1Q 2021 Investor Presentation
Sustainable bonds set for
record volumes1
600
-42% CAGR
400
300
200
100
0
2019
2020
2021E
■Green Bonds Social Bonds
Sustainability Bonds
Annual Spending ($ millions)
ESG &
CLIMATE
RISK
Spend on ESG data &
metrics growing rapidly²
1,000
800
600
400
-23% CAGR
200
0
2019
2020E
ESG content
2021E
ESG indices
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 $650 billion in 20211
-
» Sustainability linked financing emerging as a key alternative to "use
of proceeds" green issuance, expanding the potential issuer base
» Increasing governmental focus on climate and sustainable debt
market growth and development
Central banks focused on managing climate change related
systemic risks
EMEA - EU driving towards standardization of ESG taxonomy,
disclosures and reporting standards
Annual Issuance ($ billions)
50%
40%
700
30%
500
Percentage of assets invested sustainably³
2020 2025
سيال
U.S. - The Biden administration is taking a whole-of-government
approach to tackle climate change including focusing on
disclosures and Climate as a source of systemic risk
20%
10%
1.
Source: Moody's Investors Service "Sector in-depth: Sustainable Finance - Global - Sustainable bond
volumes to top $650 billion in 2021", February 4, 2021.
0%
2.
Sources: McKinsey and Opimas, March 2020.
Global
EMEA
3.
Source: Global Client Sustainability Survey, July - September 2020. BlackRock.
Moody's | Better decisions
APAC
Americas
1Q 2021 Investor Presentation
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