dsm-firmenich (formerly DSM N.V. and Firmenich) tapped the debt market today with an €750mn, 11-year benchmark bond. This represents a rare engagement opportunity for investors that want the company to get to grips with its exposure to deforestation risks.
The chemicals company has high exposure to deforestation-linked commodities like palm oil and soy, and has a poor rating from the Forest 500 initiative.
However, it has so far said nothing in bond prospectuses about the risks this exposure entails. This in spite of the incoming EU Deforestation Regulation (EUDR), which is currently due to take effect in 2025.
This latest issuance offers investors a golden opportunity to push for greater transparency and stronger commitments to deforestation-free sourcing.
Based in London, Jo leads AFII’s research and a global team supporting fixed income investors as they align their portfolios with climate and sustainability goals. She joined AFII after 18 years in fixed income markets at JPMorgan.
Based in London, Andrew is a capital markets lawyer focused on AFII’s research and advocacy, particularly the use of law and regulation in market change. He was a partner at Allen & Overy for 18 years.
