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 ESG factors into credit analysis. The articles below summarise some of the key points arising from an 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

 

  • WORKSHOP WITH INSURANCE SECTOR ISSUERS
     This workshop attracted 25 market participants, including four representatives from two insurance companies, three representatives from credit rating agencies and 12 investors from 11 firms. View article
  • WORKSHOP WITH NORTH AMERICAN BANKS
     This workshop attracted 30 attendees, including six representatives from four Canadian and US banks, four representatives from three CRAs and 14 investors from 13 firms. View article
  • WORKSHOP WITH UK BANKS
     This workshop was attended by over 30 participants, including seven representatives from four UK banks, five representatives from as many CRAs and 15 investors from 14 firms. View article
  • WORKSHOP WITH EU BANKS
     This workshop was hosted in collaboration with the SFAF, gathering 56 market participants, including 14 representatives from eight EU banks, nine representatives from seven CRAs, and 27 investors from 18 firms. View article
  • WORKSHOP WITH UTILITIES SECTOR ISSUERS
     This workshop was hosted with eight members of the Corporate Forum on Sustainable Finance. The event attracted 44 market participants, including representatives from eight corporates from the utilities sector, seven credit rating agencies and ten investors from various organisations, as well as a representative of the World Business Council for Sustainable Development. View article
  • WORKSHOP WITH CHEMICAL ISSUERS
     This workshop was hosted in collaboration with the World Business Council for Sustainable Development (WBCSD). The event attracted nearly 40 market participants, including representatives from seven corporates from the chemical sector, four CRAs and 15 investors from as many organisations. View article
  • WORKSHOP WITH SUB-IG BORROWERS (Part 3)
     This workshop was the third sub-IG borrower event hosted in collaboration with the ELFA. It was attended by over 50 market participants, including representatives from seven corporates from the transport sector and three sub-sectors of the healthcare industry (hospitals & care homes, medical devices and pharmaceuticals), five CRAs and 30 investors from 19 organisations. View article
  • WORKSHOP WITH ISSUERS FROM THE FOOD VALUE CHAIN
     This workshop featured over 60 participants, including representatives from 11 companies (producers, traders, manufacturers and retailers), as well as 22 credit analysts from 20 organisations and five representatives from three CRAs. View article
  • WORKSHOP WITH MINING ISSUERS
     This workshop featured close to 40 participants, including representatives from four companies from the mining industry. 13 credit analysts from asset managers and investment banks were also in attendance, as well as representatives from three CRAs, the Centre for Climate Finance and Investment at the Imperial College Business School, and the Global Compact Network USA. View article
  • WORKSHOP WITH SUB-IG BORROWERS (Part 2a and 2b)
     This workshop was hosted again in collaboration with ELFA. It was attended by over 100 market participants, including representatives from 20 corporates from five different sectors (chemical, industrial, retail, communication infrastructure and technology/software) six CRAs and 51 investors from 32 organisations. The highlights are split in two articles which cover different part of the discussion. View articles
  • WORKSHOP WITH SWISS ISSUERS
     This workshop featured 4 companies from the chemical, financial and food sectors. It was attended by 17 investors from 13 organisations, as well as representatives from seven CRAs, the Association of Corporate Treasurers, the Centre for Climate Finance and Investment at the Imperial College Business School, and the World Business Council for Sustainable Development. View article
  • WORKSHOP WITH FRENCH SUB-IG ISSUERS
     This workshop was hosted in collaboration with the Societé Française des Analystes Financiers (SFAF). Five companies from the shipping, retail, rental equipment, debt repurchasing and facility management sectors participated, together with representatives from six credit rating agencies, 34 investors from nearly 20 organisations, and members from the SFAF ESG and credit commissions. View article

  • WORKSHOP WITH COMPANY ADVISERS
    This workshop, organised in collaboration with the European Leveraged Finance Association (ELFA), convened key market participants – including fixed income investors, borrowers, bankers, lawyers, credit rating agencies and private equity sponsors, to discuss the rationale and the importance of company disclosure of ESG information and data. View article

  • WORKSHOP WITH SUB-IG BORROWERS (Part 1)
    This workshop was hosted in collaboration with 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. Representatives from three credit rating agencies participated, alongside 36 investors from 31 organisations. View article

  • PARIS WORKSHOP WITH IG ISSUERS  
    This workshop was hosted in collaboration with SFAF. Four companies from the food, energy, pharmaceutical and real estate sectors participated, together with representatives from four credit rating agencies and 28 investors from 21 organisations. View article

 

Find the ELFA-PRI sector-specific ESG Fact Sheets here.

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References

1 All the findings of the forum discussions and recommendations for future actions are documented in the series ‘Shifting perceptions: ESG, credit risk and ratings’ available on www.unpri.org/credit-ratings.

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