Fallen Angels: Leveraging ESG to avoid zombiesMay 18, 2020
Fallen 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.
Product Design and Lifecycle Management
Product Quality and Safety