The explanation appears to be "passive investments" which we discuss. Moody’s Investors Service has placed North Queensland Export Terminal (NQXT) on negative outlook following the emergence of refinancing risks related to ADAABB. Moody’s reasoning includes the relationship between NQXT and the Carmichael coal mine development, regarding the fact that NQXT has a pivotal role in exporting coal from the greenfield Carmichael thermal coal mine, through Bravus Mining and a wholly owned subsidiary of Adani Enterprises Ltd.
Adani Enterprises have exposure to the building of what we would call the most controversial new thermal coal mine in the world. Most of the investments appear to be coming through passive strategies.
However, given strong affirmation from many of these firms to not finance new coal mines and to be committed to climate change mitigation, we believe there is a duty to actively disclose that such passive vehicles are exempt from the marketed ESG frameworks, especially in situations where the end-clients may have zero exposure tolerance for new coal mine financing.