How does Moody's evaluate environmental, social, and governance (ESG) factors?

Moody's evaluates environmental, social, and governance factors (ESG) by incorporating them into its credit ratings and research. They assess companies based on their exposure to ESG risks and opportunities, analyzing factors like carbon emissions, resource management, labor practices, diversity, governance, and more. Moody's has developed a comprehensive ESG framework that evaluates industries based on their unique sustainability challenges. This framework guides their analysis, ensuring consistent and objective evaluation. Moody's also provides ESG assessments and insights through various tools and research, helping investors make informed decisions. They engage with market participants, conduct regular dialogue, and collaborate with industry experts to enhance their ESG analysis and share best practices. Moody's commitment to evaluating ESG factors underscores their dedication to promoting sustainable and responsible business practices.