Airlines Post-COVID-19: The Challenges to a Climate-Friendly Recovery

Planes grounded, borders closed and passengers staying at home: the past months haven’t been easy for the airline industry. COVID-19 has led to the deepest crisis ever in the history of the sector.[i] Airlines are in dire need of cash to recover, while at the same time the industry is also expected to adapt and prepare itself for the more critical crisis ahead that is climate change. Despite the slowdown of air travel, long term prospects of mitigating carbon footprint of the industry are not clear. Carbon commitments supported by comprehensive programs are in place, nonetheless, our research suggests that existing measures may not be sufficient to curve down emissions and mitigate climate change.

Smart Beta and ESG

Aberdeen Standard Investments, Sustainalytics and the University of Oxford Smith School of Enterprise and Environment have published “Smart Beta and ESG: Promoting sustainability in smart beta investment strategies”.

The Shift to Remote Work: Examining the Risk Landscape

This blog post is the first in a two-part series. In our initial article, we will explore cybersecurity and remote work during the COVID-19 pandemic and its role in expanding an enterprise’s attack surface. In our next blog post, we will examine privacy issues related to COVID-19 contact-tracing.

Cruising Post-COVID-19: Lessons and Challenges for the Cruise Ship Industry

In this blog, we assess the impacts of COVID-19 on the cruise ship industry by taking a closer look at the four biggest cruise companies and their COVID-19-related controversies since February 2020. We also gauge their management of product governance and human capital issues, with the aim of informing investors of each company’s preparedness to address relevant risks as well as challenges and potential hurdles in the industry’s post-pandemic operations.

ESG Performance Analytics

Sustainalytics´ ESG Performance Analytics provides companies with an in-depth assessment of their ESG Risk Rating compared relatively to a select number of industry peers.

COVID-19 and ESG at a Reasonable Price in Australia

“We are living in extraordinary times” seems to be these days’ mantra. It certainly reflects well the dynamics of global share markets, including Australia’s, as shown in the chart below.

Responsible Cleantech: The Processes Behind the Products

The growth of the cleantech industry seems resilient from an economic perspective. For it to maintain its social license-to-operate, however, it will also need to formulate answers to the environmental and social challenges throughout its value chains.

What are Sustainability Linked Loans (SLLs)?

A Sustainability Linked Loan is focused on incentivizing sustainability improvements among corporate borrowers by linking the terms of the loan to their overall sustainability performance targets. SLLs can be used for general corporate purposes as the terms are tied solely to the borrower’s ESG-related performance.

Beer, Wine & Spirits in the Era of COVID-19

Companies operating in the Beer, Wine and Spirits subindustry have suffered from knock-on effects of COVID-19 lockdown measures, as governments across the globe have moved to close hotels, bars and restaurants, and ban large events and gatherings, such as festivals and sports events. Given that these venues are an important source of revenue for alcohol companies, investors within this space may benefit from a closer look at how firms have adapted to the rapidly changing market conditions.

Exhibit 1 ESG Spotlight July 2020

ESG Spotlight | The COVID-19 Incidents Curve: Corporate Events and Impacts

Sustainalytics’ new ESG Spotlight Series report, The COVID-19 Incidents Curve: Corporate Events and Impacts, explores emerging ESG trends related to COVID-19 corporate incidents tracked since January 2020.

Lime shoreline

Corporate ESG Ratings in Latin America: Use Cases for Companies and Banks | Webinar

To take advantage of the demand for ESG-related disclosure and communicate their sustainability achievements to internal and external stakeholders, many forward-looking companies are leveraging ESG information in their capital raising activities and marketing efforts.

Coronavirus: Are We Protecting the Most Vulnerable?

As the COVID-19 pandemic swept across the globe at the start of 2020, frontline medical care became a top priority in stopping the virus. Contrary to the improvement in case management at hospitals, the number of cases in long term care homes (LTCH) rose sharply. With the situation evolving by the hour at times, the number of infections and deaths rose exponentially in the US.

Coronavirus Healthcare Update: Pricing, Profit and Public Opinion

With this post, we continue to examine the ESG risks and opportunities inherent in the worldwide race to develop a treatment or vaccine for COVID-19.

Hot Assets: Global Equities and Physical Climate Risk

In this report, we build on investors’ mounting interest in climate risk analysis by assessing relevant company disclosures and risk mitigation programs.

Soaring on Success: The Growth of Sustainability Linked Loans

This four-part guide focuses on key areas of sustainable finance, offering companies, corporate investment banks and investors a better understanding of market trends and important developments.

Coronavirus: Food Security in a Global Pandemic

As Covid-19 continues to ravage the world, governments have responded with movement restrictions and border closures. While necessary to protect public health, these stricter safety measures are disrupting food supply chains globally, forcing prices upward and increasing the risk of social unrest.

Sustainable Fund Labels: Diverse Definitions of Sustainability

Sustainable financial products are marked with an increasingly large list of tags, from green, sustainable, socially responsible to thematic ESG, water, carbon or impact funds, and not every investor might know how to make sense of these terms. Sustainable fund labels can be one way to signal to the market that the fund has a dedicated responsible investment strategy.

Sustainability Linked Bonds

Sustainability-Linked Bonds (SLBs) are a forward-looking performance-based instrument, for which the bond’s financial or structural characteristics (such as the coupon rate) are adjusted depending on the achievement of pre-defined sustainability performance targets.

How Investors Integrate ESG: A Typology of Approaches

This report, How Investors are Integrating ESG: A Typology of Approaches, classifies ESG integration approaches along three dimensions: management (who is integrating ESG), research (what is being integrated), and application (how the integration is taking place). The authors then used the typology to identify six prevailing approaches of ESG integration in the market today.

ESGarp Scores: In Search of Reasonably Priced, Low ESG Risk Stocks

The COVID-19 pandemic is likely to further amp up the market’s interest in ESG investment research. It’s not just that ESG funds and indices have generally outperformed their non-ESG counterparts since the COVID-19 sell-off began in mid-February.[i] It’s also that the pandemic itself has drawn attention to ESG issues ranging from biodiversity and habitat loss to employee relations and supply chain management.