The $45 Trillion Climate Opportunity - Moody’s CEO

Recently Moody’s CEO commented on the climate opportunity the world has and that is due to the Paris Agreement’s in place and banks, insurers, and asset managers across the G20 hold $22 trillion in loans and investments subject to carbon transition risk.

Moody’s estimate that the transition could amount to a nearly 25% cumulative gain in the gross domestic product over the next two decades. Moreover, many players are heavily investing in ESG the sector rose by 140% in 2020. Here’s a thread on the same.

ESG stocks are set to receive more funding. Are these stocks the future? - What’s Hot :fire: - Vested Community
Here are the 3 takeaways according to Moody’s

  1. Automakers prove that rapid progress is possible- “Although substantial risk remains, as automakers must now execute on these plans, a combination of government policy, market demand, and corporate innovation moved the needle. The industry can serve as a model for other sectors.”
  2. Acting fast to delay their default risk - companies should innovate or else risk being defaulted especially the ones in oil, gas and airlines.
  3. Differences within the sectors.

“The financial industry has a critical role to play in accurately pricing climate risk and supporting investments that enable companies to align with a zero-carbon future. By providing the data and analytics to manage climate risks, we hope to provide the tools and insights needed to support sustainable and resilient investments that enable sectors and companies to thrive.”

Here’s what I found on Yahoo Finance: 11 Best Climate Change Stocks To Buy According To Hedge Funds (

Is this a good investment?

Disclaimer: Vested does not provide any investment advice. The above article is factual reporting according to the current trends in the market.