Moody’s ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Solutions Group announced today that Goldman Sachs Asset Management (GSAM) will use the company’s recently launched Sovereign Climate Risk Scores, powered by Moody’s affiliate Four Twenty Seven, for use in its ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. evaluation of sovereign risk.
Moody’s launched the Sovereign Climate Risk Scores in December 2020, aiming to provide a dataset offering a detailed view of the future exposure of the global population, the economy, and agriculture to a range of physical climate hazards. According to Moody’s, the scores are the only known dataset matching physical climate risk exposure to population location, GDP (Purchasing Power Parity) and agricultural areas within countries, with detailed metrics including both percent exposed and total amount exposed to each climate hazard.
Moody’s has recently released several solutions measuring and analyzing sustainability and ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. related risks to sovereigns, including the launch of two new ESG scores in January, measuring sovereigns’ credit exposure to ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. factors, and the effect of ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. on default risk.
Emilie Mazzacurati, Global Head of Moody’s Climate Solutions in Moody’s ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Solutions Group, said:
“Understanding exposure to physical climate hazards is critical for investors and credit institutions in order to price climate risk, and also to help direct finance flows towards adaptation and resilience where they’re most needed. We’re extremely pleased that Goldman Sachs has chosen to use our new dataset to enhance its ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. evaluation of sovereign risk.”
According to Moody’s, GSAM has selected the dataset as an input to its own proprietary Sovereign ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. framework, combining the tool’s assessment of climate risk exposure with qualitative analysis by Goldman Sachs’ investment teams on countries’ capacities to adapt to physical risks.
Prakriti Sofat, Executive Director at Goldman Sachs Asset Management, said:
“Sovereign bonds are an integral part of our fixed income portfolios, but intrinsic uncertainties make it challenging to quantify the long-term impact of climate change on countries. Using this dataset will help us assess this evolving risk and reflect it in our investment decisions.”
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