As a result of the Hindenburg Research study controversy, global rating agency Standard & Poor’s (S&P) is apparently reviewing Adani Transmission’s environmental, social, and governance (ESG) examination. The news comes only a few hours after MSCI Inc. allegedly agreed to disclose its ESG rating results for Adani Group entities.
According to a Business Standard story, S&P’s decision to evaluate Adani Transmission’s ESG rating follows claims of “serious government failures” at Adani Group enterprises.
“We will closely monitor developments, including any investigations by the Indian regulators and any additional disclosures by the Adani Group… Our current assessment of ATL’s governance factors in some controlling shareholders’ weight in decision-making, including on related-party transactions. “Common parentage and name-sharing also expose ATL to reputational risks from the wider Adani group,” Business Standard quoted S&P’s official statement as saying.
According to the study, S&P’s ESG rating evaluation of Adani Transmission comes against a backdrop of allegations regarding the Gautam Adani-led group’s governance and disclosures, which “may impair the interest of capital providers and business partners in supporting ATL’s expansion.”
Furthermore, S&P is scheduled to conclude its ESG analysis of Adani Transmission in the coming months. While the agency thinks that the claims may raise overall financial and operational risks for Adani Group firms, it will also reportedly analyse the allegations’ impact on the ESG assessment.
Previously, media sources indicated that MSCI Inc. would shortly release the findings of a quarterly assessment for its ESG and climate indices. While the findings are due this week, it is worth noting that MSCI has not revised its ratings of Adani Group firms since the publication of the Hindenburg Research study.