Virtual Roundtable: Rising Temperatures, Falling Ratings: The Effect of Climate Change on Sovereign Creditworthiness

Enthusiasm for ‘greening the financial system’ is welcome, but a fundamental challenge remains: financial decision makers lack the necessary information. It is not enough to know that climate change is bad.

Markets need credible, digestible indicators that translate climate science into material risks. Join this discussion to learn more about the ground-breaking research to produce the world’s first-ever climate-adjusted sovereign credit rating, bridging the gap between climate science and real-world financial indicators.

Led by Cambridge University and supported by LetterOne, this research initiative simulated the effects of climate change on sovereign ratings for 108 countries, and showed that climate-induced sovereign downgrades may begin as early as 2030, increasing in intensity and across more countries over the century. Insights from this will allow the financial community to understand the impact of long-term climate effects on sovereign and corporate debt.


BAB’s Corporate Citizenship & Sustainability Series is a bespoke series of roundtables and business briefings covering critical Environmental, Societal and Governance (ESG) issues in business and private sector-led initiatives in support of COP26, the UN Framework Convention on Climate Change and the UN Sustainable Development Goals (SDGs). This series provides a platform to stimulate debate and conversation amongst business leaders, relevant policy makers and stakeholders to advance the guiding principles of  COP26 for the U.S.-UK transatlantic corridor.


Tuesday 15th June 2021


5:00 pm – 6:00 pm BST
12:00 pm – 13:00 pm EDT



Meet the Speakers

Lord Davies

Chairman, LetterOne

To learn more about Lord Davies, click here.

Dr. Matthew Agarwala

Economist, Bennett Institute for Public Policy, University of Cambridge

To learn more about Matthew, click here.

Dr. Moritz Kraemer

Chief Economist, and Senior Fellow, SOAS Centre for Sustainable Finance

To learn more about Moritz, click here.

The Corporate Citizenship Sustainability Series is Sponsored By