Capital MarketsESG
November 3, 2021

Drilling for Clarity on How ESG Factors Influence Credit Ratings

Oil and gas sector analysts are scrambling to explain to energy companies the link between ESG scores and credit risk.The momentum behind ESG mandates and the conviction that companies committed to sustainability represent better investment risks have put pressure on ratings agencies to reconcile traditional credit ratings with ESG scores. This reconciliation has become more challenging as the agencies themselves begin to offer ESG scores or ratings as well as sustainability assessments. One approach is to explain in more detail…
BankingESG
October 18, 2021

Treasury’s Need for an ESG Filter to Keep the Focus Where It Belongs

Tech treasurers in Asia discuss ESG priorities with Goldman Sachs Asset Management. Members of NeuGroup for Asia Tech Treasurers heard insights on treasury’s growing role in the accelerating efforts of corporates to promote sustainability through environmental, social and governance (ESG) initiatives at a recent meeting sponsored by Goldman Sachs Asset Management (GSAM). Among the key takeaways: Figuring out what matters and what doesn’t to investors and other stakeholders diving into the ESG pool is critical for treasurers facing pressure to innovate and manage…
ESGRisk Management
September 30, 2021

Environmental Scrutiny: Internal Audit Takes Stock of ESG Goals

As ESG initiatives grow, audit teams work to ensure companies meet their publicized targets. At recent NeuGroup meetings, internal audit heads discussed taking the first steps at integrating ESG into their audit plans, conducting tests to ensure alignment with public statements on environmental goals. Though only a handful of members currently have ESG in their audit plan, others recognized the need and are kickstarting the process to get out ahead.ESG goals “can become a sales pitch,” one member said, adding he…
ESGInvestment Management
August 19, 2021

Leaning into ESG: How a Portfolio ‘Tilt’ Can Pay Off

State Street experts recommend how to optimize an investment portfolio for both ESG and credit quality. It’s a complicated world of ESG scores and standards, especially when managing an investment portfolio. At top of mind for NeuGroup members putting corporate cash to work: should they prioritize ESG performance or maximize returns? Hint: it’s not too much to ask for both. At a recent meeting of NeuGroup for Cash Investment 2, Will Goldthwait and Karyn Corridan, ESG investment experts from State Street Global…
Capital MarketsD&IESG
August 5, 2021

A Pioneer Plugs Into Energy Sector Sustainability-Linked Financing

Enbridge, the pipeline operator, is the first midstream firm in North America to do sustainability-linked financing. Presenting to members of NeuGroup for Oil & Gas Treasury (sponsored by Societe Generale), Sheldon Bueckert, director of treasury at Enbridge, shared his experience helping lead the company’s sustainability-linked bond (SLB) and loan financings, a first for a midstream firm in North America. The session focused on a SLB that Enbridge issued in late June.Key SLB details. On June 23, 2021, Enbridge hosted 131 investors…
ESGRisk Management
July 22, 2021

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

Willis Towers Watson offers insights on how companies should assess the financial and economic risks of rising temperatures. 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…
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…