Credit ratings, research and data provider Moody’s Investors Service has launched a framework that provides Net Zero Assessments (NZAs) for non-financial corporate entities. The new framework is applicable for non-financial corporate entities globally, including public sector and non-profit entities possessing business-like revenue-raising capacity. NZAs are expressed on a five-point scale ranging from a high of NZ-1 to a low of NZ-5 and they consider the strength of an entity’s ambitions, the implementation of its plan and its governance around greenhouse gas (GHG) emissions reductions. Moody’s stressed that NZAs are not credit ratings and “do not directly address credit risk or provide an opinion on the credit implications of an entity’s transition plan”. Brian Cahill, Global Head of ESG at Moody’s Investors Service, said: “NZAs provide an independent and comparable assessment of an entity’s emissions reduction profile, enabling market participants to better understand the relative positioning of non-financial corporates as they transition to a low-carbon future.”
Moody’s is making it easier to compare entities’ decarbonization plans by introducing the Net Zero Assessment (NZA) – an independent and comparable assessment of an entity’s emissions reduction profile.
👉 Read more about our new NZA framework: https://t.co/guBVVJazIv#netzero pic.twitter.com/FvwZDimVDm
— Moody's Investors Service (@MoodysInvSvc) November 9, 2023
