Financial Times: Data Drill

ESG scores are driving credit differences between oil and gas companies, writes Amanda Chu in the Financial Times’ ‘Energy Source’ newsletter, citing research conducting by Credit Benchmark and Moody’s.

Amanda Chu noted in the column:

“The…analysis suggests that company investments in ESG portfolios pay off. Having better credit quality means these companies have easier and cheaper access to funding. Oil and gas companies with high ESG scores saw a 17 per cent decline in credit risk in 2021, more than twice their low-ESG-scoring counterparts.”

The full original research cited by the Financial Times can be accessed here.

The Financial Times, December 23, 2021.

View original article (external link).

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Credit Benchmark brings together internal credit risk views from over 40 leading global financial institutions. The contributions are anonymized, aggregated, and published in the form of consensus ratings and aggregate analytics to provide an independent, real-world perspective of credit risk. Risk and investment professionals at banks, insurance companies, asset managers and other financial firms use the data for insights into the unrated, monitoring and alerting within their portfolios, benchmarking, assessing and analyzing trends, and fulfilling regulatory requirements and capital.