The ESG in Sovereign Credit Ratings webinar was part of the IIF ESG Webinar Series, which was designed to promote understanding of the rapidly evolving landscape for ESG disclosure and to align efforts to measure and track climate finance.
The pandemic has brought social and governance considerations in sharp relief. The focus on ESG factors is set to intensify, including scrutiny on disasters preparedness, social inequality and quality of governance. This structural move has significant implications on sovereign credit ratings. We discussed with Marie Diron from Moody’s how ESG factors could lead to a marked differentiation between sovereigns in terms of exposure to risk factors including climate change, carbon transition, water management, health and safety, demographics, and quality of governance amongst others. The discussion also focused on Moody’s approach to assess sovereigns’ capacity to respond and adjust to these risks and its implications for sovereign ratings.
- Marie Diron, Managing Director—Sovereign and Sub-Sovereign Risk, Moody’s Investors Service
- Sonja Gibbs, Managing Director and Head of Sustainable Finance, IIF