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NOTEBOOK – ONE GOOD READ: Wall Street’s $22 trillion carbon time bomb

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Credit rating agencies are becoming more vocal about the risks of institutional investors’ exposures to carbon-intensive companies, as this recent Bloomberg article details. According to Moody’s Investors Service, financial institutions in the Group of 20 leading industrial and developing nations have $22 trillion of exposure to carbon-intensive industries, which represents about 20% of their total loans and investments. So unless these firms make a swift shift to climate-friendly financing, they risk reporting losses, Moody’s said. “Banks, insurers and asset managers need to adjust their business models toward lending and investing in new and developing green infrastructure projects, while supporting corporates in carbon-intensive sectors that are pivoting to low-carbon business models,” Moody’s wrote in a report last week.