ESGRisk Management
July 22, 2021

Hot Topic: How and When Corporates Respond to Climate Change Risks

At a recent NeuGroup virtual interactive session, Willis Towers Watson’s Climate and Resilience Hub experts, led by Irem Yerdelen, detailed the long-term risks of ignoring the causes of climate change and other environmental threats, and members discussed what steps, if any, treasurers can take to incorporate this risk into their ESG and risk management strategies. "There is an extraordinary depth and breadth to this issue,” Ms. Yerdelen said. “It's one of the few issues that permeates every element of every…
ESGRisk Management
July 22, 2021

Reading the Tale of the Tape on Energy Transition

Economist Ed Hirs shared his perspective on the energy transition with NeuGroup Oil & Gas treasurers.By Joseph Neu“There is nothing you can do to fight the tape,” University of Houston Energy Fellow and Zero Carbon Cycle LLC co-founder Ed Hirs said recently. Energy transition is here, with more than 75% of the public now wanting to reduce carbon emissions, he noted. But the tape, or market trend, also points to the need for energy to support economic and population growth—in developing markets…
Capital MarketsESG
July 15, 2021

Taking Smaller ESG Steps, Bypassing the Green Bond Road (for Now)

Options in the ESG financing field range from CP to credit facilities, money-market funds and time deposits. Not quite ready to issue ESG bonds? Nearly half the assistant treasurers (ATs) in the projects and priorities session of a recent meeting of NeuGroup for Large-Cap Assistant Treasurers cited ESG as a top priority. However, most said their companies were not quite ready to issue an ESG-based bond and expressed interest in various ESG alternatives. Issuing an ESG bond requires significant legwork and…
ESGRisk Management
June 10, 2021

Want to Add Value? Get Creative

An internal auditor explains how he’s been able to not only provide assurance but also add value in other ways.Even before the onset of the pandemic, the scope of just about all corporate functions was widening. New regulations, new technology and new cultural trends (read: reputational potholes) all tended to have people doing more with less. That’s why creatively sharing the load can work best and where one function, internal audit, has found it can add extra value. This was…
Capital AllocationESG
June 10, 2021

Balancing Act for Energy Firms: ESG vs. Capital Returns, Discipline

More takeaways from a NeuGroup pilot meeting of oil and gas treasurers weighing the role of finance in energy transition strategies, conducted in partnership with Societe Generale.By Joseph NeuOur discussion with oil and gas treasurers validated that there is a strong belief that investors (and especially on the bond side) want capital discipline and not just a commitment to ESG initiatives. ESG mandates are sold as an indicator of strong returns, especially in the long run; so if companies underperform…
ESGRegional
June 3, 2021

Oil and Gas Treasurers Weigh Finance Roles in Transition Strategies

How much time do companies have? Takeaways from the first meeting of a NeuGroup focused on oil and gas treasury support of energy transition conducted in partnership with Societe Generale.By Joseph NeuLast week shook the oil and gas sector. Exxon Mobil saw two board seats go to directors backed by the energy transition activist hedge fund Engine No. 1 (yesterday, the company said a third seat will likely go to the fund), which convinced big asset managers to back its…
D&IESG
May 20, 2021

On the Horizon: ‘Much Better Data and Analytics To Do ESG Scoring’

BlackRock CEO Larry Fink shared insights on ESG, D&I and American capitalism with NeuGroup members and guests. BlackRock CEO Larry Fink recently addressed treasurers attending a special session moderated by NeuGroup CEO Joseph Neu that touched on topics including ESG, diversity and inclusion, corporate purpose and American-style capitalism. Among many highlights, Mr. Fink said he is actively urging world leaders to agree on a common set of metrics to judge progress on climate change. “We need every country to come…
ESGRisk Management
April 29, 2021

Shifting Winds of ESG Policies and Regs Have Risk Managers on Alert

The prospect of increased regulation and disclosure around corporate sustainability has risk managers preparing.The likelihood of increased regulation and mandatory disclosure of ESG-related activities and risks under the Biden administration and across the globe has enterprise risk managers trying to get their ESG ducks in a row. “From a risk management perspective, we audit all facts and figures in ESG reports we’re using internally,” said one member at a recent meeting of NeuGroup for Enterprise Risk Management. “The expectation is…
Capital MarketsESG
April 22, 2021

A Virtuous Cycle Including Treasury Bolsters Sustainability Efforts

Building a framework sets the stage for green bonds—an umbrella to systematize initiatives. Increased scrutiny of corporate sustainability efforts by investors and other stakeholders has made it essential for companies to place ESG initiatives into a clear framework.   Building the framework to coordinate decisions and address investor inquiries more effectively requires communication among key parts of the company, with treasury playing a critical role.These were among the takeaways from a recent meeting of NeuGroup for Capital Markets sponsored by Wells Fargo…
BankingESG
March 9, 2021

Green Discount: Treasury Wins With a Sustainability-Linked Revolver

After a corporate successfully launched a sustainability-linked revolver, the treasurer’s phone started ringing.When it came time for one NeuGroup member to renew an existing five-year revolver, he saw an opportunity to improve pricing and generate positive PR by leveraging the ESG goals that the company had recently put in place. The member’s company worked with BNP Paribas and Unicredit to structure a multibillion-dollar sustainability-linked revolver, the first one in its industry sector.“I’ve received a lot of calls from other treasurers…