What key trends do infrastructure investors face in 2019? For one, nationalist and populist movements are on the rise – creating an environment of heightened political risk, which investors may find hard to navigate. The result could weigh heavily on regulatory stability, as well as country risk or sovereign credit quality.
In tandem, environmental, social, and governance (ESG) matters are beginning to rise in prominence. Increasingly, investors are stepping up their focus in their investment mandates on companies that are seen as acting more sustainably.
Against this backdrop, the latest edition of Outlook keeps investors abreast of the most-read research from the past quarter – offering insights into how the Infrastructure segment is changing and, importantly, how it may yet evolve.
Outlook is available in PDF here
Moorgate compiles, edits and designs Infrastructure Finance Outlook.
Environmental, social and governance (ESG) risks and opportunities are of growing interest to all market participants. With the potential to affect an entity’s capacity and willingness to meet its financial commitments in various ways, it is important to understand how S&P Global Ratings incorporates ESG factors into credit ratings. Michael Wilkins, Head of Sustainable Finance at S&P Global Ratings, explains.
The full piece was published in print.
Quoted in The Banker, Orith Azoulay, Global Head of Natixis’s Green and Sustainability Hub, explained that the growing trend for investors is “a top-down, cross-asset class commitment to ESG and/or green”.
However, Azoulay also noted that “the market has not defined per se what a green structured product is and how to assess its greenness”, and while common guidelines have been developed for other asset classes, a framework is still lacking for structured products.
To read the article in full, please click here (please note the paywall).
Investors are increasingly interested in the ESG risk attributes of their portfolios. Writing for GreenBiz, Jessica Williams and Noemie de la Gorce, Analysts at S&P Global Ratings, consider the environmental and social risks that have had a material impact on credit ratings since 2015.
To read the full article please click here.
In an article on green finance, Michael Wilkins, Head of Sustainable Finance, says that the growth of the green finance market was spurred by the Paris Agreement and “the general realisation within the financial sector that climate change could pose a real systemic risk.”
To read the full article please click here.
Jessica Williams and Noemie de la Gorce, Analysts at S&P Global Ratings, discuss the findings of two separate two-year reviews of S&P Global Ratings’ ratings updates, which show where environmental or social risks or opportunities were material to the rating.
To read the full article, please click here.
Natixis has partnered with Solactive AG to launch a new Climate and Energy Transition Index, which will be used as a basis for their structured products.
The index, based on methodology designed by Natixis and Sustainalytics, will track the performance of companies that show the best commitment to energy transition in their sectors while exhibiting low volatility and high dividend yield characteristics.
The news was covered by Investment Europe, Expert Investor, Wealth Advisor, SRP (login), ETF Strategy, Mondovisione, LeapRate, ETF stream, ETF express
With ongoing advances in sustainability, the risk of being unable to monetise carbon assets grows by the day. A new book from Routledge, Stranded Assets and the Environment: Risk, Resilience and Opportunity, explores the ramifications of asset stranding across various sectors of the global economy.
Mike Wilkins, Head of Sustainable Finance at S&P Global Ratings, supplies chapter 8, drawing on research and real-world corporate case studies to focus on the credit implications of stranded assets.
On 17 April 2018, S&P Global Ratings marked the launch of its Sustainable Finance team. At a reception in central London, the team, which includes members from North America, hosted specialist and tier one agencies.
The Sustainable Finance Team is a cross-practice, dedicated team of S&P Global Ratings analysts who cover environmental, social and governance (ESG) analytics and research, insight into sustainable infrastructure trends worldwide, and the S&P Global Ratings Green Evaluation – an asset-level environmental credential, launched in early 2017.
Moorgate worked with the communications team at S&P Global in arranging the event, including invitation attendance, content for distribution, and all venue logistics.
To see the new S&P Global Ratings Sustainable Finance website, please click here.
In the wake of severe weather events – for example, 2017’s particularly destructive Atlantic hurricane season – climate-related risk is rising on the global agenda. In light of this, lenders and institutional investors are increasingly interested in how S&P Global Ratings incorporates environmental, social and governance (ESG) risks and opportunities into its insurer credit ratings analysis.
In a Q&A for YouTalk Insurance, Mark Button, Senior Director, S&P Global Ratings, describes the nature of ESG risks and how they factor into S&P’s insurer credit methodology.
To read the full piece, please click here.