Climate-related financial risk needs to go mainstream

In July, Moody’s announced the acquisition of a controlling stake in climate risk assessment firm Four Twenty Seven. As discussed here previously, Four Twenty Seven has detailed analysis on the climate risk exposure of US cities and counties that helps factor climate change into assessing munibond risk. 

This is crucial information for companies and communities, as well as the financial institutions that lend to them. Clearly Moody’s has realized the risks associated with climate change and more broadly with environmental, social and governance issues – in April the ratings agency bought a majority stake in ESG risk analysis firm Vigeo Eris.