This is the fourth and the last article in the series of IdealRatings coverage about COVID-19 in ESG.

“All of us want to survive the Coronavirus Pandemic. Most of us will, and after we do, we will look back either with pride or regret on how we dealt with things during the crisis.” Donald T. Iannone

Mr. Iannone highlighted the core of this crisis; whatever will happen will happen, but the consequences are what will matter the most. Companies that will remain in business after this emergency state will be held accountable for their present actions and response and their future plans. Accordingly, governance key performance indicators might witness new additions or shifts in priorities.

Given the nature of the current status, crisis and risk management are considered the starting point. Companies should set various dynamic plans that minimize the impact of the virus on the continuity of their businesses. A two-way communication is recommended to take place with all stakeholders, so as to consider all feedback received from any party to ensure full alignment. This requires proper board oversight combined with full collaboration from the executive team. Plans should take into consideration new governmental regulations and/or priorities. It should be expected that after this ordeal companies would have learned it the hard way, but crisis management should take a top priority and accordingly a proper risk management plan would be set, regularly monitored and updated.

On the financial level, full and transparent disclosure will be expected on the current status, forecasts based on the set scenarios, and impact on all financial elements, especially liabilities which might affect other stakeholders. All of this should be done in a timely manner. It is also expected that more suspensions of dividend payouts payments and stock repurchases will take place. Moreover, executives and directors’ compensations will face a sound decrease. Accordingly, with proper capital allocation and precise forecasts companies can start restructuring their business.

Furthermore, with the deviation from the normal market pace and the previously expected changes on the E, S and G levels, the following increases could occur; number of local suppliers, corruption cases, competition, cutting costs, etc., and every one of these comes with its potential risks. Therefore, companies’ internal regulations and code of ethics should be revisited and all employees and suppliers should receive a thorough training.

With the above requirements and the rising appetite for ESG market, given its proven resilience amidst the crisis, the market is expected to observe an increase in proxy voting and in the quality and quantity of disclosure.

Written by Mahinaz El-Aasser; ESG Product Manager at IdealRatings, Inc. She can be contacted at melaasser@idealrtaings.com

The post Heavy G Duties first appeared on IdealRatings ESG, Ethical and Faith-based Screening Solutions.

This is the third article in the series of IdealRatings coverage about COVID-19 in ESG.

Companies are quite in an unenviable position; between taking cutting costs decisions and being asked to provide a helping hand for the community in its fight against COVID-19. The list of companies that offered help to the society is quite long; from companies providing donations, to ones that shifted their main business activities to produce needed items during this period like masks and sanitizers, to even ones that publicly shared IP rights of required equipment. Expected changes might take place in the form of:
1. Possible reductions in donations, due to the economic slowdown and some companies going out of business.
2. An increased role of the capital market through the issuance of social bonds. This kind of bonds can assist countries and companies hit by COVID-19 in countless ways. It can help in supporting the healthcare system, delivering the long-awaited vaccine, economic recovery, sustaining business, etc. So far, the market has witnessed such issuances from supranationals including; European Investment Bank that issued SEK3bn social bonds, African Development Bank with $3bn issuance, and the International Finance Corporation that came with two issuances $1bn and SEK3bn.
3. A shift away from certain previous targets to other ones in the charity field. Sustainable Development Goal (SDG) number 3, Good Health and Well-Being, is the one gaining traction at the meantime where lots of companies and even governments support are directed towards healthcare sector, medications and the development of a vaccine for this virus. This sector is facing quite a challenge as the number of patients have exceeded its capacity, even in highly developed nations.

Read full article: https://bit.ly/ESG3-LI

The post Eye Opener for the ‘S’-Part 2 first appeared on IdealRatings ESG, Ethical and Faith-based Screening Solutions.

This is the second article in the series of IdealRatings coverage about COVID-19 in ESG.

Despite the fact that COVID-19 is considered a major curse on humanity, with the current death tolls, it still could be considered a silver lining for the Social pillar in the Responsible Investment market. The virus came as an eye opener towards this aspect that seemed to face underestimated rights. To analyze the expected changes, it seemed important to walk through the main stakeholders in the social pillar; employees, customers, supply chain, and community. Numerous challenges will be faced by companies in these facets, and countless decisions will be made. Choices are considered limited and the ones that will be considered negative to any of the stakeholders can’t still be considered an indictment given the current situation. However, companies’ rapid reactions and the nature of such responses to all the underlying challenges will be the key benchmark to which companies are most likely to sustain.

Read full article: https://bit.ly/Pb-ESG2

The post Eye Opener for the ‘S’-Part 1 first appeared on IdealRatings ESG, Ethical and Faith-based Screening Solutions.

When Abraham Maslow introduced his “Theory of Human Motivation”, back in 1943, he implicitly combined both Environmental and Social aspects at the base of his “Hierarchy of Needs” pyramid. To him, physiological needs included homeostasis and appetites which are “a fairly efficient indication of actual needs or lacks in the body”. In simple words; to maintain a normal state of blood stream in a human body, proper breathing, food, water, shelter and warmth were necessities for survival of mankind. Despite this equilibrium between environmental and social necessities, several articles highlighted the fact of the missing “S”, while the “E” factor has been leading the priority of the Responsible Investment market. Climate change and related environment topics topped most of the news headlines and conferences’ agendas. COVID-19 came as a blessing in disguise to adjust the scale and re-shuffle the priorities of the market, giving more attention towards the “Social” aspects and loading the “Governance” with heavier burdens. In this articles’ series, IdealRatings, Inc. will be highlighting the effect COVID-19 has placed on the ESG market through separate articles per pillar.

Read full article: https://bit.ly/LI-ESG1

The post COVID-19 & ESG: Blessing for the E, Eye Opener for the S & Heavy Duties for the G first appeared on IdealRatings ESG, Ethical and Faith-based Screening Solutions.

With a debate between whether coal industry will sustain its stance in the global energy market, ranking third with a 27% share, or will it fade away given the rising movements towards decarbonization, it was thus deemed important to tackle the details of this business. Climate change and human rights topics are making their way to news headlines, more frequently lately, and their relevance to the coal industry couldn’t be ignore. Given the industry’s nature and with the current trends towards environmental conservation and human rights awareness campaigns, coal industry is facing various challenges which will definitely affect involved companies’ financial status. Throughout this white paper, IdealRatings, Inc. will go in depth in the coal industry; from basic definitions, to formation & mining processes, types and global geographical presence. Potential ESG and financial risks will also be highlighted. Renewable energy still seems to be the normal possible alternative, though a clear plan has to be set by companies towards gradual shifting in its business model and plans.

Read full article: https://go.aws/2MPRHFW

The post Coal A Sustainable Industry? first appeared on IdealRatings ESG, Ethical and Faith-based Screening Solutions.