Moody’s Analytics, Global Sustain Launch ESG Risk Assessment Course
Moody’s Analytics, Global Sustain Launch ESG Risk Assessment Course
Sustainability advisory services company Global Sustain announced today the launch of an e-Learning course on ESG Risk Assessment developed in collaboration with financial intelligence analytical tools provider Moody’s Analytics, aimed at helping professionals including risk managers, credit and ESG risk analysts, relationship managers, and other senior managers to understand the impact of ESG on lending and investment decisions.
Michael Spanos, CEO of Global Sustain, said:
“We are very pleased and honoured to share our expertise and know-how on ESG with leading organisations like Moody’s that have such an impact on the global economy. This ESG eLearning programme will assist Moody’s clients in ESG awareness and integration in credit risk management and procedures.”
The online course, consists of three modules, including the Principles of ESG, Assessing and Managing ESG Risk, and Integrating ESG in Credit Assessment and Reporting. Key topics and concepts covered by the course include ESG, responsible banking, and sustainable finance principles, assessing and managing ESG risk in credit risk assessment, integration of ESG factors into the probability of default and loss, and key ESG reporting frameworks and standards, among others.
Tara Kapitan, Senior Director Program Management at Moody’s Analytics, said:
“As our clients are increasing their investment in ESG data and tools, we recognize that their people are at the heart of a successful integration of ESG into their enterprise risk management framework. That is why we collaborated with Global Sustain to provide a practical ESG course on how to identify, assess, and manage ESG risks and opportunities at both the client and portfolio level.”
Moody's also announced a new commitment to cut greenhouse gas (GHG) emissions across its operations and value chain by 90% by 2040, compared to a 2019 base year.
The new target forms part of Moody’s commitment, announced last year to achieve net zero emissions by 2040. With today’s announcement, Moody’s stated that it has become one of the first companies to have its near- and long-term net-zero targets validated by the Science Based Targets initiative (SBTi). SBTi launched a ‘net zero standard’ in October to assess and certify company’s commitments to achieve net zero emissions, with stringent criteria for approval, including required decarbonization of 90-95% by 2050, with neutralization of residual emissions that are not yet possible to cut.
Moody’s new target was released with the publication of the company’s 2021 Stakeholder Sustainability and Task Force on Climate-related Financial Disclosures (TCFD) reports, highlighting the company’s ESG efforts and initiatives and climate plans and progress. According to the reports, Moody’s has already achieved a 92% reduction in absolute Scope 1 and 2 GHG emissions and a 95% reduction in Scope 3 from a 2019 base year in 2021. The company has set a target for 60% of its suppliers by spend to have science-based target commitments by 2025 (currently at 28%).
In the company’s 2021 Stakeholder Sustainability Report, Moody’s President & CEO, Robert Fauber wrote:
“Sustainability is not only a value driver for Moody’s. We strive to lead by example and are embedding responsible and sustainable decision-making across our firm. Last year, we accelerated our commitment to reach net-zero by 2040 – a decade earlier than the Paris Agreement goals. We are also working with our suppliers to help them advance their own sustainability targets.”