Skip to main content

Thank you for visiting nature.com. You are using a browser version with limited support for CSS. To obtain the best experience, we recommend you use a more up to date browser (or turn off compatibility mode in Internet Explorer). In the meantime, to ensure continued support, we are displaying the site without styles and JavaScript.

  • Feature
  • Published:

Rating climate risks to credit worthiness

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

Rent or buy this article

Prices vary by article type

from$1.95

to$39.95

Prices may be subject to local taxes which are calculated during checkout

References

  1. Wilmore, J. Why did Aberdeen's bypass hit Carillion so hard? Construction News (22 January 2018); https://go.nature.com/2FI4u7p

  2. 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

  3. 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

  4. Vattenfall completes German lignite business sale. Vattenfall (30 September 2016); https://go.nature.com/2wfgBcy

  5. Climate Change Impacts in the United States: Highlights (US National Climate Assessment, 2014); https://go.nature.com/2jv2qqu

  6. 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

  7. Taylor, L. Expect more 'Lucifer' heatwaves to scorchEurope, scientists say. Reuters (27 September 2017); https://go.nature.com/2wfhcuO

  8. VW scandal: how has it impacted Volkswagen’s stock? (VLKAY). Investopedia (5 October 2016); https://go.nature.com/2HOF127

  9. 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

  10. Flavelle, C. Moody's warns cities to address climate risks or face downgrades. Bloomberg (29 November 2017); https://go.nature.com/2w93tWp

  11. US municipal bond market ticks up to $3.8337 trillion in Q4, Fed says. CNBC (9 March 2017); https://go.nature.com/2rka1MW

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Karl Mathiesen.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

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

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1038/s41558-018-0184-z

This article is cited by

Search

Quick links

Nature Briefing

Sign up for the Nature Briefing newsletter — what matters in science, free to your inbox daily.

Get the most important science stories of the day, free in your inbox. Sign up for Nature Briefing