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Laxman Pai, Opalesque Asia: ESG in global credit markets is increasingly relevant, according to live polls taken at an ESG conference in London held by Moody's Investors Service.
More than two-thirds of market practitioners regard either assessing financial materiality or meet growing client demand for thematic and impact investing, as the key motivations behind ESG investment approaches, the survey said.
"Moody's seeks to incorporate all material credit considerations, including ESG issues, into our credit ratings and to make the most forward-looking perspective that visibility into these risks and mitigants will permit," said Ram Sri-Saravanapavaan, an analyst at Moody's.
"Nevertheless, ESG considerations and their importance to issuers' credit profiles can vary widely across sectors, underscoring the need to assess materiality at an industry level," he added.
According to the polling, 37% of participants identified financial materiality as the primary driver of their ESG investment approach, while 30% cited the need to meet growing client demand for impact, or thematic, investing.
A further 15% said a desire to manage reputational risks was at the core of their approach to ESG investing.
The live polls conducted throughout the conference also found that 52% of respondents regarded the availability of data and disclosures as the biggest challenge when integrating ESG issues into credit risk.
Of the market participants surveye...................... To view our full article Click here
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