Fallen Angels: Leveraging ESG to avoid zombies
May 18, 2020Fallen Angels: Leveraging ESG to avoid zombies
In this note we take a look at a cohort of ‘Fallen Angels’, issuers whose debt has been downgraded from investment grade to junk.
As a group, these issuers’ ESG performance lags the S&P 500. We observe four categories defined by the Sustainability Accounting Standards Board (SASB) that stand out as commanding scrutiny from stakeholders:
- GHG Emissions
- Labor Practices
- Product Design and Lifecycle Management
- Product Quality and Safety
In addition to a high-level ESG assessment, we briefly introduce the notion of a Climate Risk Factor built from carbon intensity estimates and Climate Momentum Signals.
Industry
Material Categories
Material Categories
GHG Emissions
Labor Practices
Product Design and Lifecycle Management
Product Quality and Safety
Labor Practices
Product Design and Lifecycle Management
Product Quality and Safety