Primary analysis

SUSE — ESG QuickTake (9fin) (25 Oct)

TLDR: SUSE, an open-source software company, has SBTi-verified 1.5°C aligned near term targets covering scope 1, 2 and 3 emissions. SUSE’s EU taxonomy-eligible turnover as a percentage of total turnover is 18.4% (capex: 33.6%, opex: 0.3%). SUSE does not provide any time-bound targets to use less energy at its data centres or to reduce electronic waste. Cyber security has been identified by SUSE as a principal risk for the business. The group reports no customer data losses in FY 22 (FY 21: one data breach).

HY company news

GM says strike has cost $800m as 5,000 more workers walk out (24 Oct)

General Motors (GM) said the US car workers’ strike was costing it approximately $200m a week. The UAW strike has lasted over five weeks affecting GM, Ford, and Stellantis, and has targeted a growing number of plants and part depots. GM reported that the strike has cost $800m in operating profit. 

Panera Bread's Charged Lemonade Is Linked to Death in Lawsuit (24 Oct)

Panera Bread is involved in a lawsuit related to the caffeine levels in its Charged Lemonade. The lawsuit alleges that a student with a heart condition died after drinking the heavily caffeinated drink. The lawsuit claims that the company failed to properly warn its customers about the potential dangers of the drink and used misleading marketing. 

AECOM to pay $11.8 million to resolve False Claims Act allegations in connection with hurricane disaster relief (24 Oct)

AECOM, an architecture firm based in Texas, has agreed to pay $11.8m to the US Office of Public Affairs to settle clams that it knowingly submitted false claims to the Federal Emergency Management Agency (FEMA) for the replacement of certain educational facilities damaged by Hurricane Katrina. Between 2006 and 2010, AECOM served a contractor in support of FEMA disaster recovery efforts following Hurricane Katrina.

News stories

Water crisis threatens $58 trillion in economic value, food security and sustainability (16 Oct)

A report by the World Wide Fund for Nature (WWF) uncovers that the annual economic value of water and freshwater ecosystems is estimated to be $58tn, equivalent to 60% of GDP. However, freshwater ecosystems are diminishing wherein freshwater wildlife populations have decreased by 83% since 1970. The report finds that the degradation of natural water systems is undermining action on climate and nature and hampering progress towards the UN Sustainable Development Goals. 

Why biodiversity is about to go mainstream in ESG investing (26 Oct)

According to data from the European Securities & Markets Authority, biodiversity and nature themed funds have expanded, although they still represent a small fraction of the sustainable investing market. The landmark decision at COP15 to preserve 30% of global ecosystems by 2030 acted as a key inflection point for the growing demand for investment solutions that facilitate allocation of capital to nature themes. Biodiversity conservation has featured as a use of proceeds in 16% of ESG bonds YTD, up from 5% in 2020. 

Republican-led US states appeal ruling allowing Biden ESG investing rule (26 Oct)

26 states and an oil and gas company, Liberty Energy, are appealing a a US District Judge’s decision to throw out their lawsuit challenging President Biden’s decision to allow employee retirement plans to consider ESG issues in investment decisions. The rule was adopted in 2022, reversing a 2020 rule by former President Trump which restricted ESG considerations in retirement plans. The rule applies to plans that invest a collective $12tn. 

External reviews are the ‘main sticking point’ for sustainable loan deals (30 Oct)

The Loan Market Association (LMA) reports that challenges associated with external reviews for sustainable deals are now acting as the main barrier to completing transactions. As a result, the LMA, in association with the Asia Pacific Loan Market Association, are working on updating their guidance. The updated guidance intends to address the variation in external review processes and address potential challenges with verifying scope 3 emissions. 

Product hints, tips, and updates

Sign up for 9fin’s latest ESG webinar “Nature risks: a material consideration for lenders.” The webinar will take a deep dive into the material financial impacts associated with land degradation and biodiversity loss. Our 9fin host Jennifer Munnings will be joined by Peter Elwin, Director of Fixed Income at Planet Tracker, Zaneta Sedilekova, Director at Climate Law Lab, and Charlotte Apps, Sustainable Investment Analyst at Fidelity International.

Find out more information here!