In this keynote presentation during Risk Australia Virtual 2020, Founder & CEO, Emilie Mazzacurati, discusses “Taming the Green Swan: Incorporating Climate Risk into Risk Management.” She covers changes in the regulatory environment and how investors can use science to inform risk management and investment decisions. Emilie discusses progress made on climate risk disclosure to date, explains the latest thinking on conducting scenario analysis for climate risks and provides case studies of the economic impacts of climate risk in Asia and Australia.
This RCLCO Real Estate Advisor webinar focuses on integrating climate risk analytics into decision-making for real estate investors and opportunities to leverage this information to build resilience.
- Stephen Bishop, Senior Associate of RCLCO Real Estate Advisors, discusses the impacts of physical and transition climate risks on real estate.
- Emilie Mazzacurati, Founder & CEO of Four Twenty Seven, presents on opportunities to leverage climate data to inform an understanding of climate risk in real estate portfolios.
- Cyndi Thomas, Managing Director of RCLCO Real Estate Advisors, shares RCLCO’s framework for integrating climate risk mitigation practices.
- Moderator: Joshua A. Boren, Director, Business Development at RCLCO Real Estate Advisors
This panel on Preparing for the Future of ESG features a discussion on interactions between ESG, the global pandemic and corporate strategy and is part of the Vinson & Elkins (V&E) ESG Symposium: Capital, Climate and Culture in the New World.
- Beth Lowery, Managing Director of TPG discusses ESG governance in the corporate sector.
- Emilie Mazzacurati, Founder and CEO of Four Twenty Seven, offers insight into the increasing understanding of ESG and climate risks as materially relevant, underscored by regulatory developments, objective data and investor pressure.
- Sarah Fortt, Counsel – Mergers & Acquisitions and Capital markets of V&E, speaks on metrics for measuring ESG through company behavior and disclosure.
- Skye d’Almeida, Senior Vice President, Investor Coverage of Green Investment Group at Macquarie, discusses the financial success of ESG products due to long-term predictable revenue.
- Susan Gray, Global Head of Sustainable Finance Business and Innovation of S&P Global Ratings, discusses company engagement with stakeholders and the increased granularity of investor focuses.
- Moderator: Maggie Peloso, Partner – Environmental & Natural Resources of V&E.
Moody’s launches an ESG Solutions Group, offering data and analytics across ESG, climate risk and sustainable finance. Read the press release from Moody’s:
LONDON–(BUSINESS WIRE)– Moody’s Corporation (NYSE: MCO) announced today the formation of an Environmental, Social, and Governance (ESG) Solutions Group to serve the growing global demand for ESG insights. The group leverages Moody’s data and expertise across ESG, climate risk, and sustainable finance, and aligns with Moody’s Investors Service (MIS) and Moody’s Analytics (MA) to deliver a comprehensive, integrated suite of ESG customer solutions.
The ESG Solutions Group develops tools and analytics that identify, quantify, and report on the impact of ESG-related risks and opportunities. Moody’s ESG capabilities expanded following its investments in Vigeo Eiris (VE), a global pioneer in ESG assessments, data and tools, and sustainable finance, and Four Twenty Seven, a leader in climate risk analysis, in 2019. ESG and climate risk considerations are already integrated into credit ratings and research offered by Moody’s Investors Service, and will be integrated into a range of Moody’s Analytics risk management solutions, research, data and analytics platforms.
“Moody’s ESG Solutions Group brings together capabilities from across the company to help market participants advance strategic resilience, responsible capitalism, and the greening of the economy by identifying risks and opportunities and providing meaningful performance measurements and insights,” said Rob Fauber, Moody’s Chief Operating Officer.
The ESG Solutions Group is led by Andrea Blackman, who has over 30 years of experience in harnessing financial and technology innovation in leadership roles with banks, asset managers, and financial technology vendors. She previously managed Moody’s CreditView, growing it into the leading global research, data, and analytics platform for credit market professionals.
Including its affiliates, Moody’s ESG-related offerings now include:
- 5,000+ company ESG assessments
- Controversy screening for 7,900 companies
- 1 million climate risk scores
- 250+ sustainable bond and loan reviews
- 70+ ESG specialty indices
- Credit ratings that integrate ESG risk considerations
- Risk management solutions integrating ESG and climate risk factors
VE and Four Twenty Seven will continue to offer market-leading stand-alone ESG and climate risk solutions given strong demand for their innovative products. VE recently launched enhanced Second Party Opinions for sustainability bonds that integrate aspects of the EU Taxonomy and Green Bond standard. Four Twenty Seven recently announced the addition of wildfire risk to their on-demand Real Asset Scoring Application for a property or facility’s projected exposure to climate change effects.
For more information visit Moody’s ESG & Climate Risk hub at www.moodys.com/esg
While real estate investment trusts (REITs) can manage the current physical risks of climate change, increased asset exposure to climate hazards will pose greater challenges. In its sector in-depth, REITs Can Manage Climate Risk, Investments Needed to Address Growing Challenges, Moody’s Investors Service leverages Four Twenty Seven’s climate risk data to assess climate risk for 15 rated US REITs.
REITs are most exposed water stress in regions such as California and the Southwest while heat stress puts strains on operating costs in California, the mid-Atlantic and several Northeast locations. For the REITs assessed in the report, hurricane and sea-level rise risk pose less severe threats than they do in some coastal markets. pose modest influence in comparison to heat and water stress for most property locations. Floods pose a modest risk to most assessed REITs.
The analysis found that factors such as the power to pass improvement costs to tenants and local government investment in resilience can mitigate these growing risks. While insurance has traditionally been another risk mitigation technique, these growing changes demand larger capital investments. Asset-level resilience measures can help protect properties from the the impacts of hazards and reduce increased operating costs.
Moody’s subscribers can read the full report here.
This Responsible Investor Digifest panel covers the elements of transition, physical and liability risks related to climate change and the importance of using climate risk data for investment decision-making.
- Viola Lutz, Head of University Consult and Climate at ISS ESG, discusses assessing companies’ alignment with climate change mitigation targets.
- Emilie Mazzacurati, Founder & CEO of Four Twenty Seven, shares Moody’s and Four Twenty Seven’s latest work on quantifying the financial impacts of climate change.
- Julie Gorte, Senior Vice President for Sustainable Investing at Impax Assess Management, discusses physical climate risk from an investor perspective.
- Gerald Esono, RI Analyst at Ilmarinen Mutual Pension Insurance Company, speaks about integrating ESG analysis into the investment decision process.
- Moderator: Sophie Robinson-Tillet, Editor, Responsible Investor