Primary analysis

UPDATE — TOI TOI & DIXI — ESG QuickTake (9fin) (4 Dec)

TOI TOI & DIXI, a portable toilet rental provider based in Germany, lacks emissions reduction targets and does not report its scope 3 emissions. Portable toilets rely on chemicals that can have negative environmental impacts, TOI TOI & DIXI has targets to reduce its use of biocides. The company has some strategies to increase circularity of its portable toilets, however it does not report its capex associated with sustainable solutions. TOI TOI & DIXI does not report if its sustainability strategy has board level oversight.

Roper Technologies (dba Indicor) — ESG QuickTake (9fin) (4 Dec)

Roper Technologies (Roper) is a diversified technology company operating three segments: application software; network software and systems; and technology enabled products. The group does not report any emissions reduction targets. Roper does not report water consumption or energy consumption targets either. Roper’s approach to cyber security is aligned with good practice. In 2022, Roper’s operating businesses notified customers regarding five data incidents. In all cases data exposure was limited.

Euroports — ESG QuickTake (9fin) (1 Dec)

Euroports, a port terminal operator based in the Netherlands, has a non-SBTi verified near term emissions reduction target, but lacks long term targets or targets to address its scope 3 emissions. The company does not report a significant portion of its scope 3 emissions stemming from ship’s energy combustion. Ports have a multitude of environmental impacts, however Euroports does not report any strategies to mitigate its impact. The president of part-owner Monaco Resources Group (now Sonel) was jailed for fraud in 2006, according to contemporaneous newspaper reports.

INNIO — ESG QuickTake (9fin) (30 Nov)

Innio, a manufacturer of engines for power and gas compression, has a robust decarbonisation plan and engages with suppliers on environmental issues. Its climate governance is in line with good practice. Contrary to good practice, it has not undertaken climate scenario analysis. Bought goods account for a big proportion of scope 3 emissions. Innio addresses this with targets to use more recycled material inputs. Innio has a robust conflict minerals policy.

Crown — ESG QuickTake (9fin) (30 Nov)

Crown, a US based packaging company, has SBTi-verified 1.5ºC aligned near term emissions reduction targets. Unlike its peers, Crown did not buy aluminium from certified sources in 2022. Crown’s target to consume 100% renewable energy by 2040 is less ambitious than some of its peers. Crown is involved in ongoing proceedings brought by the French Competition Authority. If Crown is found to have violated French law, it could face a financial penalty. Crown is also involved in an $18.1m lawsuit with the US Department of Justice related to misclassifying imports between 2004 and 2009.

Weener Plastics — ESG QuickTake (9fin) (30 Nov)

Weener Plastics, a plastic manufacturing company based in the Netherlands, has committed to setting near term and net zero SBTi targets. Weener has taken steps to cut its energy consumption and increase its reliance on renewables. Due to the nature of its operations, Weener is at risk of regulatory, transitional, and reputational risks, however, it does not report if it has conducted analysis to assess its level of risk. Weener has identified some measures to reduce the environmental impact of its products but, unlike peers, it lacks time-bound and measurable targets to improve the sustainability of its products.

BMC Software — ESG QuickTake (9fin) (29 Nov)

BMC Software, a software-as-a-service US-based company, has a net zero target but provides limited information related to its decarbonisation pathway. It also lacks quantifiable and time-bound targets to address emissions from electricity consumption and water, unlike peers. BMC Software’s cybersecurity policy is in line with good practice but lacks detail in some areas. Its supply chain due diligence policy is also in line with good practice.

Lottomatica — ESG QuickTake — UPDATE (9fin) (28 Nov)

Lottomatica does not have any emissions reduction targets. Lottomatica operates in the gambling industry and could be on exclusion lists. Mitigation measures may be insufficient to prevent societal impacts. The proposed reorganisation of Italian gambling regulation could materially impact Lottomatica. The company has taken actions to mitigate against problem gambling, although its approach to customer monitoring is less clear than peers. Lottomatica experienced cyber attacks between December 2021 and February 2022, which had a moderate impact.

9fin Featured Content

ESG Sector Selector — Food industry facing rising investor pressure (9fin) (1 Dec)

The food industry faces rising investor pressure due to its high environmental impact. Current and upcoming EU regulations are bringing these issues to the forefront. There is also high media scrutiny on companies’ supply chains being linked to social issues. Food companies risk exclusion from portfolios if they do not address their exposure to ESG risks. 9fin’s guidance lays out six key areas to consider when assessing companies in the food and agricultural sector.

Hawaiian entities lawyer up as they brace for wildfire litigation (9fin) (1 Dec)

Hawaiian Electric, Kamehameha Schools, and the State of Hawaii are seeking advice from legal counsel as lawsuits tied to the Maui wildfires continue to pile up despite the state’s offer to compensate victims through a recovery fund. The lawsuit follow the devastating wildfires that hit Maui in August. Hawaiian Electric acknowledges that its power lines started the fires

HY company news

Maersk Reaches Settlement Over Ship That Blocked the Suez Canal (30 Nov)

Maersk reached a settlement (details not disclosed) for a lawsuit filed by companies stuck behind its ship that was responsible for blocking the Suez Canal in 2021. At the time, the blockage caused shipping lanes to delay or divert vessels, creating supply line disruption.

UAW Strike Cost Ford $1.7bn in Profit (30 Nov)

Ford reported its labour deal costs, alongside its new profit forecasts, after withdrawing them in October due to the six week strike which ended in a deal. Ford predicts the deal will add $8.8bn in cost over four years, which will prove a large financial burden as it looks to invest more in the transition to electric and self-driving cars 

EDF is Selling Europe's First Green Bond For Nuclear Energy (28 Nov)

EDF looked to raise €500m for a green bond that will be used to finance nuclear energy projects. Specifically, the utilities company aims to invest in existing French nuclear reactors via look-back (refinancing) which it states is aligned with the EU taxonomy.

News stories

UAE planned to use COP28 summit for oil deals, documents show (27 Nov)

Leaked briefing documents obtained by the Centre for Climate Reporting and the BBC suggest that the United Arab Emirates (UAE) planned to use the COP28 climate summit to pitch oil and gas deals to foreign governments. The leaked documents outline plans for discussions on fossil fuel deals with 15 countries, including China, Brazil, Germany, and Egypt. However, a COP28 spokesperson has dismissed the documents as "inaccurate”.

UK bans vague ‘sustainability’ fund labels in greenwashing crackdown (28 Nov)

The UK's Financial Conduct Authority (FCA) is set to implement anti-greenwashing rules, banning vague references to "sustainability" in fund marketing. Effective from December next year, asset managers marking their funds as sustainable must choose one of four specific fund labels and publish a two-page summary of their evidence-based stewardship strategy and "theory of change," aligned with standards like greenhouse gas targets or the EU's green activities taxonomy.

Moody’s Says $4 Trillion of Debt Exposed to Environmental Risks (28 Nov)

According to Moody’s, the exposure of debt to environmental risks has surged, exceeding $4trn in less than 10 years. 16 sectors, up from nine in 2015, now confront "high or very high environmental credit risk," with oil and gas, mining, and chemicals being particularly vulnerable.

Carbon removals: Parliament wants EU certification scheme to boost uptake (21 Nov)

In the EU, MEPs have agreed to establish a system to improve the EU’s capacity to quantify, monitor, and verify carbon removals. MEPs have demanded that the scheme must be in line with international standards and that an ‘EU registry’ must be set up to ensure transparency, provide information to the public, and avoid the risk of fraud and double counting of carbon removals. They also see a need to distinguish between the definitions, quality criteria, and the rules on carbon removals, carbon farming, and carbon storage.

GRI - Setting the standard for transparency on climate change impacts (21 Nov)

A public comment period is underway for the GRI’s drafted Climate Change Standard. The drafted Climate Change Standard will allow organisation’s to disclose climate change transition and adaption plans and actions, outline annual progress on emissions reduction targets, and report on their use of carbon credits and GHG removals.