Investor Presentaiton
ESG Market Overview
Market Trends
» Multiple drivers and stakeholders supporting the growth of ESG, with
increasing relevance to corporates, banks, insurers, investors,
governments and consumers
» Moody's forecasts global issuance of green, social and sustainability
-
bonds collectively referred to as sustainable bonds - will hit a
record $850 billion in 20211
» Sustainability linked financing emerging as a key alternative to “use
of proceeds" green issuance, expanding the potential issuer base
» Increasing governmental focus on climate and sustainable debt
market growth and development
Central banks focused on managing climate change-related
systemic risks
Annual Issuance ($ billions)
Sustainable bonds set to
reach record volumes1
$900
$800
$700
$600
$500
$400
$300
$200
$100
$0
2019
■Green Bonds
~55% CAGR
2020
2021E
Sustainability Bonds
■Social Bonds
Annual Spending ($ millions)
Percentage of assets invested sustainably³
2020 2025
50%
Rapidly growing spend on
ESG data & metrics²
~23% CAGR
1,000
800
600
400
200
0
2019
2020E
2021E
■ESG content
■ESG indices
40%
EMEA - EU driving towards standardization of ESG taxonomy,
disclosures and reporting standards
30%
U.S. - The Biden administration is taking a whole-of-government
approach to tackle climate change, including focusing on
20%
disclosures and Climate as a source of systemic risk
10%
1.
Source: Moody's Investors Service "Sector in-depth: Sustainable Finance - Global - Sustainable bond
volumes to top $850 billion in 2021", July 29, 2021.
0%
2. Sources: McKinsey and Opimas, March 2020.
Moody's | Better decisions
Global
EMEA
APAC
Americas
3. Source: Global Client Sustainability Survey, July-September 2020. BlackRock.
2Q 2021 Investor Presentation
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