The PRI discusses with representatives from CRAs (Moody’s Investors Service and S&P Global Ratings), investors (Barings and PIMCO) and a bond issuer (NRG) the challenges of ESG in credit risk during a panel session at the San Francisco conference on Responsible Investment in Fixed Income this January.
Roundtable discussions began considering the various steps that need to be taken to help build a more structured and systematic framework for ESG consideration in credit risk analysis. Three potentially significant steps have been identified so far.
Case study by AllianceBernstein
Case study by RLAM
Issuer engagement on ESG factors is becoming increasingly commonplace. Investors are starting to formalise their engagement as an integral part of their approaches to responsible investment.