BAKU, Azerbaijan, May 3. Georgia's ESG Credit Impact Score is moderately negative, reflecting exposure to demographic and employment challenges, Trend reports citing the Moody’s Investor Service.
Georgia's overall exposure to environmental risks is moderately negative, driven by negative risks related to physical climate change, particularly heat stress, exacerbated by relatively high sensitivity related to the large size of the agriculture sector as an employer; a low proportion of the population with access to safe water also points to environmental risks, Moody's added.
Despite the fact that life expectancy is relatively high, the risk is also connected with an aging population, high rates of youth unemployment, poor wages, and only limited spending on health and education, Moody's reports.
On the other hand, Georgia has had significant success in building institutional capacity and economic reforms which have supported flexibility in labor and product markets, supporting moves towards higher value-added activities in sectors like agriculture and increased access to a broader range of export markets.