SFDR subsidiary ESG disclosures: ESMA clarifications

EU regulators clarify that subsidiary financing vehicles and special purpose vehicles should align in terms of sustainability risks with whatever they are funding, contrary to what has been observed in some recent market transactions.

 We  believe big coal does not deserve top ESG ratings or index inclusions.  We discuss this and the process of moving coal assets from the public  domain through delisting companies. 

The Asia-Pacific (APAC) region continues to be an engine of growth, but a carbon-intensive one, as significant amounts of power are generated from coal.

We analyse the potential for debt investors to support transition, by resisting sales to private ownership, and encouraging decommissioning by using innovative debt structures.

(5 Jun 2023)