22:02 11 February 2020
Euler Hermes to consider ESG factors in risk assessment
Euler Hermes, the trade receivables insurer, will include environmental, social and corporate governance (ESG) issues in its rating methodology, the company said. Thus, it will be the first company to insure loans taking into account ESG factors.
The new country risk rating methodology seeks to capture vulnerability to business threats related to climate change and social unrest that may be exposed to higher financing costs and disrupted supply chains as well as business interruptions.
“It is now clear to businesses and investors that these issues will affect growth, market share, and profitability. The source of new payment risks may be more difficult access to finance by companies with a higher carbon footprint,” Euler Hermes said.
(300gospodarka)
