Moody’s Investors Service Inc. recently warned coastal communities that it might lower their credit ratings if they don’t address the risks stemming from climate change.
The credit rating agency giant says that coastal locations are at risk from surging seas and intense storms. Therefore, they are at greater risk of defaulting on bonds.
Moody’s will ask questions about what cities are doing to mitigate risk exposure, an executive from the agency told Bloomberg. Moody’s assesses several factors related to climate change such as economic activity that comes from coastal areas, hurricane and extreme-weather damage as a share of the economy, and the share of homes in a flood plain.
The company has been pressured by investors to be more forthcoming about how it factors climate change into how it determines ratings. In theBloomberg report, the Moody’s executive said he couldn’t recall any examples to date of the company downgrading a city or state because it failed to address climate risk. But, that could change in the future.
Related Stories
Codes and Standards | Feb 17, 2022
Pandemic won’t alter urban planning
City planners focused on returning to ‘old normal’.
Codes and Standards | Feb 16, 2022
California court rules affordable housing developers exempt from local zoning
Case could set precedent on state law that overrides local rules.
Codes and Standards | Feb 15, 2022
FORTIFIED resiliency standard expanded to include multifamily sector
Voluntary, beyond-code program aims to protect buildings from severe weather.
Codes and Standards | Feb 10, 2022
Number of Americans at risk of flooding to double in 30 years
Most new risk from new development, not climate change.
Codes and Standards | Feb 10, 2022
Intl. Code Council committee on diversity seeks applicants
New board aims to increase diversity in the membership association.
Codes and Standards | Feb 9, 2022
Climate impact of gas stoves in U.S. equal to half a million cars
New study could increase momentum to ban fossil fuels in new buildings.
Codes and Standards | Feb 7, 2022
Energy efficiency ratings not reflecting true energy use
Highest rated U.K. buildings are less efficient than lower rated ones.
Codes and Standards | Feb 3, 2022
Illinois tops USGBC list of states with the most LEED certified projects in 2021
Top 10 states plus D.C. certified more than 247 million gross square feet.
Codes and Standards | Feb 2, 2022
Public works contracting reform advances in New York State
Governor signs bill to form advisory council that will propose policy changes.
Codes and Standards | Feb 2, 2022
Commercial and multifamily construction starts rebounded in 2021
Following COVID uncertainty in 2020, the industry recovered, but still lags 2019 levels.