New frontiers of impact investing in the coming years
Marina Petroleka, Global Head of Research at Sustainable Fitch, discusses new frontiers of impact investing in the coming years and which areas and themes might be particularly prominent.
Innovation in the sustainable finance market and APAC’s focus on Transition
Marina Petroleka, Global Head of Research at Sustainable Fitch, discusses innovation in the sustainable finance markets and specifically in the fixed income, labelled bonds space with Mathilde Dufour, Head of Research at Mirova, and Guillaume Abel, Co-CEO of Mirova, a B Corp-labeled global asset...
Data as a competitive advantage in the sustainable finance market
Marina Petroleka, Global Head of Research at Sustainable Fitch, discusses the importance of credible data in sustainable finance with Mathilde Dufour, Head of Research at Mirova, and Guillaume Abel, Co-CEO of Mirova, a B Corp-labeled global asset management company and affiliate of Natixis..
The sustainable finance market and the outlook for impact investing in the coming years
Marina Petroleka, Global Head of Research at Sustainable Fitch, discusses the dynamic landscape of sustainable finance and impact investing with Mathilde Dufour, Head of Research at Mirova, and Guillaume Abel, Co-CEO of Mirova, a B Corp-labeled global asset management company and affiliate of...
State of Play 2024: Key ESG Policy and Regulatory Developments in South-East Asia
Melissa Cheok, Associate Director, ESG Research at Sustainable Fitch talks about the state of play the ESG policy and regulatory developments in south-east Asia over the last year.
Consorcio Programa Servicios de Tránsito - ESG Entity Score
Sustainable Fitch has assigned Consorcio Programa Servicios de Tránsito (Consorcio PST) an ESG Entity Score of ‘58’, which reflects the institution’s average overall ESG profile. The ESG Entity Score is designed to indicate the business’s overall impact on environment and society, together with...
Chinese LGFVs Use Labelled Debt for Green and Social Infrastructure Financing
Chinese local government financing vehicles (LGFVs) are increasingly issuing ESG-labelled debt to finance policy-oriented infrastructure projects that aim to deliver positive environmental or social impacts.
Sustainable Fitch Assigns Wessex Water an Inaugural ESG Entity Rating of ‘2’
Sustainable Fitch has assigned Wessex Water Services Limited (Wessex Water) an ESG Entity Rating of ‘2’ and an entity score of 73. Wessex Water’s ESG Entity Rating is positively driven by its core business activity of providing water and wastewater services. This reflects the broadly positive...
Sustainable Fitch Affirms Severn Trent’s ESG Entity and Framework Ratings at ‘2’
Sustainable Fitch has affirmed Severn Trent PLC’s ESG Entity Rating at ‘2’ and entity score at 79. We have also affirmed its ESG Framework Rating at ‘2’ and framework score at 77 for the sustainable bond it issued on 22 February 2022 (ISIN XS2445344570). This has led to an upgrade of its combined...
Adani Green Energy Limited Restricted Group 1 Second-Party Opinion
Sustainable Fitch has provided its Second-Party Opinion on the green bond issued by Adani Green Energy Limited Restricted Group 1 (AGEL RG1). Our opinion is that the alignment to the ICMA Green Bond Principles is ‘Excellent’.
Sustainable Fitch: Second-Party Opinion Provided for TJTB LLC Green Bond Framework
Sustainable Fitch has provided its Second-Party Opinion on the green bond framework of TJTB LLC. We view the green bond framework’s alignment as ‘Excellent’. The framework aligns with the four core principles of the 2021 ICMA Green Bond Principles and the June 2022...
Sustainable Fitch Assigns Compañía Minera Autlán S.A.B. de C.V. an ESG Entity Rating of ‘3’
Compañía Minera Autlán S.A.B. de C.V. (Autlán) is a Mexican mining company listed on the Mexican Stock Exchange. Autlán Holding and SFM Holding, both controlled by José Antonio Rivero Larrea, own 85% of Autlán's shares. Its business activities are the exploration, extraction, production and...
Sustainable Fitch: SPO Provided for Science City (Guangzhou) Investment Group’s Green Financing Framework
Sustainable Fitch has provided its Second-Party Opinion on the green financing framework of Science City (Guangzhou) Investment Group Co., Ltd.. We consider the framework to be in alignment with the four core pillars of the ICMA’s Green Bond Principles. We view the green financing framework’s...
Sustainable Fitch Assigns Tung Ho Steel Enterprise Corporation an ESG Entity Rating of ‘2’
Sustainable Fitch has assigned Tung Ho Steel Enterprise Corporation (Tung Ho) an ESG Entity Rating of ‘2’ and an entity score of 77, reflecting the company’s overall good ESG profile driven by its business activities of steel manufacturing using electric arc furnaces (EAF) and scrap steel.
Shaoxing Shangyu State-owned Capital Investment and Operation - Second-Party Opinion
Sustainable Fitch has provided its Second-Party Opinion on the sustainable finance framework of Shaoxing Shangyu State-owned Capital Investment and Operation Co., Ltd. We have assigned a qualification of ‘Good’ to the framework.
Société des grands projets - Second Party Opinion
Sustainable Fitch has provided its Second-Party Opinion on the green financing framework of Société des grands projets. We view the green financing framework’s alignment as ‘Excellent’. The framework aligns with the four core principles of the 2021 ICMA Green Bond Principles and the June 2022...
Innovation, Co-Benefits, Localisation Key Trends for Sustainable Finance in 2024
Product and framework innovations, social and nature co-benefits, local priorities in taxonomies and global standard disclosures will be key themes for 2024 in the sustainable finance market.
Sustainable Fitch Assigns ASDA an ESG Entity Rating of ‘3’
Sustainable Fitch has assigned Asda Group Limited (Asda) an ESG Entity Rating of ‘3’ and an entity score of 54. Our assessment included an analysis of the ESG profile of Asda as well as of the impact of its food and beverage and retail activities. The evaluation highlighted the main environmental...
Megacable Holdings, S.A.B. de C.V. - Second-Party Opinion
Sustainable Fitch considers transactions under this framework to be aligned with the ICMA SBG, GBP and SBP, as well as the LMA, LSTA and APLMA LPG and/or SLP. Our second-party opinion is that the alignment is 'Excellent'.
Propensio Finance - Second-Party Opinion
Sustainable Fitch has provided its Second-Party Opinion on the sustainable finance framework of Propensio Finance. We consider the framework to be aligned with the ICMA Green Bond Principles 2021, Social Bond Principles 2023, and Sustainability Bond Guidelines 2021, as well as the LMA, LSTA and...
Qatar International Islamic Bank (Q.P.S.C.) - Second-Party Opinion
Sustainable Fitch has provided its Second-Party Opinion on the sustainable finance framework of Qatar International Islamic Bank (Q.P.S.C.) (QIIB).
Auxmoney – Second-Party Opinion
Sustainable Fitch has provided its Second-Party Opinion on the social bond framework of auxmoney. We consider the bonds to be raised under the framework as aligned with the four core pillars of the ICMA Social Bond Principles 2023. Our opinion is that the social bond framework’s alignment is...
Ji’an Chengtou Holding Group Co., Ltd. - Second-Party Opinion
Sustainable Fitch considers transactions under Ji’an Chengtou Holding Group Co., Ltd.’s green finance framework to be aligned with the ICMA Green Bond Principles (GBP) as well as the LSTA Green Loan Principles. The framework includes the four relevant pillars from the ICMA and LSTA principles....
Sustainable Fitch Assigns Solva an ESG Entity Rating of ‘3’
Sustainable Fitch has assigned Microfinance Organisation OnlineKazFinance JSC (Solva) an ESG Entity Rating of ‘3’ and an entity score of 59.
Sustainable Fitch Assigns Uzbekhydroenergo JSC an ESG Entity Rating of ‘2’
Sustainable Fitch has assigned Uzbekhydroenergo JSC an ESG Entity Rating of ‘2’ and an entity score of 65. Uzbekhydroenergo’s ESG Entity Rating is positively driven by its core business activity, due to the contribution to climate change mitigation by displacing fossil fuels with renewable energy...
BCI Securitizadora S.A. - SPO
Sustainable Fitch considers that the structured transaction to be issued under the social bond framework of Caja de Compensación de Asignación Familiar La Araucana (La Araucana) is aligned with the ICMA SBP. In our opinion, the alignment is 'Excellent'.
Sustainable Fitch Affirms Seplat Energy’s ESG Entity Rating of ‘3’
Sustainable Fitch has affirmed Seplat Energy Plc’s ESG Entity Rating of ‘3’ and entity score of ‘42’, up from ‘40’ compared to the previous rating. This rating reflects the company’s moderate ESG performance and the integration of ESG considerations into its business...
Changde Urban Development Group - SPO
Sustainable Fitch has provided its Second-Party Opinion on the sustainability finance framework of Changde Urban Development Group Co., Ltd. . We have assigned a qualification of ‘Excellent’ to the framework.
Cixi State-owned Assets Investment Holding – Second-Party Opinion
Sustainable Fitch has provided its Second-Party Opinion on the sustainable finance framework of Cixi State-owned Assets Investment Holding Co., Ltd. We consider the framework to be aligned with the ICMA Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines...
Fibra Nearshoring Experts and Technology - Second Party Opinion
Sustainable Fitch has provided its Second-Party Opinion on Fibra Nearshoring Experts and Technology’s (Fibra Next) sustainable finance framework. Under this framework, Fibra Next can issue and contract green and social bonds and loans. Our view is that the framework’s alignment to the Green Bond...
Servicio de Agua Potable y Alcantarillado de Lima - Second Party Opinion
Sustainable Fitch has provided a Second-Party Opinion on the green finance framework of Servicio de Agua Potable y Alcantarillado de Lima S.A. (Sedapal). Sedapal’s green finance framework is aligned with the ICMA Green Bond Principles and the Green Loan Principles published by the LMA, LSTA and...
Focus on Biodiversity in ESG Investing is Growing
Biodiversity is rapidly rising up the ESG agenda amid mounting concern about the accelerating degradation of ecosystems and natural capital, but the diverse character of nature and biodiversity-related impacts makes measurement challenging.
Suzhou SND Group Company Limited – Second-Party Opinion
Sustainable Fitch has provided its Second-Party Opinion on the sustainable finance framework of Suzhou SND Group Company Limited. Our Second-Party Opinion of the framework is ‘Good’.
Republic of Argentina - SPO
Argentina is the third-largest economy in Latin America, with a population of 46 million people. The GDP reached USD610 billion and presented a growth of 5.2% in 2022. Argentina's main economic sectors are manufacturing, commerce, transport, telecommunications, real estate and agriculture...
Corporación Nacional de Finanzas Populares y Solidarias – Second-Party Opinion
Sustainable Fitch has provided its Second-Party Opinion on the sustainable framework of Corporación Nacional de Finanzas Populares y Solidarias (Conafips).
Companhia Catarinense de Águas e Saneamento S.A. - Second Party Opinion
Sustainable Fitch has provided its Second-Party Opinion on the sustainable and blue framework of Companhia Catarinense de Aguas e Saneamento S.A. (Casan).
Sustainable Fitch Assigns Minerva an ESG Entity Rating of ‘3’
Sustainable Fitch has assigned Minerva S.A. an ESG Entity Rating of ‘3’ and an entity score of ‘47’, which reflects the company’s average overall ESG profile. Minerva S.A. is a Brazilian company which operates in the slaughtering and meat processing industry. Minerva is South America's leading...
Opportunities and Challenges for Asia’s EV Industry
Nneka Chike-Obi, Senior Director, APAC Head of ESG Ratings and Research at Sustainable Fitch talks about the growing role of EVs in Asia’s automotive sector, and the sustainability considerations for investors when evaluating potential opportunities.
Far East Horizon - Second-Party Opinion
Sustainable Fitch has provided its Second-Party Opinion on the sustainable financing framework of Far East Horizon Limited (Far East Horizon). We have assigned a qualification of ‘Good’ to the framework.
OUE Commercial Real Estate Investment Trust - Second-Party Opinion
Sustainable Fitch has provided its Second-Party Opinion on the green financing framework of OUE Commercial Real Estate Investment Trust (OUE C-REIT). We have assigned a qualification of ‘Good’ to the framework.
Greater London Authority - Second Party Opinion
Sustainable Fitch has provided its Second-Party Opinion on Greater London Authority’s (GLA’s) green financing framework. We have assigned a qualification of ‘Excellent’ to the framework.
Sustainable Fitch Affirms Glas Holdings’ ESG Entity Rating at ‘2’
Sustainable Fitch has affirmed Glas Cymru Holdings Cyfyngedig (Glas Holdings)’s ESG Entity Rating at ‘2’ and ESG entity score of 75. The ESG Entity Rating report can be accessed here. The affirmation reflects the company's overall good ESG profile, from our assessment of the environmental and...
Guangxi Financial Investment Group Co., Ltd. - Second-Party Opinion
Sustainable Fitch considers transactions under Guangxi Financial Investment Group Co., Ltd.’s green finance framework to be aligned with the ICMA Green Bond Principles (GBP) as well as the LSTA Green Loan Principles. The framework includes the four relevant pillars from the ICMA and...
Fujian Zhanglong Group Co., Ltd. - Second-Party Opinion
Sustainable Fitch has provided its Second-Party Opinion on the green and blue finance framework of Fujian Zhanglong Group Co., Ltd. We have assigned a qualification of ‘Good’ to the framework.
Sustainable Fitch Upgrades ESG Entity Rating of Ammper to ‘2’ from ‘3’
Sustainable Fitch has upgraded Ammper Energia, S.A.P.I. de C.V.’s (Ammper) ESG Entity Rating to ‘2’ from ‘3’ and its score to 64 from 61. Following the upgrade, our assessment of Ammper’s ESG profile is ‘Good’. The upgrade reflects Ammper’s ability to continue to deliver a reasonable share of...
Sustainable Fitch Assigns Pan Brothers an ESG Entity Rating of ‘3’
Sustainable Fitch has assigned PT Pan Brothers Tbk (Pan Brothers) an ESG Entity Rating of ‘3’ and an entity score of 50, which reflects the company’s average overall ESG profile.
Sustainable Fitch Assigns Pan Brothers an ESG Entity Rating of ‘3’
Sustainable Fitch has assigned PT Pan Brothers Tbk (Pan Brothers), a textile producer and one of Indonesia's largest listed integrated garment manufacturers, an ESG Entity Rating of ‘3’ and an entity score of 50, which reflects the company’s average overall ESG profile.
Dujiangyan Urban and Rural Construction Group Co., Ltd. - Second Party Opinion
Sustainable Fitch has provided its Second-Party Opinion on the sustainable finance framework of Dujiangyan Urban and Rural Construction Group Co., Ltd. (DURC). The framework governs DURC’s green bond and loan issuances, which finance or refinance projects under three categories of use of proceeds.
Compass Gás e Energia S.A. - Second Party Opinion
Sustainable Fitch has provided its Second-Party Opinion on the first sustainability-linked bond issuance of Compass Gás e Energia S.A. (Compass), for an amount of BRL1.5 billion and with a maturity date of 1 November 2030.
Metronet Infrastructure Issuer LLC, Series 2023-3 – Second Party Opinion
Sustainable Fitch has provided its second-party opinion on Metronet Infrastructure Issuer LLC, Series 2023-3. We consider the three tranches to be in alignment with the ICMA Sustainability Bond Guidelines 2021. Our view is that the transaction’s alignment is 'Good'...
Sustainable Fitch Assigns ESG Entity and Framework Ratings of 2 to Clariane SE and its Green Bond
Sustainable Fitch has assigned Clariane SE an ESG Entity Rating of ‘2’ and an entity score of ‘63’. We also assigned an ESG Framework Rating of ‘2’ and score of ‘81’ to its green bond and a score of ‘80’ to its social bond. The rating reflects Clariane’s overall good ESG performance as a...
Sustainable Fitch Assigns ESG Entity and Framework Ratings of 2 to Clariane SE and its Social Bond
Sustainable Fitch has assigned Clariane SE an ESG Entity Rating of ‘2’ and an entity score of ‘63’. We also assigned an ESG Framework Rating of ‘2’ and score of ‘81’ to its green bond and a score of ‘80’ to its social bond. The rating reflects Clariane’s overall good ESG performance as a...
More Cities Turn to Circular Economy Investments to Manage Urban Waste
Investors are increasingly embedding circular economy themes in investment strategies to mitigate the impact of urban waste and pollution.
Sustainable Fitch Assigns BPER Banca an ESG Entity Rating of ‘3’
Sustainable Fitch has assigned BPER Banca S.p.A. (BPER) an ESG Entity Rating of ‘3’, which reflects the company's average ESG performance and the integration of ESG considerations into its business, strategy and management. The entity score improved to ‘62’ compared to the previous analysis...
Caja de Compensacion de Asignacion Familiar La Araucana - ESG Entity Score
Sustainable Fitch has assigned Caja de Compensacion de Asignacion Familiar La Araucana (La Araucana) an ESG Entity Score of ‘57’, which reflects the institution’s average overall ESG profile. The ESG Entity Score is designed to indicate the business’s overall impact on environment and society...
International-Matex Tank Terminals – Second Party Opinion
Sustainable Fitch has provided its second-party opinion on the sustainability-linked issuance framework of International-Matex Tank Terminals (IMTT). We consider the framework to be in alignment with the Loan Syndications and Trading Association (LSTA) 2023 Sustainability-Linked Loan Principles...
Sustainable Fitch Assigns NaaS Technology an ESG Entity Rating of ‘2’
Sustainable Fitch has assigned NaaS Technology Inc. (NaaS) an ESG Entity Rating of ‘2’ and an entity score of 76. Our assessment included an analysis of the ESG profile of NaaS, as well as of the impact of its electric vehicle (EV) charging and related activities.
The National Bank of Ras Al-Khaimah P.S.C. - Second-Party Opinion
Sustainable Fitch considers the issuance of instruments under The National Bank of Ras Al-Khaimah P.S.C.(RAKBANK)’s social finance framework to be aligned with the ICMA Social Bond Principles (SBP; 2023) and joint publication of LMA, APLMA and LSTA Social Loan Principles (SLP; 2023)...
Sustainable Fitch has assigned Akiş Gayrimenkul Yatirim Ortakligi A.S. an ESG Entity Rating of ‘2’ and an entity score of 72
Our assessment included an analysis of the ESG profile of Akiş, as well as of the impact of its real estate business activities. The evaluation highlighted that the current status of the ESG Rating of Akiş is overall positive...
Sustainable Fitch Assigns Banco Mercantil del Norte an ESG Entity Rating of ‘3’
Banco Mercantil del Norte S.A., Institucion de Banca Multiple (Banorte), a Mexican commercialbank, is a subsidiary of Grupo Financiero Banorte (GFBanorte). GFBanorte is listed on theMexican Stock Exchange, the American OTCQX market, and the Spanish stock market throughLATIBEX. GFBanorte shares...
Banca Popolare dell’Alto Adige S.p.A. - Second-Party Opinion (Green Bond Framework)
Sustainable Fitch has provided its Second-Party Opinion on Banca Popolare dell’Alto Adige S.p.A.'s Green Bond Framework. We consider the framework to be aligned with the ICMA Green Bond Principles. Our view is that the framework's alignment is "Good".
Bonds Use of Proceeds Could Focus More on New Projects, Best Practices
Labelled bonds use of proceeds (UoP) have contributed positively to environmental and social activities, although they could further adhere to issuance guidelines and best practices.
Fideicomiso Fibra UNO – Second-Party Opinion
Sustainable Fitch considers the sustainability debt framework of Fideicomiso Fibra UNO (FUNO) to be aligned with the ICMA Sustainability-Linked Bond and Loan Principles and several international lending associations. It was provided a Second-Party Opinion of "Good".
Enaex S.A. - Second Party Opinion
Sustainable Fitch has provided its Second-Party Opinion on the first sustainability-linked bond issuance of Enaex S.A., for an amount of CLF2.5 million and with a maturity date of 1 March 2035.
Taizhou Urban Construction and Investment Development Group Co., Ltd. –Second-Party Opinion
Fitch expects all the green projects financed under its framework to aim to help TZUI align with the national Building Energy Conservation and Green Building Development plans, as well as the country’s target on building a sponge city.
EP Infrastructure, a.s. – Second-Party Opinion
Framework Highlights: Sustainable Fitch has assigned EP Infrastructure (EPIF) a qualification of ‘Good’ to its first green financing framework. The framework can be used for both bonds as well as loans.
Hangzhou Shangcheng District Urban Construction & Comprehensive Development Co., Limited– Second-Party Opinion
Sustainable Fitch has provided its Second-Party Opinion on the sustainable finance framework of Hangzhou Shangcheng District Urban Construction and Comprehensive Development Co., Ltd. (HSUC).
Empresa de Transmisión Eléctrica S.A. – Second-Party Opinion (SPO)
Sustainable Fitch has provided its second-party opinion on the green framework of Empresa de Transmisión Eléctrica S.A. (ETESA). Under the framework, ETESA can access different green debt instruments. We consider the framework to be aligned with the ICMA Green Bond Principles. Our view is that...
Sustainable Real Estate Can Help Achieve the UN’s SDG 11
Sustainable real estate provides an array of opportunities to align investment strategies with the UN’s Sustainable Development Goal (SDG) on sustainable cities and communities.
Sustainable Fitch Assigns Beijing Energy International Holding an ESG Entity Rating of ‘2’
Sustainable Fitch has assigned Beijing Energy International Holding Co., Ltd. (BEIH) an ESG Entity Rating of ‘2’ and an entity score of 76. This rating reflects the company’s good ESG performance and the integration of ESG considerations into its business, strategy and management.
Sustainable Fitch has assigned Kaufman & Broad an ESG Entity Rating of ‘2’ and an entity score of 80
Our assessment included an analysis of the ESG profile of Kaufman & Broad, as well as of the impact of its real estate development activities. The evaluation highlighted that the current status of the ESG rating of Kaufman & Broad is overall positive. Compliance of its delivered projects in 2022...
Introducing Sustainable Fitch’s ESG Regulations and Reporting Standards Tracker tool
Aurelia Britsch, Senior Director, Global Head of Climate Research talks about Sustainable Fitch’s ESG Regulations and Reporting Standards Tracker, an interactive tool which aims to bring clarity on the fast-evolving ESG regulatory environment.
BP plc - Transition Assessment
Overall, BP showcases a commitment to the energy transition, having set both medium- and long-term targets covering its Scopes 1, 2 and 3 absolute emissions as well as its emissions intensity.
Sustainable Fitch Assigns ESG Ratings to Mytilineos and its Green Bond
Sustainable Fitch has assigned Mytilineos S.A. an ESG Entity Rating of ‘3’ and an entity score of 61. We also evaluated the green bond issued by the company, which we assigned an ESG Framework Rating of ‘2’ and a framework score of 84 to. This led to a combined Instrument rating of ‘2’ and an...
Mexico’s Taxonomy Lays Foundation to Address Key Social Factors
The Mexican Sustainable Taxonomy, launched in March 2023, is the second document of this kind in Latin America after the Colombian Green Taxonomy, which was published in April 2022.
Sustainable Fitch Assigns Inaugural ESG Ratings to Energa S.A.
Sustainable Fitch has assigned Energa S.A. an ESG Entity Rating of ‘3’ and an entity score of 53. This rating reflects the group’s overall average ESG profile primarily driven by the nature of its business activities, which predominantly rely on coal as an energy source, while being partially...
Transition Assessment Methodology: Oil and Gas Sector
This report describes Sustainable Fitch’s Transition Assessment methodology for companies from the oil and gas sector. The assessment builds on the inaugural work of the Sustainable Markets Initiative (SMI) and its Energy Transition Task Force, and benchmarks, differentiates and positions each...
Sustainable Fitch Assigns INEOS Group Holdings an ESG Entity Rating of '3'
Sustainable Fitch has assigned INEOS Group Holdings S.A. (IGH) an ESG Entity Rating of ‘3’ and an entity score of 58. This rating reflects IGH’s satisfying ESG performance and strategy as a chemical company, which includes investment in sustainable materials and advanced technologies, improving....
Yiwu State-Owned Capital Operation Co., Ltd. - Second-Party Opinion
Sustainable Fitch considers transactions under the sustainable finance framework from Yiwu State-Owned Capital Operation Co., Ltd to be aligned with the ICMA Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines.
China Strengthens Coal Financing for Energy Security Despite Rising Transition Risks
Jingwei Jia, Associate Director, ESG Research at Sustainable Fitch talks about the financing outlook of coal assets in China amid rising energy security concerns.
Huzhou City Investment Development Group Co., Ltd. – Second-Party Opinion
Sustainable Fitch considers transactions under the sustainable finance framework of Huzhou City Investment Development Group Co., Ltd. (HCID) to be aligned with the Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines by the ICMA.
Energy Companies Top Environmental Disclosures, but Banks Lead in Scope 3
Investments into assets, products and services that support urban sustainability provide opportunities to target a range of ESG issues, including decarbonisation, health and safety, and access to economic opportunities.
Urban Transport-Themed Investments Can Address Key Environmental, Social Goals
Investments into assets, products and services that support urban sustainability provide opportunities to target a range of ESG issues, including decarbonisation, health and safety, and access to economic opportunities.
Sustainable Fitch Assigns Amprion GmbH an ESG Entity Rating of '2'
Sustainable Fitch has assigned Amprion GmbH an ESG Entity Rating of ‘2’ and an entity score of 70. We also evaluated both tranches of the dual-tranche green bond issued by the company (ISINs DE000A30VPM1 and DE000A30VPL3), which Fitch assigned ESG Framework Ratings of ‘2’ and framework scores of...
Khan Bank LLC - Second-Party Opinion
Sustainable Fitch considers transactions under Khan Bank LLC’s green bond framework to be aligned with the ICMA Green Bond Principles (GBP). The framework includes the relevant pillars from the principles, including use of proceeds (UoP), process for evaluation and selection, management of...
Sustainable Fitch Assigns Inaugural ESG Ratings to Severn Trent and its Sustainable Bond
Sustainable Fitch has assigned Severn Trent PLC an ESG Entity Rating of ‘2’ and an entity score of 77. We also evaluated the sustainable bond it issued on 22 February 2022 (ISIN XS2445344570), which Fitch assigned an ESG Framework Rating of ‘2’ and a framework score of 76 to.
Masmovil Ibercom, S.A. - ESG Entity Rating2
Sustainable Fitch has assigned Masmovil Ibercom, S.A. (MASMOVIL) an ESG Entity Rating of ‘2’ and an entity score of 77. This rating reflects the group’s good ESG performance and the integration of ESG considerations into its business, strategy and management.
Pace of Decommissioning of Oil & Gas Assets to Increase
The scale of decommissioning required in the oil & gas sector is likely to increase as energy systems shift from fossil fuels, posing considerable financial, logistical and environmental challenges.
Transition Financing in Focus for China’s Hard-to-Abate Sectors
Sustainability-linked bonds (SLBs) and transition bonds have emerged to meet Chinese issuers’ growing need for capital in the onshore market, with issuers concentrated in hard-to-abate sectors, Sustainable Fitch says in a new report.
Politics and Economics May Slow but Not Halt ESG Momentum in 2023
Challenging macroeconomic conditions, geopolitical tensions and political polarization are contributing to increased short-term scepticism about the importance of ESG considerations, but the long-term outlook for sustainable finance remains solid.
Sustainable Fitch Provides SPO on the Government of Baja California’s Sustainable Bond Framework
Sustainable Fitch has provided its Second Party Opinion on the sustainable finance framework of the government of Baja California. Under the framework, the state can issue various sustainable instruments, specifically green, social or sustainability bonds...
Sustainable Fitch Provides Second-Party Opinion on Universalidad TIPS Social UVR – U-6 Social Bond Framework
Sustainable Fitch has provided a Second Party Opinion on Universalidad TIPS Social UVR – U-6’s (Universalidad ) social debt framework. Fitch’s opinion is that Universalidad framework, which includes all recommendations made by the ICMA for sustainable bond issuances, is "Good"...
Lula ’s Win in Brazil’s Election Signals Environmental Policy Shift
Luiz Inacio Lula da Silva’s close victory over incumbent Jair Bolsonaro on 30 October will have implications on Brazilian environmental policy.
Deyang Development Holding Group Co., Ltd. – Second-Party Opinion
Deyang Development Holdings Group (DYDH) is the major urban developer and public services provider in Deyang, a prefecture-level city in the southwest of Sichuan province, next to the provincial capital of Chengdu. DYDH plays a key role in financing for the urban development of Deyang.
Corporates Lead Slump in 3Q22 ESG Bond Market Issuance
Rising interest rates and increased capital market volatility contributed to a decline in ESG-labelled bond issuance, particularly among corporates, while sovereigns, supranationals and agencies proved to be innovators in 3Q22.
Proposed Cap on Canadian Oil and Gas Emissions Signals Scrutiny of Decarbonisation
The Canadian government has proposed measures to cap greenhouse emissions from its oil and gas sector, identifying two market-based options.
Sustainable Future Through Green Finance
Sustainable Fitch, joined by the honourable speakers from the Hong Kong Monetary Authority (the HKMA) and Harvest Fund Management, shared the latest market insights on the most pressing issues around green finance.
Gaining Specialist Clarity on ESG In Fixed Income
Increased demand for sustainable investments has led to an explosion of fixed income labelled bonds, particularly GSS issuance. But this market boom brings with it a new set of challenges for investors and portfolio managers.
ADIF – Alta Velocidad – Second-Party Opinion
Framework Highlights: ADIF – Alta Velocidad (ADIF AV) has been issuing green bonds since 2017. This was initially done under the 2017 framework, which was restricted to green bond issuances only, while the 2019 framework update allowed it to issue other instruments, such as green loans.
Introduction to ESG Instrument Ratings from Sustainable Fitch
This high-level overview of ESG Instrument Ratings from Sustainable Fitch explains of what these ratings measure and provides an introduction to the methodology behind them.
Labor, Customer, Consumer and Community-related Issues Among Top Social Credit Risks
In this year’s ESG in Credit series, Fitch discusses how investors are increasingly placing emphasis on social issues, including labor, customer and community-related risks, as well as shifting consumer preferences and social pressures.
Social and Political Issues Increasingly Shape Financial Market Shifts
Social, economic and political factors are increasingly driving developments in the sustainable finance market. The expansion of sustainability-focused regulation has also continued, despite rising political resistance in key markets.
Sustainable Fitch: Science City (Guangzhou) Investment Group Assigned ESG Entity Rating of '3'
Sustainable Fitch has assigned Science City (Guangzhou) Investment Group (SCI Group) an ESG Entity Rating of ‘3’ (on a scale from ‘1’ to ‘5’, where ‘1’ is the strongest), indicating it has an average ESG performance. SCI Group was assessed using Sustainable Fitch’s proprietary ESG Rating...
Chinese Companies Seeking to Shift US Equity Listings to APAC Face Stricter ESG Policies
Chinese companies seeking to shift US equity listings to Hong Kong and elsewhere in APAC may need to improve their ESG disclosure and governance, as they will face stricter regulatory requirements.
Insights from Fitch’s Inaugural Ratings
Sustainable Fitch’s ESG Ratings are in-depth analyses of individual entities and bond frameworks against a common methodology. Comparisons of these across sectors and regions provide valuable, contextual insights to investors.
China’s New Principles for Green Bond Issuance Close Gaps with International Practices
The new China Green Bond Principles published in July 2022 establish unified standards that bring those for domestic green bond issuances closer towards international practices.
Political Risk and Climate Change: Where are the Flashpoints?
Climate change and political risks will mutually reinforce each other as both transition risk, which results from the global shift toward a low-carbon economy, and physical risks rise.
Sustainable Fitch recognized as an external reviewer for the HKMA’s Green and Sustainable Finance Grant Scheme
Working with Fitch, issuers can fully enjoy the financial support in relation to credit ratings under this scheme, including general bond issuance costs and external review costs.
Insights from Fitch’s Inaugural ESG Ratings
Entity and Framework Score Gap Means ‘Brown’ Companies Can Still Meet Green Standards for Bonds. Sustainable Fitch’s ESG Ratings provide a quantitative and qualitative assessment of the impact an issuing entity and associated financial instruments have on the environment and society.
Sustainable Fitch: SPO Provided for Blackbuck Resources Sustainability-Linked Loan
Sustainable Fitch has provided its Second Party Opinion on a sustainability-linked loan and associated upsize transaction to Blackbuck Resources LLC (BBR) by Riverstone Credit Partners. Our Second Party Opinion verifies both the initial loan’s and the upsize’s alignment to the LSTA...
ECB’s ‘Green Tilt’ Could Lead to Long-Term Capital Reallocations
The European Central Bank’s plans to align its monetary policy with its commitments to climate action should have a limited and short-term impact on carbon-intensive companies under its Corporate Bond Purchase Programme (CBPP), but longer-term capital reallocation could be more wide-ranging.
Access and Affordability Most Common Community-Related Credit Issue
Access and affordability is the most relevant community-related environmental, social and governance (ESG) risk among rated issuers, especially for entities involved in the provision of basic services and infrastructure, housing and affordable lending.
Oil And Gas Companies Struggling to Come up With Credible Transition Plans
European Majors Leading But Investor Pressure Evolving Fast, Turning to Mid-caps, Juniors
Sustainable Fitch Expands ESG Service with New Hong Kong Subsidiary
Sustainable Fitch is pleased to announce that it has established Sustainable Fitch Hong Kong Limited as its wholly owned subsidiary.
Social Impacts Rise As Credit Issues With Market Preferences Shifts
Social issues are rising in prominence for investors and other stakeholders and as such the exposure issuers have on shifting consumer preferences or social pressures and resistance can manifest as a credit risk in certain situations.
Sustainable Fitch: Streamline’s Green Loan Aligned with LSTA Green Loan Principles’ Recommendations
Sustainable Fitch has provided its Second Party Opinion on the green loan to Streamline Innovations, Inc. (Streamline) provided by Riverstone Credit Partners. The loan is formed of an existing USD20 million credit facility and a USD25 million upsize. Our Second Party Opinion verifies the
Sustainable Fitch: SPO provided for DEC’s KPI-linked asset-backed transaction
Sustainable Fitch has provided its second party opinion on a KPI-linked asset-backed transaction, and the associated financing framework issued by Diversified Energy Company PLC (DEC).
ESG Analysis, Climate Risk and Credit Ratings - Linking ESG and Credit
Speaking at Reuters’ Responsible Business USA 2022 event, Andrew Steel, Head of Sustainable Fitch, discusses the ‘pure credit’ view of ESG, risks which might develop under climate scenarios and what ESG ratings can tell investors about an entity.
ESG Ratings from Sustainable Fitch
A three-minute introduction to Sustainable Fitch’s ESG Ratings, which provide comprehensive assessments of ESG performance and profiles for entities and debt instruments.
Introduction to ESG Framework Ratings from Sustainable Fitch
This video provides a high-level overview of ESG Framework Ratings from Sustainable Fitch, including explanations of what these ratings measure and the methodology behind them.
China's Policy Priorities to Continue to Drive Sustainable Debt Market
China's sustainable-debt market is set to grow, driven by policy priorities, as Fitch expects the government to reveal more detailed carbon-neutrality roadmaps later this year.
Standardised ESG Disclosures Take Shape, Energy Security Concerns in Focus over 1Q22
There have been notable and much-anticipated sustainability disclosure proposals in 1Q22, and the war in Ukraine has profoundly impacted energy policy priorities, especially in Europe.
Sustainable Fitch: Standardised Disclosures Take Shape, Energy Security Concerns in Focus over 1Q22
A much clearer picture will emerge this year on what climate and sustainability disclosure standards will entail and their timelines for implementation following conclusion of public consultations and legislative processes, Sustainable Fitch says in a new report.
Sustainable Fitch: China's Policy Priorities to Continue to Drive Sustainable Debt Market
China's sustainable-debt market will continue to be driven by policy developments, after the issuance rose to USD65.5 billion in 2021, Sustainable Fitch says. We expect various ministries to issue more specific carbon-neutrality roadmaps in 2022, which will support
Low-Carbon Supply Chains Face Growing Pressure
Trade tensions due to the Russia-Ukraine conflict and tightened Covid-19 restrictions in China will exacerbate supply disruptions of key metals for low-carbon technologies.
Sustainable Fitch: SEC Sets US on Path Towards Mandatory Climate Disclosures
The US Securities and Exchange Commission’s (SEC) much-anticipated proposals for climate-related disclosures represent a significant bolstering of reporting requirements in the US, Sustainable Fitch says in a new report. This is both in relative terms (the SEC is starting from a largely voluntary
Supranationals, Subnationals and Agencies (SSA-50) Deepen Issuance of Labelled Bonds
Debt issuance from the Fitch SSA-50 group of supranational, subnational, and agency (SSA) borrowers in 2020 and 2021 was USD760 billion in 2020 and USD800 billion in 2021, more than 50% higher than the annual pre-pandemic average of USD500 billion in 2012-2019.
EU Energy Package Reflects Shifting Policy Priorities, May Involve Significant Costs
The EU Commission’s REPowerEU policy package aims to diversify energy supplies across liquified natural gas (LNG) and renewable energy, Fitch Ratings says. Wider inflationary pressures could limit the viability of some goals.
Fitch Named ESG Rating Agency of the Year by the Asset
Fitch Ratings won seven Rating Agency of the Year awards from The Asset, a leading Asian financial market publication, including ESG Rating Agency of the Year for the Asia-Pacific and North America regions. This is the third time Fitch has won the ESG award for APAC.
Introduction to ESG Entity Ratings from Sustainable Fitch
This high-level introduction to ESG Entity Ratings from Sustainable Fitch provides an overview of what these ratings measure and what is included in each report.
Sustainable Fitch - Litigation is a Growing ESG Related Credit Risk
ESG-related litigation should increase in line with the introduction of regulatory disclosure requirements. This could modify an issuer’s operating environment and credit profile.
Evolving Regulations Accelerate Materiality of Customer-Related Issues
Investors are increasingly placing emphasis on customer-related issues when considering investments in the corporate, financial institution and structured finance sectors, driven by regulatory and ESG disclosure frameworks.
Sustainable Fitch - Bank Climate Stress Tests Turn Focus to Risk Management
Wider use of climate change stress testing by regulators of banks and insurers is unlikely to lead to immediate changes in capital charges but could prompt other regulatory action in the near term.
Sustainable Fitch: Litigation Is a Growing ESG-Related Risk
ESG-related litigation should increase in line with the introduction of regulatory disclosure requirements, Sustainable Fitch says in a new report.
Sustainable Fitch: Bank Climate Stress Tests Turn Focus to Risk Management
Wider use of climate change stress testing by regulators of banks and insurers is unlikely to lead to immediate changes in capital charges but could prompt other regulatory action in the near term, Sustainable Fitch says in a new report.
Risks, Opportunities, and ESG Implications of Artificial Intelligence in Finance
Artificial Intelligence (AI) is an evolving family of technologies that are helping the financial industry to streamline and optimize processes, ranging from credit decisions to quantitative trading and financial risk management.
Sustainable Fitch: Eco Material's Green Bond Aligned with ICMA Green Bond Principles
Sustainable Fitch, using its proprietary ESG Ratings methodology, has provided its second party opinion on the green bond and associated framework issued by Eco Material Technologies Inc.
Social Issues to Rise in Prominence for ESG Strategies in 2022
Investors, regulators, and stakeholders are paying increasing attention to social issues, and this ESG theme will rise in prominence over 2022.
Sustainable Fitch: Social Issues to Rise in Prominence for ESG Strategies in 2022
Investors, regulators and stakeholders in capital markets are paying increasing attention to social issues and this ESG theme will rise in prominence over 2022, Sustainable Fitch says in a new report.
Sovereigns Most Vulnerable From Physical Risks to Face Ratings Pressures
Fitch Ratings expects climate-change physical risks to lead to some rating downgrades of the most vulnerable sovereigns as the effects become clearer, closer and more material.
Materiality of Labour Issues in Credit Driving Investor, Regulatory Calls for Disclosures
Investor-led support for more clarity on labour-related ESG risks is driving an increase in regulatory and voluntary disclosure frameworks.
Climate Change Risks for Structured Finance: a Primer
Fitch Ratings expects climate change risks to become increasingly prominent for structured finance and that they could start to have discernible credit implications for deals issued in the next 10 years.
Water, Air Quality, Energy, Biodiversity & Extreme Climate Issues to Affect Credits
Fitch's ESG Encyclopedia discusses risk exposure to extreme weather events, water, energy and fuel, air quality, biodiversity and water issues.
Proposed Rules May Strengthen China’s ESG Disclosure
Proposed ESG disclosure requirements for companies could improve investor access to ESG data and risk assessment in China, but the impact would initially be limited due to weak penalties for breaches.
China’s New Climate Disclosures Signal Higher Regulatory Scrutiny
Mandatory environmental information disclosure requirements for companies proposed by China’s Ministry of Ecology and Environment could improve investor access to data and risk assessment around environmental
Evolving Data Privacy Regulations Could Drive Long-Term Shift in Business Operations
Proliferating data privacy regulations will increase compliance costs for companies, as well as litigation and fines when breaches occur.
Sustainable Fitch: COP26 Crucial for Global Climate Policy Momentum
Tangible successes across different areas of the four main goals set for the UN's COP26 will be crucial in maintaining the policy momentum towards coordinated action on climate change mitigation and minimising the risk of a
Sustainable Fitch: Focus Turns to Voluntary Carbon Market Integrity, Costs
Rising demand for carbon offsets as part of net zero commitments is leading to heightened scrutiny of the integrity of underlying emissions reduction projects, Sustainable Fitch says in a new report
Increasing Investor Focus on Biodiversity Risks
Investors are increasing their focus on biodiversity in anticipation of tightening regulation, and new financial instruments could incentivise state-owned and private companies to stem biodiversity loss.
Moral Money Summit: Building frameworks for a moral and sustainable future
Andrew Steel, Global Head of Sustainable Fitch, participates in a panel discussion on how to build financial, market, and regulatory frameworks for a moral and sustainable future.
Global Data Privacy Regulations May Increase Costs for Data-Reliant Businesses
Proliferating data privacy regulations will increase compliance costs for companies, as well as litigation and fines when breaches occur, Sustainable Fitch says in a new report. The rising number of data breach
Fitch Group Announces Creation of Sustainable Fitch and Launches ESG Ratings Products
Sustainable Fitch-London/New York-15 September 2021: Fitch Group today announced the launch of Sustainable Fitch, which will offer a comprehensive range of ESG Ratings products at both an entity and instrument level for all asset classes globally
EU Green Bond Standard Faces Obstacles to Become the Global ‘Gold Standard’
The EC’s proposed regulation on a voluntary European green bond standard (EUGBS) published in July 2021 is unlikely to become a global ‘gold standard’ and trigger a meaningful transformation of the global green bond market.
The Importance of Sustainable Finance Debt for Insurers Is Growing
Stakeholder pressure on insurance companies to align their business with environmental, social, and governance (ESG) principles has led to the increasing issuance of bonds that incorporate sustainable finance (SF) standards, such as green bonds, since 2019.
China's Circular-Economy Push Addresses Waste Reduction and Overcapacity
China’s inaugural Circular Economy Roadmap could drive long-term corporate shifts to reduce industrial waste, improve resource efficiency and tackle overcapacity in key industrial sectors, Fitch Ratings says
EU’s Fit-for-55 to Spur Energy Transition in Multiple Sectors
The EU has released a wide-ranging set of inter-related regulatory proposals to reduce greenhouse gas (GHG) emissions by 55% (compared to 1990 levels) by 2030.
Latin American Sustainable Bond Market (A Growing Presence)
Sustainable bonds became a growing presence across Latin American cross-border issuers in recent years, and Fitch Ratings expects continued growth as market participants increase their awareness of and interest in Environmental, Social and Governance (ESG) factors.
European Traditional Investment Managers Increase Focus on ESG
ESG Adoption Gains MomentumEuropean traditional investment managers (IMs) are increasingly focusing their fund offerings on ESG (environmental, social and governance) factors, particularly environmental sustainability.
Climate Stress Tests to Be Mainstream for Banks, Insurers
Banks and insurers around the world are likely to face climate-related stress tests in the next two to three years as supervisors become increasingly aware of the urgency in gauging the risks from climate change, Fitch Ratings says in a new report
What Investors Want to Know: Key Questions from Fitch's ESG Outlook Conference
Fitch Ratings hosted its inaugural ESG outlook conference on 1-3 December 2020, a live virtual event featuring 28 Fitch analysts alongside 24 guest panellists across 19 sessions.
ESG in Credit - Water Issues
The ESG in Credit series of reports provides insights on the credit relevance and materiality of sector-specific environmental, social and governance (ESG) credit issues and offer guidance on investor approaches to evaluating ESG risk factors in investment analysis and decisions.
Industry Faces Climate Transition Challenge: Disruption from Rising Costs, Regulation to Accelerate in 2020s
Mitigating emissions from the manufacture of cement, steel, ammonia fertilizers and ethylene is challenging and costly. Strong political pressure to do so could have uneven impacts on producers and assets.