Climate risks still underplayed in credit ratings – ECB blog
Sovereign bonds, utilities and automotive and insurance sector securities most impacted by climate
Credit ratings still fail to incorporate climate risk to the extent that they should, a new blog post from the European Central Bank shows.
The post, published on November 7, says environmental, social and governance factors influence around 13–19% of all rating actions across the major agencies. However, downgrades specifically related to climate change risk (CCR) account for only 2-7% of all rating actions.
The authors – Anamaria Piloiu, Oleg Reichmann and Florian Resch – write that a “lack of
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