2021 Stakeholder Sustainability Report
A MESSAGE FROM OUR
PRESIDENT & CEO
2021 SUSTAINABILITY
HIGHLIGHTS
ABOUT MOODY'S
BETTER BUSINESS
BETTER LIVES
BETTER SOLUTIONS
APPENDIX
Moody's 2021 Stakeholder Sustainability Report
81
Measuring impact with ESG
Credit Impact Scores
Credit Impact Scores (CISS) are an output of the credit
rating process that indicate the extent, if any, to which ESG
factors impact the credit rating of an issuer or transaction.
Similar to IPS, these scores are attributed on a five-point
scale from very highly negative (5) to positive (1).
For example, the CIS score of the issuer in Figure 1 is highly
negative (CIS-4), reflecting high exposure to social risks
and moderately negative exposure to environment risks,
combined with relatively low resilience as weakening public
finances and relatively low-income levels constrain the
issuer's capacity to respond to environmental and
social shocks.
Figure 1
On the other hand, the CIS score of the issuer in Figure 2 is
positive (CIS-1), reflecting low exposure to environmental
risks, limited social risks and very strong governance and
forward-looking policymaking.
Figure 2
CIS-1
Positive
Sector median
Issuer CIS score
Negative
impact
Positive
impact
CIS-4
Highly Negative
Negative
impact
Positive
impact
Sector median
Issuer CIS score
ADDITIONAL COMPONENTS
OF MIS INTEGRATION
In addition to ESG scores, MIS publishes Carbon Transition
Assessment scores (CTAS), which provide a consistent and
verifiable means to analyze carbon transition risk for 380¹
rated issuers in the most exposed sectors, such as oil and
gas and automobile manufacturers, among others.
For each of the sectors MIS rates globally, MIS also
publishes Environmental and Social Risk Heat Maps that
visualize the relative ranking of various sectors along the
E and S classification of risks.
As the CTAs demonstrate, MIS is committed to creating
tools that help the financial system assess transition risk
and readiness for a low-carbon world.
1 Cumulative data as of December 31, 2021.View entire presentation