Integrating Ecological Risk in Sovereign Credit Ratings and Investments

This project seeks to assess financial materiality of ecological risks relevant for the credit risk evaluation of government bonds. Global Footprint Network and UNEP FI will work together with different financial institutions (asset owners, investment managers, credit rating agencies and information providers) to analyse the linkages between ecological and financial risk, and explore how Ecological Footprint trends can shed light on financially material threats and risks that are not currently included in credit ratings. Other potentially relevant criteria, which are currently not accounted for in credit ratings, will also be analysed and integrated into the methodology. The aim is to foster shared learning from working with a number of banks, investors and credit rating agencies, and to enable the integration of ecological risk in sovereign credit ratings and government bonds.

A workshop will take place on October 17 in advance of the UNEP FI Global Roundtable.

Contact Ivo Moulder for details at [email protected]