Dennis Price | ImpactAlpha
Better risk assessment tools could impact the flow of capital to coastal municipalities
Image credit: FEMA National Flood Hazard Layer
A better understanding of the risks of flooding and other realities of climate change among bond investors could impact the flow of capital to coastal municipalities.
In November, credit rating agency Moody’s warned cities and states that failing to address climate risks could hurt their bond ratings, potentially affecting the flow of trillions of dollars to coastal municipalities. “What we want people to realize is: “If you’re exposed, we know that,” Lenny Jones, a managing director at Moody’s, toldBloomberg. “We’re going to ask questions about what you’re doing to mitigate that exposure.”
Investors are taking note and some are taking steps to learn more about the climate risks to their bond investments in coastal areas.