Credit Rating Perspectives on ESG with MUFG

In this month’s regular meeting of the ESG Working Group, NeuGroup members plan to cover two topics:

1. NeuGroup ESG working group members have discussed ESG risk ratings and how they fit within traditional ratings with guest firms including Sustainalytics, Deloitte, SocGen and others. In this session, Hailey Orr (Director, Capital Market Strategist) at MUFG and her colleagues will discuss the recent MUFG white paper “Credit Rating & Accounting Perspectives on ESG,” and facilitate an informal discussion on topics including:
   • • • • How corporates are engaging with agencies (if at all) on ESG topics?
         • How different corporate treasury groups are coordinating efforts internally, especially with sustainability offices?
         • An update on what the three traditional credit agencies are doing on this front, including their specific, very different approaches (including impact scores, relevancy assessments, risk heat maps and ESG evaluations separate from the rating process).
         • As with most NeuGroup sessions, members will have a chance to compare notes with their peers directly and have the opportunity for open Q&A throughout the discussion.

2. Initiating a discussion on how treasurer teams can frame the ESG topic with their senior leadership.  ESG topics are evolving so quickly, that it can sometimes be challenging to help the C-suite translate high-minded ideas they are being challenged with every day into tactical plans that cover all aspects of a mature ESG strategy. Members will have a chance to view one potential “map” to put these topics in context with one another, including an evaluation for leaders as to where the most impact can come, the quickest.

NeuGroup formed the ESG Working Group in 2020 as a result of requests from members and the multiple ESG discussions appearing in individual peer group meetings. These more informal working sessions provide an opportunity for interested members to share experiences on common topics, document best practices and welcome outside experts to speak on current trends – including companies that are not yet NeuGroup members. The ESG group will also coordinate with virtual interactive sessions on similar topics, and is expected to include discussions on Green Bonds, ESG Risk ratings, sustainability KPIs, compliance, and ESG returns among others.

Working Groups sessions are meant for interested participants from across the NeuGroup network, and approved non-NeuGroup members. They are ad hoc cohorts that NeuGroup organizes when a critical “hot topic” has captured a wide range of members’ attention. Working Groups can meet just once, a handful of times, or become ongoing venues to discuss these cross-peer group issues. Recent examples include LIBOR transition, ESG, D&I, Treasury Management Systems and others. These groups often include both subject matter experts, as well as members just wishing to learn, with the possibility of splitting the groups for more detailed discussions.