Integration of ESG
Moody’s Ratings systematic and transparent integration of environmental, social and governance considerations into credit risk
ESG Classification
What is ESG?
View our General Principles for Accessing Environmental, Social and Governance Risk Methodology which constitutes our formal analytical approach and also includes the ESG classifications.
Heat Maps
How does ESG materiality vary across sectors?
Heat maps provide relative ranking of environmental and social risks across global sectors.
Environmental Risk Heat map
31 October 2022
Social Risk Heat map
10 JUNE 2022
ESG Scores
What is the credit impact of ESG on rated issuers and how are they exposed to ESG risk and benefits?
  • Credit Impact Score (CIS) is an output of the rating process that indicates the extent, if any, to which ESG factors impact the rating of an issuer or transaction.
  • Issuer Profile Scores (IPS) are issuer-specific scores that assess an entity’s exposure to the categories of risks in the ESG classification from a credit perspective.
  • We also provide Carbon Transition Indicators (CTIs) which provide a consistent and verifiable means to analyze carbon transition risk for rated non-financial companies.
VIEW ESG ScoresMeasuring the credit impact of ESG risks
Credit Ratings & Research
How is ESG integrated into credit analysis?
Moody’s Ratings credit analysis seeks to incorporate all issues that can materially impact credit quality, including ESG and climate risk; and aims to take the most forward-looking perspective that visibility into these risks and mitigants permits.

Our ESG General Principles Methodology first published in January 2019 formalized our approach for incorporating ESG considerations in our ratings. The methodology was updated to explain further our integration of ESG in credit analysis, in particular through our ESG scores.
ESG factors are taken into consideration for all credit ratings. In our credit rating press releases, we include explanations about whether and how E, S or G is material to a rating action and/or to the rating level. Our issuer, sector and thematic research provides thought-leading insights about the credit impact of ESG.