In a recent interview with Environmental Finance, Rahul Ghosh, the managing director and global head of sustainable finance at Moody’s Ratings, emphasizes the importance of transparency in assessing environmental, social, and governance (ESG) impacts. Ghosh highlights that the complexity of climate and other ESG factors makes it crucial for investors to have clear information on how these issues affect credit quality. Companies that are transparent about their sustainability strategies can mitigate potential risks as investor and regulatory focus in this area intensifies.
Moody’s Ratings is actively promoting transparency in the industry by expanding their toolkit to provide extensive information on incorporating ESG considerations into credit analysis. They have published an ESG general principles methodology and introduced ESG credit scores to help investors understand the overall impact of these considerations on credit ratings. By offering transparency through their tools and platforms, Moody’s Ratings aims to demonstrate how ESG issues are translating into credit outcomes and helping investors measure and benchmark ESG exposure and risk within their credit portfolios.
As Moody’s Ratings continues to enhance its sustainable finance solutions and services, they are focusing on providing high-quality insights to market practitioners. They are expanding their second-party opinion (SPO) business globally to meet the rising demand for sustainable debt. Additionally, Moody’s Ratings has introduced a net zero assessment (NZA) to assess companies’ greenhouse gas reduction plans, emphasizing the importance of implementation plans in achieving sustainability goals. By offering these innovative solutions, Moody’s Ratings aims to help investors and stakeholders identify companies likely to adapt or thrive in a low-carbon future.
