Invitation to attend the launch of
Integrating ecological risk in sovereign credit ratings and government bonds
17 October 2011| 13.00 – 17.00 | Washington D.C.
Global Footprint Network and UNEP FI are working with a number of leading financial institutions to collaborate on a transformational project to investigate the linkages between ecological risk and country level risk in sovereign bonds.
The Ecological Footprint and biocapacity trends offer a new way of interpreting the financially material threats and risks that are currently not included in country ratings, investment strategies or risk management systems. The Ecological Footprint combined with biocapacity data provide a novel opportunity to better assess the risks to investments by analyzing resource dependency, trade relationships, commodity costing and risk-stability trends. This is a two-fold project, first it aims to assess the financial materiality of ecological risks relevant for the credit risk evaluation of government bonds; secondly, it will develop a methodology to explore how credit rating agencies, investors and financial information providers can integrate ecological data into their respective models.
Throughout the project a more comprehensive and risk-inclusive understanding of how to evaluate sovereign bonds will be developed. Investments risks can be decreased by gaining a better understanding of resource stability for both biocapacity creditors and national debtors. This project will enable those involved in sovereign bond markets to work towards better inclusion of financially-material environmental, social and governance (ESG) issues.
We invite you to join the launch on 17 October in Washington D.C ahead of the UNEP FI Global Roundtable. The event is meant for financial institutions with an interest in sovereign bond markets that may consider joining the project, as well as those investors and banks that have already confirmed their participation.