9fin Featured Content

IHO Verwaltungs (Schaeffler) — ESG QuickTake (9fin) (23/03/23)

Bonds for Schaeffler's holdco included a SPT setting an emissions reduction target of 1.5°C for scope 1 and 2 emissions at Schaeffler, but 93% of emissions are scope 3. It has quantified targets for renewable energy consumption and freshwater use, and 4.9% of total revenue was taxonomy-aligned in 2022. Schaeffler has been accused of exposing individuals to toxic chemicals, and has been investigated by authorities in the US and EU for possible violations of antitrust laws.

Tricor-Vistra — ESG QuickTake (9fin) (22/03/23)

Tricor-Vistra has some positive ESG policies in place, including diversity and inclusion policies, policies related to ESG risk management, and some good cyber security measures. However, the company has not set operational greenhouse gas emission reduction targets and does not have quantitative targets to increase gender diversity across its workforce.

ESG within LevFin — New insights from issuer data (9fin)(22/03/23)

Back by popular demand, our second ESG insight report analyses the state of ESG data within the LevFin market, drawing on our high-yield issuer ESG database. While there is increasing pressure to use ESG data to inform investment decisions, issuers are still struggling to find ESG data. The report provides updates to the last issue’s key takeaways as well as new metrics and insights.

HY Company News

World's first octopus farm proposals alarm scientists (16/03/23)

Nueva Pescanova plans to build the world's first octopus farm, raising concerns over the welfare of the creatures. The farm in Spain's Canary Islands would raise about a million octopuses annually for food, but some scientists call the proposed icy water slaughtering method "cruel".

News Stories

ECB Discloses Decarbonization Progress of €385 Billion Corporate Bond Portfolio (23/03/23)

The ECB has published its first climate-related financial disclosures for its corporate sector and non-monetary policy portfolios as part of its climate action plan. The reports provide information on the Eurosystem's carbon footprint, exposure to climate risks and risk management. Its portfolio's carbon intensity declined significantly over the past few years, with tonnes of CO2 per million euros of revenue falling by 30%.

UK regulator takes aim at index providers over greenwashing (22/03/23)

The UK's financial regulator has warned index providers that they are fuelling greenwashing due to the subjective nature of ESG factors and how they are incorporated into benchmark methodologies. The government is expected to announce a consultation on whether the FCA remit should be extended to include ESG ratings providers.

Germany's sustainable finance advisory group calls for social taxonomy (22/03/23)

The German government's expert advisory committee has called on the European Commission to address challenges with the EU taxonomy, including the development of a social taxonomy and a separate framework for transitional activities. The German SF Advisory Committee has proposed that the EU taxonomy should be enlarged towards transitional activities and social activities, such as social housing and care services.

UK water industry needs tougher policing, says Lords report (22/03/23)

The UK government and regulators are failing to police the privatised water sector adequately, with companies prioritising financial returns at the expense of infrastructure investments. The House of Lords industry and regulators committee recommended that the government and regulators should do more to hold the industry to account for pollution and that executives should not be entitled to bonuses if their companies missed key performance targets.

ESG tops regulatory demands in finance as UK, EU rules diverge, KPMG says (13/02/23)

Financial firms in Britain and the EU are under significant pressure to comply with diverging environmental, social and governance (ESG) rules, with the biggest differences in areas like customer protection and access to markets. Britain aims to realign with EU guidelines to regain entry to the bloc's financial market while ensuring high international standards are maintained

Regulatory Round-up

EU Green Claims Directive Proposal (22/03/23)

The European Union has proposed the Green Claims Directive (GCD), which aims to crack down on greenwashing by regulating how companies substantiate and communicate their green claims (such as the environmental performance of products and services). It will require companies to make supporting evidence available alongside a green claim and will apply to all claims and labels displayed in products, services or companies across the EU single market.

Right to Repair Directive (22/03/23)

The European Commission has adopted a proposal to make it easier and more cost-effective for consumers to repair goods, resulting in savings for consumers and reducing waste. An online matchmaking repair platform will be introduced to connect consumers with repairers and sellers of refurbished goods in their area. Additionally, a European quality standard for repair services will be developed to help consumers identify repairers who commit to a higher quality.