BAN2112. Incorporating ESG and Climate Events Into Financial Projections and Portfolio Monitoring, presented by Moody’s Analytics

Historically, businesses have often had to make “rebuild” or “liquidate” decisions in the aftermath of natural disasters and in response to ESG incidents. Unfortunately, climate change is likely to make such decisions more common, and these rebuild decisions require capital expenditures and financing. In some cases, a firm’s debt may need to be restructured. Pivotal to making such decisions will be the capabilities to project out a firm’s financial statements to determine key financial ratios and its credit risk and determine the value of the firm as an ongoing concern versus the liquidation value.

Learning Objectives:

• Determine and discuss an approach designed to facilitate projections of financial statements that can be used to determine credit risk in commercial portfolios
• Identify a framework for incorporating climate risk generally