In the News

Illinois’s Risk to Bond Buyers Is Getting Hotter – Literally
September 24, 2019

Wall Street has a number of reasons to be concerned about the credit quality of Illinois, the lowest-rated U.S. state: mounting pension obligations, billions of dollars in unpaid bills and a shrinking population. Now investors can add climate change to that list.

Western Illinois and Missouri are two areas that are expected to experience the greatest rise in extreme temperatures by 2040, according to a report on Tuesday by Moody’s Investors Service. Rising temperatures threaten to curb agricultural production and labor productivity, increase the costs for infrastructure and heighten energy demand as residents struggle to cool their homes and businesses. Read more>

Dorian’s Damage Underscores Need to Prepare for Storms and Climate Change
September 20, 2019

Private investment in the reconstruction of the Bahamas after Hurricane Dorian could set a precedent for storm recovery in the United States.

Resilience expert Alan Rubin, a principal with Blank Rome Government Relations in New York, discussed the matter in Washington recently with U.S. Rep. Eliot Engel, D-N.Y.; Engel’s chief of staff, Bill Weitz; Eric Jacobstein, senior policy advisor for the House Committee on Foreign Affairs; and representatives from the international development agency U.S. Agency for International Development, which sent a response team to the Bahamas. Read more>

Tampa Bay Cities Prepare for Rising Sea Levels and Storm Risk 
September 20, 2019

The numbers add up to a bleak scenario: if the pace of global warming continues, sea levels in the Tampa Bay area could rise by as much as eight-and-a-half-feet by 2100, according to scientists’ worst-case projections.

Tampa Bay is at acute risk from climate change as its terrain is mostly at sea level, with nearly 700 miles of shoreline facing the bay or the Gulf of Mexico. A 2017 report from Climate Central, a research group, said St Petersburg and Tampa were among the 25 US cities most vulnerable to coastal flooding both then and also by 2050. Read more>

Push for Mandatory US Flood Risk Disclosure as Nearly $800bn in REITs Exposed to Sea-level Rise
September 6, 2019

US realtors may soon be required by law to disclose a property’s flood risk and history to prospective buyers, a move which could put house prices on the slide – most notably in coastal regions vulnerable to sea level rise (SLR).

So far, property valuations in these regions have been buoyant despite the increasing intensity and frequency of extreme weather events. In Miami, for example, “king tides”, caused by specific alignments of the sun and moon, have made flooding a monthly occurrence in some areas even in periods of limited storm activity. Read more>

When Levees Break: How Retailers are Preparing for a Riskier Natural World
August 19, 2019

Retail executives are notorious for blaming their companies’ problems on the weather. But a cold spring that keeps people from buying new shorts and skirts at the mall is quite a different thing from an extreme weather event that disrupts a store, supply chain or entire business.

To take a severe case, consider women’s apparel retailer A’gaci. In the year before A’gaci filed for Chapter 11 the first time, the Caribbean and U.S. had been pummeled by a series of some of the most destructive hurricanes in recorded history. Read more>

L’agence de notation Moody’s renforce ses connaissances sur le risque climatique
August 12, 2019

Moody’s vient de racheter la startup américaine Four Twenty Seven. Spécialisée dans la collecte et l’analyse des données sur le risque climatique pesant sur les entités économiques, Four Twenty Seven apporte un savoir-faire supplémentaire à Moody’s pour affiner en partie ses notations de crédit, et pour développer son expertise dans l’évaluation extra-financière. Lire l’article>

Moody’s Buys Climate Data Firm, Signaling New Scrutiny of Climate Risks
July 24, 2019

Moody’s Corporation has purchased a controlling stake in a firm that measures the physical risks of climate change, the latest indication that global warming can threaten the creditworthiness of governments and companies around the world. Read more>

Moody’s Catches on to Climate Risk Mispricing
July 25, 2019

The acquisition of California-based Four Twenty Seven, Inc., by Moody’s Corporation could signify the beginning of a major shift in how markets price risks related to climate change. Up until now, these risks largely have been absent from investors’ models, but if Moody’s, a major rating agency, starts using Four Twenty Seven’s methods in assigning ratings, that might quickly change. Read more>

Moody’s se renforce dans l’analyse du risque climatique pour affiner ses notations
July 25, 2019

En 2000 ans, la terre n’a jamais eu aussi chaud. Et Moody’s veut en connaître l’impact sur l’économie. L’agence de notation a en effet acheté des parts majoritaires dans le cabinet d’analyse  Four Twenty Seven , spécialiste du risque climatique, pour renforcer sa capacité à quantifier le risque climatique. Lire l’article>

Moody’s Buys Climate-data Firm to Help Investors Price Impact of a Warming Planet
July 26, 2019

Moody’s bought a controlling stake this week in Four Twenty Seven, a research firm that prices climate-change risk. It’s the latest indication that Wall Street is coming around to putting a price on climate change and its economic impact—albeit more slowly than many economists and investors have called for. Read more>

Hedge Funds Expect Large Jump in ESG Assets
July 24, 2019

Hedge funds expect to invest more than half of their assets next year based on environmental, social, and governance factors, a large jump from 2018, according to a survey by BarclayHedge. Read more>

Moody’s Snaps up Climate Risk Data Firm
July 24, 2019

Credit rating agency Moody’s has snapped up a majority stake in climate risk data firm Four Twenty Seven, as the wave of consolidation in the environmental, social and governance (ESG) sector gathers pace. Read more>

Moody’s Takes a Majority Stake in Climate Risk Firm Four Twenty Seven
July 24, 2019