Credit ratings, research, and risk analysis provider Moody’s Investors Service announced today that it has expanded its ESG profile and credit impact scores to a series of new industries, including airlines, restaurants, and gaming companies.

Moody’s integrates ESG considerations into the credit analysis of the companies, including each entity’s risk exposure and the degree of credit impact. The reports include two types of ESG scores, including issuer profile scores (IPS) and credit impact scores (CIS). IPS scores measure issuer’s exposure to ESG considerations that could be material to credit risk, while CIS gauges the impact those ESG considerations have on an issuer’s credit rating.

Moody’s initially launched the scores in January 2021, initially focusing on sovereign issuers, and has expanded its coverage over the past year, adding sectors ranging from healthcare, utilities, media and automakers to states, cities and counties.

In its reports introducing the scores, Moody’s provided its overall assessment for each of the sectors. For the airline companies, Moody’s said that ESG considerations have a moderately negative impact on credit, driven primarily by the sector’s exposure to carbon transition risk, which creates risk exposure due to the limited ability of the airlines to lower CO2 emissions, while social pressure for emissions reductions gains momentum, and governments may potentially increase regulations around emissions from aircraft.

For most restaurant and gaming company’s Moody’s found that ESG considerations have a negative impact. Restaurants’ impact was driven by factors including social trends to accommodate healthier diets and lifestyles, the potential of food borne illness and supply chain challenges, as well as moderately negative exposure to environmental considerations ranging from reliance on agriculture and protein products such as beef, chicken and pork. Gaming companies face elevated social risks, ranging from shifting cultural preferences away from casino-style gaming to the potential for gaming to be used as a channel to launder money and a tightening regulatory environment aimed at protecting players from gambling addiction.