Responsible Investing

  • Sustainability a far cry from the fusty world of US PPs

    Sustainability a far cry from the fusty world of US PPs

    Several chances to demonstrate commitment to corporate sustainability have occurred in the US private placement market recently, and the market has fallen short in almost every case. Most of the PP market is as unfamiliar with using the term 'ESG' as it is to yelling 'YOLO'.

  • BW Energy gets shrunken IPO done in teeth of oil fears

    BW Energy gets shrunken IPO done in teeth of oil fears

    BW Energy, the oil exploration and production company, has priced its Oslo IPO after lowering its valuation target and shrinking the deal, having encountered resistance from investors as the coronavirus outbreak in China knocked 20% off the oil price.

  • Oil and gas's tobacco moment

    Polite society does not tolerate smokers the way it used to. What was once a ubiquitous habit is now banished to outdoors in many countries. Tobacco investment is a rarer beast too these days, reflecting how deeply ethical preferences can affect capital markets. Now oil and gas securities could be about to face a similar shift.

  • Oil equity deal plans hit by virus fears, but are investors turning green?

    Oil equity deal plans hit by virus fears, but are investors turning green?

    Equity investors are losing their appetite for oil and gas stocks, just at a time when three of the biggest IPOs being planned in EMEA are from that sector. The coronavirus outbreak is sapping Chinese demand, leading to a weak oil price. But some bankers believe investors are also making a more fundamental shift away from fossil fuels, which could even lead to a permanent tipping point. Sam Kerr and Jon Hay report.

  • Lyxor launches second suite of ESG high yield ETFs

    Lyxor has launched a suite of environmental, social and governance high yield exchange-traded funds, following BlackRock’s iShares into the burgeoning market for investment products screened for sustainability. The French firm switched its investment grade ETF to follow a sustainable index last year, but opted to create a new product line for high yield.

  • High yield in a hiatus — IG minds turn to ESG

    High yield is mostly in a hiatus, with issuers waiting for full year numbers before pushing back into the market. Only UK broadband company TalkTalk is issuing this week, offering a rare slug of sterling supply to a market that has been euro-dominated for most of the year. For the corners of the loan market without such problems, though, there is still a bid, even for credits with stories.

  • Sustainability: more stick, less carrot

    Sustainability: more stick, less carrot

    Sustainable finance players are enthusiastic about regulation, which they expect to bring clarity and order to the market. It may — though when the new EU rules are implemented they are likely to irk participants more than they expect. But what would be really effective are direct actions that bypass finance.

  • Esma opens way to deeper regulation of ESG

    Esma opens way to deeper regulation of ESG

    The European securities regulator will start to probe sustainable finance, looking for risks including greenwashing and climate risks, and may use stress tests in some market segments. Green finance experts welcomed the new Strategy on Sustainable Finance put out by the European Securities and Markets Authority on Thursday as a step towards fully integrating environmental, social and governance issues into financial regulation.

  • LSTA seeks to shed light on ESG in lev loans

    LSTA seeks to shed light on ESG in lev loans

    The Loan Syndication and Trading Association this week released a questionnaire for leveraged loan borrowers on their environmental, social and governance policies, seeking to give loan investors more insight into the importance of ESG practices among corporate borrowers.

  • Give us regulation, say MENA green leaders

    Give us regulation, say MENA green leaders

    Market participants at the Euromoney Sustainability MENA Conference in Dubai this week highlighted the importance of regulation as a driving force that could propel progress in sustainable finance.

  • People moves in brief

    People moves in brief

    Vereker goes to JP Morgan — SG picks new CEEMEA DCM head — Goldman names new cross markets head

  • Moody’s creates global ESG position

    Moody’s creates global ESG position

    Moody’s Investors Services has beefed up its coverage of environmental, social and governance (ESG) factors, naming a veteran analyst as its first global head of ESG.

  • Lombard Odier goes to Church for ESG

    Lombard Odier goes to Church for ESG

    Kristina Church has moved from Barclays to Lombard Odier Investment Managers as a senior investment strategist for sustainable investment, as the firm seeks to grow its offering in this area.

  • Sovereign debt at greater risk of being ‘stranded’

    Sovereign debt at greater risk of being ‘stranded’

    The risk that huge amounts of oil and gas assets will be stranded by moves to tackle the climate emergency may be more pertinent for sovereign credit than for private sector corporate debt, according to new research.

  • The power of making a fuss

    The power of making a fuss

    As head of BlackRock, the largest asset manager, Larry Fink’s pivot to responsible investing in recent years has been influential.

  • Investors fight SEC curbs on ESG motions

    Investors fight SEC curbs on ESG motions

    The latest battle in the campaign to weaken corporate governance standards in the US is being fought over rule changes that would make it harder for investors to propose motions at shareholder meetings. The ‘proxy advisers’ so central to US governance also face new restrictions.

  • Oil and gas ABS market grows despite push for ESG

    Oil and gas ABS market grows despite push for ESG

    Securitizations tied to oil and gas-related cash flows have emerged in recent months, despite growing support from the buy side for socially responsible investments (SRI). Though they run contrary to environmental, social and governance (ESG) principles, issuance of oil and gas royalty ABS may persist as long as the deals offer attractive yields, or until ESG investments pay a premium to brown ABS. Jennifer Kang reports.

  • World Bank’s cat bonds a win for all, says analyst

    World Bank’s cat bonds a win for all, says analyst

    Catastrophe bonds issued by the World Bank have been positive for both investors and the countries receiving protection from the securities, according to one market veteran. The organisation’s activity in insurance-linked securities has been highly innovative but has also received criticism from some quarters.

  • Investors talk big on corporate responsibility, but act feebly

    Investors talk big on corporate responsibility, but act feebly

    The noise about how capitalism is changing to a system in which social purpose is restored to the centre of companies' and investors' aims is now deafening. But look below the surface and the actual governance record of many companies and investors is dreadful. Most shareholders are too supine even to defend their own rights.

  • MSCI launches ESG and factor indices

    MSCI launches ESG and factor indices

    MSCI has launched a range of new indices aimed at corporate bond investors that want to increase their environmental, social and corporate governance and factor exposure.

  • TEG chief: Taxonomy is for disclosure, not prescription

    TEG chief: Taxonomy is for disclosure, not prescription

    Financial specialists will have two years to work out how to implement the European Union’s Taxonomy of Sustainable Economic Activities, which now looks certain to become law in the coming months. But investors, companies and banks are likely to start using the huge document much sooner than that, in a wide variety of ways.

  • Taxonomy deal done as France accepts tweak

    Taxonomy deal done as France accepts tweak

    European member states have voted to approve the law introducing the Taxonomy of Sustainable Economic Activities at the second time of asking, after France and other objectors won concessions in favour of nuclear power that pro-green observers insisted were nothing to worry about.

  • People moves in brief

    People moves in brief

    Barclays’ head of corporate broking leaves — ESG finance academic joins Barings — Morgan Stanley ratings banker heads for exit