State Attorneys General Charge Moody's Corporation Over Climate Modeling Scenarios

Twenty-two state attorneys general are charging Moody's Corporation, a major credit rating agency, with using abandoned science and undisclosed conflicts of interest to affect energy companies and states. The complaint centers on an August Moody's report that used Representative Concentration Pathways (RCP) 8.5, an extreme emissions scenario, to project future heat and water risks for American industry. Researchers concluded that RCP 8.5 had become implausible based on emissions trends, and the federal Office of Science and Technology Policy also opposed its use for federal planning.

The allegations challenge the credibility of Moody's Corporation's risk assessments, which are used by insurers, lenders, and investors to stress-test exposure and price future risks. This scrutiny comes as the Office of Science and Technology Policy has previously questioned the scientific basis of such extreme scenarios.

The Office of Science and Technology Policy and the National Science and Technology Council are tasked with developing an analytics innovation plan under an executive order regarding data initiatives and pandemic response.