Viewpoints

Social at the Center of ESG

As we actively engage with bond issuers through this pandemic-driven economic crisis, we see five major social themes affecting creditworthiness and driving new social bond issuance.

The social pillar of environmental, social, and governance (ESG) investing is all about people: employees, customers, and suppliers. The outbreak of COVID-19, followed by global demonstrations calling for action on racial injustice and social inequality, has propelled the S of ESG to the top of corporate and investor agendas.

This is arguably the clearest example of a sustainability crisis in the 21st century, and has highlighted how interconnected, interdependent, and vulnerable the world can be. Moreover, this crisis is disproportionately affecting the most vulnerable communities in the world, exposing and exacerbating the impacts of inequality in many regions.

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Del Anderson

Credit Analyst

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