Please see our latest Environmental, Social and Governance (ESG) report attached. The report considers a potential shift in climate policy in the US and possible effects on global carbon reduction efforts.
Key points from the report:
- Institutional and private sector forces will underpin global decarbonisation efforts despite potential changes in US climate policy.
- Most countries have reaffirmed their Paris Agreement commitments since the US elections.
- Sub-national green initiatives will be important in moving national policies forward, including in the US.
- Institutional focus on environmental risks and green finance will remain strong.
- The number of private sector companies pursuing climate change strategies will continue to rise.
- Prevailing market and technological trends support investment in less carbon intensive initiatives.
The report concludes that institutional and private sector momentum will continue to drive sustainable and climate agendas forward. As such, the effects of carbon transition will continue to have material credit implications for rated entities in a number of industrial sectors globally. In addition, more than two dozen US states have programmes to reduce emissions, providing a countervailing influence to any federal climate policy changes.
This is the latest in Moody’s series of reports on ESG. Should you wish to view previous publications, please follow this link to access the dedicated ESG page on our website from this link: Dedicated Topic Page: Environmental Risks and Developments