Moody's Analtics Webinar: Target Review Internal Models (TRIM) challenges and Best Practices
Thursday 19th April, 2018 | 10:00AM BST
Enhanced Methodology for ESG Assessments
Consultation period extended to 25 March 2022 from 18 March 2022.
Moody’s ESG Solutions is seeking feedback from market participants on proposed enhancements to its methodology for ESG Assessments. These assessments measure the extent to which companies manage their exposure to Environmental, Social and Governance (ESG) factors that are material to their stakeholders and their business from the perspective of risk mitigation and value creation.
In its proposal, Moody's ESG Solutions aims to make the following enhancements to its methodology:
We enrich our ESG Assessment framework by introducing new Subcategories for analysis (Physical Risks, Cyber & Technology Risks, Responsible Tax). We have also adjusted the scope of other Subcategories to be more exhaustive and minimize overlaps between them.
We improve our double materiality approach to balance shareholder and stakeholder interests and to reflect the growing integration of ESG factors into financial analysis.
We increase the number of industry frameworks from 40 to 51. A higher number of industry frameworks means ESG factors are appropriately weighted for a more precise entity analysis.
We enhance the data structure supporting our ESG Assessment to offer greater transparency into our scoring methodology with comparable ESG metrics and associated sources of information.
We add an Overall ESG grade that allows users to quickly understand the performance of an entity relative to the whole universe of entities assessed by this methodology.
Upon appropriate consideration of comments received, we will adopt and publish a revised version of this methodology.
To participate in this market consultation, please submit your information and complete the non-disclosure-form. We will respond to you promptly with additional instructions.
Click below to find out more about Moody's ESG Solutions:
Following the commencement of TRIM in 2016, there are has been a multi phased approach to the ECB’s TRIM exercise. As we are gearing up for a year of further TRIM exercises and transitioning to review of wholesale and low default portfolios, Moody’s would like to host this webinar to provide:
Further insight to the challenges in the market thus far