E-RISC: A New Angle on Sovereign Credit Risk report successfully launched in London The E-RISC report was successfully launched today at a well-attended event, hosted by Bloomberg. It was initiated by UNEP FI, Global Footprint Network and a number of asset owners, investment managers and information providers. The E-RISC (Environmental Risk in Sovereign Credit) project investigates sovereign credit risk from an angle that has been largely overlooked by bond markets to date: natural resource risks and environmental impacts. The project explored to what extent natural resource risks can impact a country’s economy and thus, its ability to pay its debts. With a current total of more than USD 40 trillion of outstanding sovereign debt, the stakes are high and the issue demands closer inspection. Results provide a first insight into how factors such as resource prices, ecosystem degradation, and climate change impact national economies and provides a sense of how these criteria can be factored in sovereign credit risk models and hence in selection and weighting of sovereign bonds and sovereign credit ratings. More information here. Register for the E-RISC launch event in New York (12 December)
07 March 2023Climate Change, Publications, Risk, TCFD