ESG Scores for Leveraged Finance Quarterly Briefing: a detailed, industry-specific comparison

From the Desk of Gianluca Spinetti: Key updates from Sustainable Fitch's Global Head of Analytics and Product Development

• Sustainability-linked bonds have always been debated and controversial when it comes to ambitiousness and relevance of targets. ENEL S.p.A. has pioneered this type of instrument and openly showed its commitment to the market when the bonds’ step-up got triggered just few weeks ago. See Sustainable Fitch's thoughts on it.
• As the market focus on sustainability continues extending from public companies to private credit, our latest quarterly review of ESG Scores on CLO entities has been published; it includes a sector-by-sector recap and the top 15 CLOs in EMEA and NA, all backed by our entity-by-entity analyses and proprietary scores. Read the report.
• The number of countries that have published sustainable taxonomies in the past few months has significantly increased. While the majority of them are focused on green topics, we are seeing increased interest in transition and social themes, from Latin American and Asian countries, in addition to the "established" EU taxonomy. Therefore, we have started to provide assessments of alignment to other taxonomies (see this SPO report with Mexican taxonomy alignment, Spanish) in addition to the EU taxonomy.

Dive deeper into this topic and more in the curated insights and webinars we've handpicked just for you. Find out more below.

Gianluca Spinetti

Global Head of Analytics and Product Development Managing Director

Sustainable Fitch

Featured Report

Sustainable Fitch ESG Scores for Leveraged Finance Quarterly Briefing - First Quarter 2024

Sustainable Fitch assessed 23 market transactions in the broadly syndicated loan markets across North America (22%) and Europe (78%) in 1Q24. Most of these transactions are concentrated in the industries of business services, health care, and transportation distribution. 

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Sustainable Insights

SLB Market Entering Next Phase Following Enel’s Missed Targets

Enel S.p.A.’s failure to meet one of its sustainability performance targets (SPTs) – triggering a 25bp step-up in the affected bonds – is a watershed moment for the sustainability-linked debt market and could help to restore confidence in the sustainability-linked bond (SLB) format, Sustainable Fitch says in a new report.

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Development Bank Reforms Signal New Climate Finance Push

Scaling up climate finance for emerging markets (EMs) was a major theme at the recent Spring Meetings of the IMF and World Bank. The meetings discussed reforms to multilateral development banks (MDB) to encourage them to increase concessional lending for climate-related projects and offer solutions to de-risk investment in EMs, including through blended finance.

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Indonesia's Climate Transition Goals Could Waver in New Economic Agenda

President-elect Prabowo Subianto and his running mate Gibran Rakabuming Raka are set to become Indonesia’s next leaders after the elections committee declared them the winners of the 2024 presidential elections. The pair have announced they want to achieve economic growth of up to 8% while also aiming for energy and food self-sufficiency in Indonesia. However, their pro-growth agenda, which prioritises ambitious GDP targets and infrastructure projects, may result in the country becoming even more reliant on coal to fuel development.

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Reports

• Sustainable Fitch Assigns OSB GROUP an Inaugural ESG Entity Rating of ‘3’
• Sustainable Fitch: Second-Party Opinion Provided for EPH’s Green Finance Framework
• Sustainable Fitch Publishes Telefonica’s ESG Entity Rating of ‘2’

Featured Events

• Finance durable et marchés de la dette : Quelles sont les dernières tendances pour les investisseurs?
• On-Demand: Sustainability Insights: Focus on Housing Providers in EMEA
• On-Demand: Unveiling ESG Ratings for Banks in the Middle East & Turkiye

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