Credit ratings agencies are now accounting for climate change risks in their ratings of credit worthiness. This could incentivize climate risk reduction efforts if it allows organizations access to cheaper credit. Karl Mathiesen investigates the extent to which this is happening in practice.
This is a preview of subscription content, access via your institution
Access options
Access Nature and 54 other Nature Portfolio journals
Get Nature+, our best-value online-access subscription
$29.99 / 30 days
cancel any time
Subscribe to this journal
Receive 12 print issues and online access
$209.00 per year
only $17.42 per issue
Buy this article
- Purchase on Springer Link
- Instant access to full article PDF
Prices may be subject to local taxes which are calculated during checkout
References
Wilmore, J. Why did Aberdeen's bypass hit Carillion so hard? Construction News (22 January 2018); https://go.nature.com/2FI4u7p
Lou, M. & Dallos, G. How credit rating agencies are slowly but surely reacting to cli-mate risk. Unearthed (28 January 2018); https://go.nature.com/2rjTw2E
Lipan, C. M. Exgen Texas Power Llc, an Exelon Corp. subsidiary files for bankruptcy, blames cheap gas prices and wind power. Shipkevitch (13 November 2017); https://go.nature.com/2rjWXHv
Vattenfall completes German lignite business sale. Vattenfall (30 September 2016); https://go.nature.com/2wfgBcy
Climate Change Impacts in the United States: Highlights (US National Climate Assessment, 2014); https://go.nature.com/2jv2qqu
Kernan, P. et al. How Does S&P Global Ratings Incorporate Environmental, Social, and Governance Risks Into its Ratings Analysis (S&P Global, 2017); https://go.nature.com/2HQleuZ
Taylor, L. Expect more 'Lucifer' heatwaves to scorchEurope, scientists say. Reuters (27 September 2017); https://go.nature.com/2wfhcuO
VW scandal: how has it impacted Volkswagen’s stock? (VLKAY). Investopedia (5 October 2016); https://go.nature.com/2HOF127
How asset level data can improve the assessment of environmental risk in credit analysis. Global Credit Portal (3 October 2016); https://go.nature.com/2FHwwQn
Flavelle, C. Moody's warns cities to address climate risks or face downgrades. Bloomberg (29 November 2017); https://go.nature.com/2w93tWp
US municipal bond market ticks up to $3.8337 trillion in Q4, Fed says. CNBC (9 March 2017); https://go.nature.com/2rka1MW
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Mathiesen, K. Rating climate risks to credit worthiness. Nature Clim Change 8, 454–456 (2018). https://doi.org/10.1038/s41558-018-0184-z
Published:
Issue Date:
DOI: https://doi.org/10.1038/s41558-018-0184-z
This article is cited by
-
Business risk and the emergence of climate analytics
Nature Climate Change (2021)