Moody’s ESG Solutions Group announced today the launch of Climate Solutions, a new product suite aimed at providing market participants, including banks, insurers and investors, with enhanced risk measurement and evaluation tools to better understand, quantify and manage climate risks and opportunities.

Powered by Moody’s affiliate companies including climate risk-focused market intelligence provider Four Twenty Seven and ESG research, data and assessments provider V.E., Climate Solutions incorporates physical and transition risk into Moody’s risk management solutions and economic models to enable market participants to better assess climate risks and comply with the emerging regulatory requirements for stress testing and disclosures.

esg playbook

Mark Kaye, Chief Financial Officer and Executive Sponsor of Moody’s ESG Solutions Group, said:

“Climate change has a profound impact on the world’s economies and societies. Moody’s is committed to offering science-driven, objective analytics to advance strategic resilience and to help market participants navigate the transformation to a low-carbon, climate-resilient future.”

Components of the comprehensive product suite range from physical and transition climate risk assessments for thousands of companies and millions of real estate properties to on demand scoring for listed and unlisted companies, and TCFD reporting solutions and analytics. The suite also includes tools for analysis of the credit impact for physical and transition risk, long-term Climate Risk Scenarios for assessing physical and transition changes, as well as Climate Pathway Scenarios to help power insurers’ and pension funds’ asset and liability projections for risk assessment and disclosure purposes.

Emilie Mazzacurati, Global Head of Moody’s Climate Solutions, said:

“Combining advanced climate know-how with proven models for credit risk and economic forecasts has enabled us to create a sophisticated set of climate risk analytics to support the systematic integration of climate change into investment and risk management decisions. Our solutions support growing market needs for robust modelling of climate risks and their financial impacts.”