The Thames Water scandal is forcing investors to question whether it’s acceptable to hold green bonds from an issuer that is damaging the environment, even if the specific proceeds get channeled into green works. — Bloomberg
LONDON: Environmental, social and governance (ESG) funds that piled into green bonds sold by Thames Water Plc are now trying to figure out what the ESG disasters threatening the future of the utility mean for their holdings.
The company, whose mismanagement left Britain’s rivers fouled with raw sewage, has sold four green bonds since the beginning of 2022, for a nominal total of £2.8bil (US$3bil or RM13.96bil).
