9fin Featured Content

Owens Illinois — ESG QuickTake (12/05/2023)

The company’s green financing has the potential to generate material environmental impacts, but no specific plans are in place with regards to the bond’s use of proceeds. OI’s GHG reduction targets lag peers Verallia and Ardagh. In 2020, a subsidiary filed for Chapter 11 bankruptcy protection to resolve asbestos-related liabilities. In 2022, OI’s European segment recorded $24m of expenses related to emissions trading allowances. As of Q2 2023, the company is under income tax examination in various jurisdictions.

Adler Pelzer — ESG QuickTake (11/05/2023)

Adler Pelzer’s 2022 CDP report contains some forward-looking climate information, although there are several shortfalls. The company does not report its hazardous substances/waste management policy or performance, despite heavy use of petroleum-based products. In 2021, an employee of HP-Pelzer s.r.o. suffered a serious injury at work, which resulted in an above-elbow amputation. The group operates one site in Russia, although operations in Russia amounted to 0.3% of revenues in 2022.

Campari — ESG QuickTake (10/05/2023)

Campari’s sustainability-linked financing facilities have three associated KPIs, which are mixed in terms of ambitiousness and materiality. 9fin cannot evaluate Campari’s emissions target as it has only provided scope 3 emissions data for 2022. The group lags peers in renewable energy consumption. In 2020, Campari was the victim of a non-financially material ransomware attack.

Eramet — ESG QuickTake (10/05/2023)

Eramet’s SPTs for its May SLB issuance are ambitious and contribute towards its climate targets. The company has further targets and plans for reducing greenhouse gas and dust emissions and follows appropriate tailings management processes. Eramet has targets for engaging with local stakeholders, but has been involved in controversies regarding its impact on indigenous groups. It has displaced populations, although with authoritative oversight — and has assigned human rights experts to all of its sites. Eramet identified a potential financial fraud incident in 2021.

Dana Incorporated — ESG QuickTake (10/05/2023)

Dana’s emissions reduction targets are more ambitious than its competitors and it is aligned to an SBTi 1.5ºC temperature increase pathway. Dana lags behind competitors in gender diversity. Dana has faced governance issues in the past, including a settlement for knowingly misleading investors about the company's financial problems in the months before it filed for bankruptcy protection in 2006.

Crown: UNGC/OECD Compliance Framework, SDG Alignment Framework

Modulaire Group: UNGC/OECD Compliance Framework, SDG Alignment Framework 

Find ESG secondary market coverage on Pasubio, Drax, Zenith Leasedrive, Graphic Packaging International, and Canpack in the inaugural 9fin ESG Secondary Digest.

HY Company News

Bowlero Corp

CNBC reported the company is the subject of a federal investigation by the US Equal Employment Opportunity Commission. 9fin was unable to verify an original source for this claim.

Seperately, law firm Lowey Danneberg P.C is investigating Bowlero corp for potential breaches of securities laws and other business practices carried out by Bowlero officers and employees.

Tesla to recall 1.1 million cars in China over potential safety risks, Chinese regulator says | CNN Business(12/05/2023)

According to China’s top market regulator, Tesla will recall over 1000 vehicles produced between 2019 and 2023. The cars are to be recalled due to vehicle issues that could increase the risk of collision. Tesla plans to make adjustments to the vehicles in order to reduce the risk.

News Stories

The shaky logic of corporate emission reduction claims (02/05/2023)

Current emission reduction claims made by companies in their annual disclosures may not align with actual reductions in greenhouse gas (GHG) emissions. Many claims lack additionality, meaning they do not result in emissions reductions beyond what would have happened anyway. Immediate and additional emission reductions can be achieved through energy efficiencies, electrification, and renewable energy purchases. However, claims based on unbundled renewable energy certificates (RECs) do not lead to additional emissions reductions. 

Regulatory Round-up

Biden takes aim at power plant emissions after earlier rules blocked (11/05/2023)

US President Joe Biden’s administration has proposed new rules to regulate greenhouse gas emissions from the country’s power plants. The standards would be the first direct regulation of carbon dioxide emissions from existing power plants. The rules rely on technologies such as carbon capture and storage and low-emission hydrogen fuel. While the proposal is expected to have limited emissions impact, it follows a Supreme Court ruling that curtailed the EPA’s ability to regulate power plant emissions.

G-7 Finance Chiefs to Add New Supply-Chain Proposal in Statement (12/05/2023)

Finance chiefs from the G-7 countries are working on a proposal for a new partnership on supply chains. The partnership would require participating countries to meet minimum standards with human rights and environmental policies. Efforts to diversify supply chains, particularly for rare earths and renewable energy resources, are also being discussed.

Parliament backs new rules for sustainable, durable products and no greenwashing | News | European Parliament(11/05/2023)

EU politicians backed draft legislation to improve product labelling and durability and to put a stop to misleading claims. The legislation foresees banning the use of general environmental claims like ‘environmentally friendly’, ‘natural’, ‘biodegradable’, ‘climate neutral’ or ‘eco’ if these do not come with detailed evidence. It also aims to ban environmental claims that are based solely on carbon offsetting schemes. See more info in 9fin’s Educational on the Green Claims Directive.

Industry awaits update to FTC’s ‘green guides’ (15/05/2023)

The US Federal Trade Commission (FTC) has concluded a public consultation on its anti-greenwashing guidelines, which are used to regulate environmental marketing claims. Public feedback on the current version of the guidelines was mixed. While consumer advocacy groups proposed tougher enforcement for financial products, companies are fearful of increased regulation and enforcement.

Product hints, tips, and updates

Secondary Coverage: As part of 9fin's expanding High Yield ESG coverage, we will produce secondary market analysis for a number of credits. Stay on the lookout as we continue to grow our ESG coverage!

Cloud 9fin: Listen to the ESG team on the Cloud 9fin podcast to learn about changes to the Sustainable Finance Disclosure Regulation (SFDR) and what they mean for investors.