9fin featured content

Iceland — ESG QuickTake (9fin) (24/07/23)

TLDR: Iceland’s emissions reduction targets are not SBTi-verified. It has already achieved its near-term scope 1 and 2 targets. However, due to a lack of scope 3 reporting, it is unclear whether it is on track towards meeting its net zero target. In 2022, Iceland backtracked on its claim to ban the use of palm oil in its products, citing sharp rises in sunflower oil prices. In 2017, Iceland was fined £2.5m over the death of a contractor who fell through a ceiling in 2013.

Rain Carbon — ESG QuickTake (9fin) (24/07/23)

TLDR: Rain Carbon is an energy-intensive company based in the US, producing industrial input materials from petroleum and steel by-products such as petroleum coke and coal-tar. It has not committed to reducing GHG emissions, but it does recover much of its energy input and indirectly offsets emissions for suppliers and customers. It does not have a company-wide system for water and air pollutant management or a supplier code of conduct. Its board does not have regular oversight of ESG. It has a history of environmental violations, and there is a potential for further sanctions due to operations in Russia.

HY company news

Drugmaker Mallinckrodt in talks with hedge funds to avoid opioid settlements, Wall Street Journal reports(26/07/23)

According to the Wall Street Journal, drugmaker Mallinckrodt is in talks with hedge funds about filing for bankruptcy in order to avoid payments intended to help people addicted to opioids. As part of a prearranged deal with the funds, Mallinckrodt will propose to write off around $1 billion of what it owes to addiction victims, state, and local governments, while making a one-time payment of roughly $250 million. Last year, it agreed These details were provided by sources familiar with the discussions, as reported by the Wall Street Journal.

Herc Rentals hits highs, but impacted by actors strike (25/07/23)

Herc Rentals' Q2 results were impacted by the US actors' strike, causing entertainment-related activity to almost halt and revenues in that sector to drop 55%. However, the company's core construction and industrial markets drove rental revenues up 18%. Herc Rentals is repositioning some of its entertainment fleet in anticipation of the shutdowns.

Thyssenkrupp Gets EU Approval for €2 Billion Green Steel Aid (20/07/23)

Thyssenkrupp AG has received approval from the European Union for a €2 billion package of state subsidies from the German government to invest in green steel production, which includes direct grants and a conditional payment to support the company's bid to decarbonise its steel production and accelerate renewable hydrogen uptake. The company plans to produce climate-friendly steel at its site in Duisburg by the end of 2026.

News stories

Explainer: Banks tread tricky tightrope with politically exposed clients (26/07/23)

The NatWest and Nigel Farage dispute shows the challenges banks face in dealing with politically exposed persons. Banks cannot refuse non-sanctioned customers on political grounds but must apply extra scrutiny to PEPs. UK regulators have defended freedom of expression and urged banks not to discriminate against customers based on their political views. Proposed new rules aim to tighten supervision of banks suspected of making politically motivated decisions to deny services to customers with lawful opinions. Banks will need to clearly explain any closure and customers will be given 90 days to challenge a decision through the Financial Ombudsman Service or find a replacement bank.

Stock Exchange Regulators Back Global Climate-Reporting Rules (25/07/23)

Regulators of the world's top stock exchanges, including the US SEC and CFTC, have endorsed the International Sustainability Standards Board's climate reporting standard, which includes requirements to report Scope 3 emissions and climate-related risks and opportunities. This adds momentum to efforts to establish the rules as the global baseline for climate reporting standards. IOSCO's endorsement of a single set of climate-reporting standards is an important milestone in providing investors with reliable information on companies' climate risks and opportunities. IOSCO oversees more than 130 member jurisdictions, which represent over 95% of global market capitalisation.

ING looking to integrate biodiversity KPIs further into lending (24/07/23)

ING is setting up a working group to assess how to integrate biodiversity into its operations, but it anticipates challenges due to the difficulty of measuring and standardising biodiversity compared to carbon. The Dutch bank has already begun using biodiversity metrics as KPIs within lending and has structured green bond frameworks to help clients attract financing for projects that reduce pressures on biodiversity and conserve nature. ING already automatically excludes certain economic activities that could degrade nature, such as deforestation or certain aspects of logging. It also has strict rules on sectors such as fisheries.

Sustainable Aviation Fuel Leader Talks Green Premiums and Impact of Tax Incentives (19/07/23)

Low-carbon jet fuel is struggling to become more widely used due to its high cost, which is currently 2.3 times more expensive than conventional fuel. The aviation industry is one of the hardest to decarbonise due to the need for energy-dense fuels for long-distance travel. Emerging technologies that convert solid waste into sustainable aviation fuel may help to reduce costs and increase adoption.