As a result, ESG risks and opportunities may be mispriced, and companies that do not disclose—and hence score poorly—may see adverse impacts on their cost of capital. We recommend resource-constrained companies complete a materiality assessment, identify a handful of ESG issues that matter to their business, then craft a fit-for-purpose approach to ESG risk management and disclosure.
The high yield universe has lagged the efforts of Fortune 500 companies to address sustainability issues material to their businesses.
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Crawl-Walk-Run: Fit for Purpose Solutions to Address Climate Change