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Climate risk

Climate risk is a business risk.

When uncertainty complicates your risk planning and investment strategies, our robust data and trusted insights empower your business to make better decisions and navigate climate risk with confidence.

Moody’s helps translate relative risk into financial impact.

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What we do

Climate risk is complex, and it's important to understand the impact it can have on your bottom line. Understanding the complexity of climate risk can improve the speed and quality of your organization's decision making.

01
Navigate the interconnected risks of climate change

Develop a holistic view of climate risk and act with confidence by considering the impacts of climate risk on credit ratings, debt markets, global macroeconomic outlooks, and market competition.

02
Stay ahead of physical climate-related costs and disruption

Quantify the financial costs of potential damage and disruption to your facilities, infrastructure, or customer assets from climate events.

03
Plan through the transition to a lower carbon economy

Evaluate the potential effects of emerging policies and regulations, new competition, changes in your supply chain, and evolving shareholder and customer demands.

Get in touch

Speak to our team today

Get in touch

How we help

01 Climate risk solutions

Climate risk solutions

Moody’s climate risk solutions help your company to assess the interconnected risks from climate change and empowers you to make informed risk management decisions within your existing workflows.

We apply our financial intelligence to deliver insight on macroeconomic and financial market variables (overlaid with physical and transition risk variables) that inform near-, mid-, and long-term risk. We also tailor our analytics to address segment and location-specific pressures from climate change, so you can calculate risks and identify opportunities.

Our purpose-built solutions allow you to integrate climate risk insight into your risk management workflows. These include stress testing, risk disclosure and regulatory reporting, investment decisioning, and more.

More about climate solutions in banking
More about climate solutions in insurance
02 Climate analytics

Climate analytics

Climate risk analytics are robust tools that allow you to financially quantify climate risk and opportunity.

Using these tools, you can analyze the potential damage and disruption of chronic and acute physical climate risks through industry-specific lenses. They also help you understand the financial implications of transitioning to a lower carbon economy.

Our science-informed solutions are delivered through cutting-edge technology. These platforms have intuitive applications that provide a full view of climate risk and enhance each step of the risk management process.

More about Climate on Demand
More about Moody’s climate within PortfolioStudioᵀᴹ
More about ESGView
03 Climate models and data

Climate models and data

Our physical and transition risk modeling and data help you seamlessly integrate our expertise on the financial and market impacts of climate risk into your current risk management workflows, tools, and reporting.

We provide flexible modeling and data options that allow you to layer our insights into established approaches and operationalize climate risk to improve decision making. We also forecast physical and transition risks to the economy for over 70 countries and all U.S. states and metro areas. 

Our robust models integrate future climate change scenarios, real data on climate event costs from physical asset damages, on-the-ground engineering assessments after major disasters, structural engineering and design models to measure physical risk, and more.

More about Moody’s RMS climate change models
More about Moody’s economic scenarios for climate change

Climate risk solutions

Moody’s climate risk solutions help your company to assess the interconnected risks from climate change and empowers you to make informed risk management decisions within your existing workflows.

We apply our financial intelligence to deliver insight on macroeconomic and financial market variables (overlaid with physical and transition risk variables) that inform near-, mid-, and long-term risk. We also tailor our analytics to address segment and location-specific pressures from climate change, so you can calculate risks and identify opportunities.

Our purpose-built solutions allow you to integrate climate risk insight into your risk management workflows. These include stress testing, risk disclosure and regulatory reporting, investment decisioning, and more.

More about climate solutions in banking
More about climate solutions in insurance

Climate analytics

Climate risk analytics are robust tools that allow you to financially quantify climate risk and opportunity.

Using these tools, you can analyze the potential damage and disruption of chronic and acute physical climate risks through industry-specific lenses. They also help you understand the financial implications of transitioning to a lower carbon economy.

Our science-informed solutions are delivered through cutting-edge technology. These platforms have intuitive applications that provide a full view of climate risk and enhance each step of the risk management process.

More about Climate on Demand
More about Moody’s climate within PortfolioStudioᵀᴹ
More about ESGView

Climate models and data

Our physical and transition risk modeling and data help you seamlessly integrate our expertise on the financial and market impacts of climate risk into your current risk management workflows, tools, and reporting.

We provide flexible modeling and data options that allow you to layer our insights into established approaches and operationalize climate risk to improve decision making. We also forecast physical and transition risks to the economy for over 70 countries and all U.S. states and metro areas. 

Our robust models integrate future climate change scenarios, real data on climate event costs from physical asset damages, on-the-ground engineering assessments after major disasters, structural engineering and design models to measure physical risk, and more.

More about Moody’s RMS climate change models
More about Moody’s economic scenarios for climate change

Who we help

01 Banking

Banking

Our solutions help banks incorporate a full view of climate risk into their workflows. The result: effective risk management strategies for greater resilience and growth.

Banks use our data and analytics to evaluate the impact of physical and transition risks on creditworthiness and the likelihood of default for credit exposures.

Our climate risk solutions encompass loan decisioning, portfolio planning and stress testing, along with disclosures and regulations.

More on banking
More on climate risk in banking
02 Insurance

Insurance

Our climate risk solutions empower insurance providers, brokers, and reinsurers to assess interconnected physical and transition risk across the life, property, and casualty markets.

Insurers incorporate our robust data and analytics to assess climate-related risks and effects on asset and liability projections. They also use our insights to align financial analysis with emerging accounting, reporting, and disclosure requirements including the Principles of Carbon Accounting Financials (PCAF).

Our solutions enhance risk and capital management strategies and guide scenario choices for Own Risk and Solvency Assessment (ORSA), Task Force on Climate-Related Financial Disclosures (TCFD), International Sustainability Standards Board (ISSB), Corporate Sustainability Reporting Directive (CSRD), and other stress testing.

More on insurance
More on climate risk in insurance
03 Corporations

Corporations

Our climate solutions empower corporations across various domains, including energy, retail, and information technology.

Businesses incorporate our data and analytics to strengthen their climate and sustainability strategies. They also use our insights to comply with evolving disclosure and reporting requirements like the Sustainable Finance Disclosure Regulation (SFDR) and Corporate Sustainability Reporting Directive (CSRD).

Our global, regional, and site-level insights into climate-related exposures help companies manage supply chain risk and assess the climate impact on credit profiles.

More on corporations
More on climate risk scores for CRE
04 Public sector

Public sector

Our climate solutions empower government agencies across various domains, including federal, regional, and local entities.

Government agencies incorporate our knowledge and insights, transparent modeling, and rigorous data to assess the significance of climate risk and expand risk management frameworks.

Our global, regional, and local views on carbon emissions and insights into related macroeconomic and credit effects help government agencies evaluate climate transition risks with clarity.

More on public sector
05 Buy-side

Buy-side

Our climate solutions empower investors to expand their perspective on investing with insights into climate risk.

Investors can use our trusted data, metrics, and tools to measure, benchmark, and manage climate-related exposure and risk within investment portfolios.

Our robust climate data and analytics support investors in climate analysis and generating information required for Task Force on Climate-Related Financial Disclosures (TCFD). Our solutions also help investors improve transaction due diligence and screening in key areas like real estate investment.

More on portfolio management

Banking

Our solutions help banks incorporate a full view of climate risk into their workflows. The result: effective risk management strategies for greater resilience and growth.

Banks use our data and analytics to evaluate the impact of physical and transition risks on creditworthiness and the likelihood of default for credit exposures.

Our climate risk solutions encompass loan decisioning, portfolio planning and stress testing, along with disclosures and regulations.

More on banking
More on climate risk in banking

Insurance

Our climate risk solutions empower insurance providers, brokers, and reinsurers to assess interconnected physical and transition risk across the life, property, and casualty markets.

Insurers incorporate our robust data and analytics to assess climate-related risks and effects on asset and liability projections. They also use our insights to align financial analysis with emerging accounting, reporting, and disclosure requirements including the Principles of Carbon Accounting Financials (PCAF).

Our solutions enhance risk and capital management strategies and guide scenario choices for Own Risk and Solvency Assessment (ORSA), Task Force on Climate-Related Financial Disclosures (TCFD), International Sustainability Standards Board (ISSB), Corporate Sustainability Reporting Directive (CSRD), and other stress testing.

More on insurance
More on climate risk in insurance

Corporations

Our climate solutions empower corporations across various domains, including energy, retail, and information technology.

Businesses incorporate our data and analytics to strengthen their climate and sustainability strategies. They also use our insights to comply with evolving disclosure and reporting requirements like the Sustainable Finance Disclosure Regulation (SFDR) and Corporate Sustainability Reporting Directive (CSRD).

Our global, regional, and site-level insights into climate-related exposures help companies manage supply chain risk and assess the climate impact on credit profiles.

More on corporations
More on climate risk scores for CRE

Public sector

Our climate solutions empower government agencies across various domains, including federal, regional, and local entities.

Government agencies incorporate our knowledge and insights, transparent modeling, and rigorous data to assess the significance of climate risk and expand risk management frameworks.

Our global, regional, and local views on carbon emissions and insights into related macroeconomic and credit effects help government agencies evaluate climate transition risks with clarity.

More on public sector

Buy-side

Our climate solutions empower investors to expand their perspective on investing with insights into climate risk.

Investors can use our trusted data, metrics, and tools to measure, benchmark, and manage climate-related exposure and risk within investment portfolios.

Our robust climate data and analytics support investors in climate analysis and generating information required for Task Force on Climate-Related Financial Disclosures (TCFD). Our solutions also help investors improve transaction due diligence and screening in key areas like real estate investment.

More on portfolio management

Events

17
Sep
event

11:00 ET
Climate-proofing your credit portfolio – Why it matters and how to approach it

Join us for an expert-led session on integrating climate considerations into credit portfolio management. Gain practical insights from EY, TD, and Moody’s on global trends, real-world applications, and the growing importance of climate scenario analysis for informed, profitable portfolio planning.

Register

Watch on-demand

webinar
Navigate climate reporting challenges amid changing regulatory landscape

Join us and gain valuable insights into how regulations from the SEC for the US, B-15 for Canada, CSRD for Europe and various climate risk stress testing requirements for APAC are shaping reporting approaches across organizations.

Watch now
webinar
The financial costs and effects of climate change

Join Moody’s for a virtual round table discussion to explore how modeling the physical risks to your real asset portfolio can help your teams evaluate potential costs from damages and business disruption, plus the implications of changing perceptions on insurability due to climate change.

Watch now
webinar
Discover new financial impact quantification capabilities

Join Moody's experts to learn about the methods for modeling financial impacts from physical risks to real assets.

Watch now
webinar
Assessing exposure to physical climate risk

Physical climate risk manifests as both weather events and gradual changes, each of which pose unique challenges to owners and managers of buildings, homes, and other facilities across the country. Customers need to face these challenges by considering how such properties will be affected, and the resiliency measures available to them.

Watch now

News and views

article
Moody's
Lessons learned in climate scenario analysis by the Federal Reserve: A pathway to robust modelling of climate risk in credit portfolios

In order to understand and enhance climate risk management practices in banks, the FRB arranged an exploratory climate scenario analysis (CSA) exercise for the loan portfolios of six of the largest US banks.

  • Climate
  • Macro economics
Read more
article
Moody's
The impact of climate change on U.S. subnational economies

Moody’s new regional climate change forecasts shed light on the economic impact of this significant long-term risk on all states, territories, and metro areas in the United States.

  • Climate
  • Macro economics
Read more
article
Moody's
Climate impact on mortgage credit losses—a portfolio example

Mortgage lenders, servicers, and regulators are becoming increasingly aware of the credit risks associated with severe weather events brought on by climate change.

  • Climate
Read more
article
Moody's
Quantifying the financial impact of climate risk with Moody’s Climate on Demand

Climate change is widely accepted as the next great integrated risk challenge. To ensure long-term economic resilience, a wholly robust and comprehensive approach for estimating climate impacts will be required, one that captures real asset losses as well as distributive business interruptions.

  • Climate
Read more
article
Moody's Ratings
Environmental heat map: Sixteen sectors with $4.3 trillion in rated debt face heightened environmental credit risk

Moody’s newly updated heatmap of environmental risk finds that rated debt held by sectors with heightened environmental credit risk has more than doubled since the Paris Agreement was unveiled in 2015.

  • Climate
  • Credit risk
Read more
whitepaper
Moody's
Climate scenario analysis for the life insurance sector

To make informed decisions, build resilience, and address regulations, life insurers need modeling and scenario analysis to understand the effects of climate change on their business.

  • Climate
  • Insurance
Read more
article
Moody's Ratings
Reinsurers defend against the rising tide of natural catastrophe losses, for now

Climate change, which has led to increased frequency and severity of weather-related natural catastrophes, poses a significant risk to insurers and reinsurers.

  • Climate
  • Insurance
Read more
article
Moody's
Understanding future risks of climate change

In this video interview, Robert Muir-Wood, Chief Research Officer at Moody's Risk Management Solutions (RMS), introduces the company's key initiatives in environmental risk modeling and climate change adaptation measures and discusses the role of the company in the global efforts to achieve a net-zero future.

  • Climate
  • Insurance
Read more

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Speak to our team

Interested in learning more about our offerings? Our solutions specialists are ready to help.