ESG Wrap — More Expleo-ning needed on supply chains, ESG not part of the Polynt-count

9fin team

3 July 2023•3 min read

This is the weekly ESG Wrap, which highlights Featured 9fin ESG content such as TLDRs for all deals, news stories that have interested the ESG team this week, and 9fin ESG product updates.

9fin Featured Content

Expleo — ESG QuickTake (03/07/23)

Expleo has set GHG emission targets and improved its energy efficiency and renewable energy use performance, while HY peers report no ESG data or targets. However, its limited supplier monitoring processes and staff training do not fully address supply chain risk, and its targets to improve these are not time-bound.

Polynt-Reichhold — ESG QuickTake (27/06/23)

Polynt-Reichhold does not report total scope 2 and 3 emissions and does not have quantitative emissions reduction targets. Its fossil-based products have negative implications for human health and the environment. Although its operations pose health and safety risks, it does not report relevant metrics. One of its subsidiaries and its legal representative have been involved in administrative proceedings.

HY Company News

Twitter faces lawsuit over alleged non-payment for office services in four countries (03/07/23)

Twitter is being sued for allegedly failing to pay over $666,000 for services rendered by Facilitate, an infrastructure company based in Sydney. Facilitate claims that Twitter did not pay for sensor installation in London and Dublin, office fit-out in Singapore, and decommissioning of Twitter's Sydney office. The case, which seeks a collective payment of over A$1m ($665,000) was filed in the US district court of Northern California.

American Airlines Hit With Proposed Wage and Hour Class Action (30/06/23)

American Airlines Inc. is being sued by flight attendants in New York for violating New York Labour Law. The lead plaintiff, Brandon Himes, claims that the airline did not pay his wages on time and did not pay him for all hours worked. The lawsuit seeks to represent a class of workers in a wage and hour-class action.

Regulatory Round-up

ISSB issues inaugural global sustainability disclosure standards (26/06/23)

This week's big news was the launch of the International Sustainability Standards Board (ISSB) sustainability disclosure standards. Two new standards, IFRS S1 and IFRS S2, will enhance sustainability-related disclosures from companies worldwide. These standards will provide a common language for reporting climate-related risks and opportunities, ultimately enabling investors to make informed decisions.

FCA warns banks over ‘greenwashing’ in sustainable loans (29/06/23)

The Financial Conduct Authority has issued a warning letter to banks that lend to UK companies regarding "greenwashing" and "conflicts of interest" in sustainable loans. The FCA suggests that sustainability-linked loans should have targets that are similar to companies’ climate transition plans. The regulator is also exploring measures to enhance the sector, including the possibility of drafting a voluntary code of conduct.

Council reaches agreement on the nature restoration law (20/06/23)

Today the European Council agreed on a proposal for a nature restoration law. The proposal aims to restore 20% of the EU’s land and sea areas by 2030 and all ecosystems in need of restoration by 2050. It sets legally binding targets for restoration in different ecosystems, including agricultural land, forest, marine, freshwater, and urban areas.

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 chat with Pemberton’s Cassandra Fahy to learn more about ESG and Private Credit.