The PRI’s ESG in credit risk and ratings initiative is for the first time bringing voices from the corporate side into the conversation on how to better incorporate EGS factors into credit analysis. The articles below summarise some of the key points arising from a new ongoing series of workshops that will see credit analysts from the buy and sell side as well as credit rating agencies (CRAs) engage with representatives from debt issuers’ corporate finance departments. It follows a series of 21 forums that the PRI organised from September 2017 to September 2019 to nurture an investor-CRA dialogue to promote a transparent and systematic consideration of ESG factors in credit risk assessment.1

Following the first workshop, with four investment grade (IG) companies, the second credit analyst-issuer event focussed on sub-IG (high-yield) borrowers. In engaging with these companies, we explored the extent to which their credit rating impacts how ESG factors are considered in their business models as well as in investor assessments, alongside specific challenges facing financial market practitioners in this segment of the market.

  • WORKSHOP WITH SUB-IG BORROWERS
    The workshop with sub-IG borrowers was hosted in collaboration with the European Leveraged Finance Association (ELFA), reflecting synergies between the PRI’s ESG in credit risk and ratings initiative and the ELFA’s ESG disclosure initiative. It was attended by 13 sub-IG companies from the debt repurchasing, healthcare, telecoms and paper and packaging sectors. Credit rating agency representatives from Fitch Ratings, Moody’s Investors Service and S&P Global Ratings also participated, as well as 36 investors from 31 organisationsmp;P Global Ratings also participated as well as 36 investors from 31 organisations. View article

  • PARIS WORKSHOP WITH IG ISSUERS  
    The workshop with IG borrowers was hosted in collaboration with the Societé Française des Analystes Financiers (SFAF). Four companies from the food, energy, pharmaceutical and real estate sectors participated, together with representatives from credit rating agencies (Fitch Ratings, Moody’s Investors Service, Scope Ratings and S&P Global Ratings) and 28 investors from 21 organisations. View article


UPCOMING CREDIT-ANALYST ISSUER WORKSHOPS
The workshop series is for sector specialists only. If you are a corporate borrower, or a credit analyst specialising in one of the sectors that will be covered during the upcoming events listed below, and are interested in participating contact FI@unpri.org. Please note the workshops will be online. Places are limited to allow for a focussed discussion.

  • November 25, 2020 - Workshop with French sub-IG borrowers (in collaboration with SFAF), with companies from the debt collectors, cable manufacturing, equipment rental services, facility management and retail.
  • December 10, 2020 - Workshop with Swiss borrowers, with companies from the chemicals, electric utilities, financials and food sectors.