Market Wrap
ESG Wrap — Salt net zero target needs seasoning, no fish left in the sea for Thames Water
- 9fin team
•5 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.
Primary Analysis
PPF — ESG QuickTake (13/07/2023)
PPF is a provider of retail, wholesale and infrastructure telecommunication based in the Netherlands. It has yet to develop a strategy to cut its GHG emissions and lacks a deadline to become carbon neutral. PPF's total emissions grew 17% between 2020 and 2021, mostly comprised of scope 3 GHG emissions, linked to its long-term infrastructure plans. These are set to increase further. It has no (0%) women on its board of directors, which is far behind its peers. The telecoms industry is increasingly at risk of cyber attacks, and PPF's reporting on its cyber security measures at the group level is limited.
Zentiva — ESG QuickTake (13/07/2023)
Zentiva is a pharmaceutical producer based in the Czech Republic. It has committed to becoming carbon neutral by 2030, although this target is not aligned with science-based guidance on emissions targets. Its operational emissions have increased YoY since 2020. 75% of Zentiva's production facilities are located in areas with water stress, but the company looks to be responsibly managing its water use. The company has faced product recalls, although none of these resulted in material consequences.
Salt — ESG QuickTake (12/07/2023)
Salt is a mobile network operator based in Switzerland. It has set a net zero target that is not consistent with SBTi guidance and is not quantified. Although the company’s market-based operational emissions rose by 2.4% between 2021 and 2022, its location-based operational emissions fell by 15.7%. It has introduced several circularity initiatives but has not reported any related data. In 2021, Salt's injury rate declined, but the percentage of women on its board is much lower than other telecommunications companies. Due to its reliance on Chinese telecommunication equipment, Salt remains vulnerable to nationally imposed restrictions on telecommunications suppliers.
AnQore — ESG QuickTake (11/07/2023)
AnQore is a specialist chemical supplier based in the Netherlands. has set ambitious GHG reduction targets but is not on track to meet them. The company, along with peers, has developed a sustainable form of acrylonitrile, but the certification for these has been criticised. AnQore is on track to meet its health and safety targets. It has also set gender diversity targets but has not disclosed any initiatives to reach them. The company has sustainability targets for its top suppliers. It does not disclose information about its cyber security processes or systems, but this is a big risk for the industry.
HY Company News
Thames Water Has Worst Pollution Record Since 2013, Agency Says (12/07/2023)
According to the UK Environmental Agency, Thames Water contributed to more than a third of England’s serious pollution incidents in 2022, meaning it was Thames Water’s worst year for pollution incidents in over a decade. Thames water supplies roughly 27% of the UK’s water. The report comes in the same week that it was reported that over 1,400 fish were killed by Thames Water's pollution of rivers and that it missed targets on leakages, pollution and usage.
Around 11 million patients have been notified that their personal information has been compromised following a data breach at HCA Healthcare. An unauthorised party posted the data on an online forum, placing victims at a greater risk of identity theft and other frauds. Data breach lawyers at Console & Associates, P.C. are investigating claims on behalf of HCA Healthcare patients.
Twitter owes ex-employees $500 million in severance, lawsuit claims (12/07/2023)
Twitter's former head of its employee benefits programme filed a proposed class action against Twitter on Wednesday. The lawsuit alleges Twitter refused to pay over $500 million in severance to thousands of employees that were laid off following Musk’s takeover of the company.
UK operating licence of William Hill owner 888 placed under review (14/07/2023)
The UK Gambling Commission is in the process of reviewing 888 Holding’s, the owner of William Hill, license to operate in the UK. The review follows concerns related to a leadership bid from three industry veterans, and their past roles at rival gambling firm Entain. Entain is being investigated by the UK Tax Authority for alleged offences, including bribery. The news led to a 25% drop in 888 Holdings' London-listed shares.
News stories
Green Bonds Take Big Lead Over Fossil-Fuel Debt Deals (05/07/2023)
According to Bloomberg data, in the first half of 2023 more money was raised in debt markets for environmentally friendly projects than for fossil fuels. Almost $350 billion was raised from green bond sales and loan arrangements, compared with $235 billion of oil, gas and coal-related financing.
Asset Managers, Banks Want Tougher ESG Reporting Rules for Firms (06/07/2023)
Close to 100 European asset managers and banks have collaborated with ESG fund associations and the PRI (Principles for Responsible Investment) network group to pressure the EU to tighten its proposal for the Corporate Sustainability Reporting Directive. Under the proposal, companies will be able to decide what information is material to report.
More firms report on deforestation, yet few have plan to stop it, CDP says (06/07/2023)
According to CDP (Carbon Disclosure Project), the number of companies that report on deforestation risk has risen 300% during the last 5 years. In 2022, 60% of companies disclosed some deforestation-related risk, but less than 10% had a made a “robust” public commitment to end deforestation by 2025.
Regulatory roundup
EU rewilding plan survives centre-right challenge (12/07/2023)
EU parliament members approved the Nature Restoration Law after earlier voting against a motion to reject the fiercely contested plan. Under the law, the EU will make a commitment to rewild a fifth of the EU’s land and sea habitats by 2030 at the latest.
Countries adopt mid-century greenhouse gas emissions goal for shipping
Member countries of the International Maritime Organisation have agreed on a new plan to reduce emissions in the shipping industry. Under the plan, countries agreed to achieve net zero emissions by 2050. Environmental organisations have criticised the plan, arguing that it lacks ambition.
