Measuring climate-credit risk relationship using world input-output tables

The Basel Committee recommended the use of input-output tables to properly measure climate risks. However, majority previous studies only limits carbon emissions and this is not applied in risk ratings. existing (E) ratings (scores) was modified or transformed from Sustainalytics full scores using tables. Positive relationship between credit risks estimates at industry level identified, justifies interest rate discount granted firms green industries. Thus, for purpose lending degree greenness derived should be considered, substituting by easily observable publicly available marginal like those provided Sustainalytics.