Four Twenty Seven, a part of Moody's ESG Solutions, sends a monthly newsletter highlighting recent developments in climate risk and resilience.
In Focus: Assessing Biodiversity Risk for Financial Stakeholders
Moody's ESG Solutions Analysis: Integrating Biodiversity into a Risk Assessment Framework
Biodiversity loss has emerged as a concern for responsible investors, financial regulators and companies whose activities have an impact and depend on natural capital, with scientists warning that the world is in the midst of a sixth mass extinction. Moody’s ESG Solutions launched two new reports on biodiversity, powered by Four Twenty Seven and V.E. The first outlines our framework for assessing biodiversity risk, which can provide a foundation from which to understand the biodiversity risks of companies in investment and lending portfolios.
The report shares a case study evaluating company facilities associated with habitat loss globally, as one indicator of a company's impact on biodiversity. Out of 5,300 publicly-traded global companies, we find over 2,000 entities have at least one facility associated with habitat loss.
A second case study reviews company disclosures on their commitments and measures to address biodiversity, as an indication of their biodiversity governance. We find 61% of assessed companies in the heavy construction sector disclose commitments to address biodiversity. Yet less than 10% of the sector receives a "robust" or "advanced" score in terms of implementation.
Controversy Risk Assessment: a Focus on Biodiversity
The second report in our series focuses on controversies, as another indication of a company's governance of biodiversity risks. We found that 7% of analyzed controversies from Dec. 201 - Apr. 2021 were related to biodiversity allegations. Geographically, they have been most frequently observed in the US, Indonesia and Malaysia. The report explores the severity of identified controversies and discusses how companies responded to them.
Canada Launches Council Focused on Financial Climate Risk
Canada launched a Sustainable Finance Action Council to support a sustainable finance system focused on mobilizing capital to meet Canada's 2030 Paris Target, supporting the transition to net zero by 2050 and maintaining a resilient economy. The council's first meeting will be in early June and its initial focus will be on improving public and private sector climate risk disclosures in line with the TCFD recommendations.
Unipol Gruppo Selects Moody's Analytics Climate Pathway Scenario Service
As climate change creates new demands on insurers to understand their exposure to financial impact from climate risk the Moody’s Analytics Climate Pathway Scenario Service helps power insurers’ and pension funds’ asset and liability projections by providing climate-aligned scenarios that capture physical and transition risks from climate change.
We're Hiring! Join us at
Moody's ESG Solutions
There are several opportunities to join Moody's ESG Solutions' dynamic team. See the open positions below and visit Moody's Careers page for more information.
AVP/VP – Regulatory Analyst (Climate) – we’re looking for an individual with deep expertise in climate risk to inform product development in line with global regulatory developments related to climate risk disclosures and climate stress tests.
Data Content Analyst - we're seeking a motivated problem solver to help develop and manage the processes that ensure the accurate, timely delivery of financial and business data to support the development of climate and ESG products.
Join the team online at these upcoming events and check our Events page for updates:
Jun 2-4– Green Swan 2021:Founder & CEO and Global Head of Moody's Climate Solutions, Emilie Mazzacurati, Emilie Mazzacurati will present during the session on climate-related risks data and accounting. Invitation only.
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