Secondary Analysis

Secondary Digest — Forvia, Hurtigruten, Rubix, Medline Industries (9fin)

Find ESG secondary market coverage on Forvia, Hurtigruten, Rubix, and Medline Industries in this week’s Secondary Digest. Forvia is not on track to achieve the sustainability performance target (SPT) that’s part of its sustainability linked bond (SLB) issuance. Hurtigruten reported two data breaches to regulators and had 14 internally recorded data privacy breaches. Rubix has caught up to its competitors and set Science Based Target initiative (SBTi) verified emissions reduction targets. Medline Industries’ quality management practices are in line with global standards, but its approach has potential shortfalls. 

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European Sustainability Reporting Standards — Six more years of unstandardised ESG data (9fin) (08/08/2023)

On 31 July 2023, the European Union adopted the European Sustainability Reporting Standards (ESRS) which establish a set of common disclosure requirements for companies. The ESRS are designed to increase investor access to robust and comparable sustainability data, however, the watered down Act will not be fully implemented until 2029. This is not a great prospect for investors in need of robust ESG data.

HY company news

Entain sets aside £585m for potential settlement over bribery probe (10/08/2023)

Entain, the British gambling company, has reportedly set aside £585m ($744.5m) for a potential settlement with UK tax authorities related to alleged historical misconduct at its former Turkish business. Entain’s Chief Finance Officer Rob Wood said in its H1 earnings report that the settlement would impact the company’s bottom line across its four-year pay period. 

Public could receive hundreds of millions as water firms face sewage lawsuit (09/08/2023)

A class action lawsuit brought by Leigh Day against six water companies alleges they have failed to accurately report sewage spills and pollution to the England and Wales regulators. The public could receive hundreds of millions of pounds in compensation. The lawsuit claims that the water companies breached competition law and misleading the Environmental Agency by underreporting the number of spills which impacts the price they charge their customers. 

News stories

Is Anti-ESG here to stay? (11/08/2023)

Christopher Wigley, a sustainable bonds specialist, considers the history of responsible investment in the US. He argues the US is a pioneer of responsible investment and that the Anti-ESG movement is temporary, since ESG goals combine financial and ethical values.

Democrat lawmakers urge SEC to release climate disclosure rules (08/08/2023)

Following a long delay by the US Securities & Exchange Commission (SEC) to release its draft climate-related financial disclosures, a group of 77 US lawmakers has urged the SEC to act without delay. The SEC consulted on its draft disclosures in 2022 and its final rules were expected to be published in 2023, but these have been delayed indefinitely. The group of Democrats, in a letter to the SEC, urged the Commission to look beyond the contentious US political climate around ESG investing and align with requirements the EU and UK are developing.

S&P drops ESG scores from debt ratings amid scrutiny (08/08/2023)

S&P Global has stopped issuing corporate borrowers’ numerical ESG scores, a practice it began in 2021. There has been growing criticism of ESG scoring transparency, but S&P claimed its qualitative rankings are more detailed and transparent than numerical scores. 

Blackstone raises $7bn for ‘energy transition’ private credit fund (10/08/2023)

Blackstone has raised $7.1bn for its private credit energy transition credit fund. Last year, the investment manager estimated it could direct $100bn to energy transition and climate change across its business over the next 10 years. The amount raised surpassed its $6bn earlier target and will invest in sectors like residential solar and renewable electricity generation and storage. 

ESG strategy receives tough feedback in latest Bloomberg survey (03/08/2023)

Bloomberg’s 2023 survey of its mostly US based terminal client's sentiments on ESG found that clients not directly engaged in ESG are becoming more skeptical. It found that around 70% of surveyors not directly involved in the strategy consider it a passing fad. The survey also showed fewer of those engaged in ESG expect it to become more critical in business and markets.