure data gap. During this session we will briefly describe the methodology and present a case study on SMEs. Climate-change driven credit risk is becoming an every-increasing topic for risk managers, particularly in the energy sector. We will begin by giving a brief overview of MA's solutions for quantifying physical and carbon transition risk for corporates. We will then share practical insights from this analysis regarding the distributions of climate-induced credit risk across regions, sectors, and individual names.

1 hr CPE - Credit Finance

Objectives

  • A deep dive and case study of ESG and climate change and the impacts on credit departments.