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By Rodrigo Campos, Davide Barbuscia and Isla Binnie
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NEW YORK, March 10 (Reuters) –
MSCI ESG Analysis mentioned on Friday it not too long ago modified a few of its environmental, social and governance assessments of Adani Group entities, after the Indian conglomerate was caught up in a short-selling storm in latest weeks.
Seven listed Adani Group corporations misplaced over $100 billion in market worth mixed after a Jan. 24 report by Hindenburg Analysis alleged inventory manipulation and improper use of tax havens, and flagged issues over debt ranges. Adani has rejected the issues and denied any wrongdoing.
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“On March 3, we downgraded our evaluation of the Hindenburg-related controversy circumstances to ‘average’ from ‘minor’ following new developments within the related circumstances,” MSCI ESG Analysis mentioned in a press release to Reuters.
It mentioned the downgrade and ensuing rating adjustments didn’t result in any adjustments in total ESG Scores of every firm.
Entities rated by MSCI ESG Analysis embody Adani Inexperienced Power, Adani Energy, Adani Complete Fuel, Adani Transmission and Adani Enterprises, in accordance with the assertion.
This week, MSCI ESG Analysis flagged all its lined Adani Group entities for the metric of accounting investigations, whereas some had been flagged for the securities valuations metric, it mentioned.
MSCI’s ESG Controversies scoring and flagging system alerts traders to potential reputational dangers, in accordance with a factsheet produced by the company.
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“Throughout numerous Adani Group entities, MSCI ESG Analysis has recognized points regarding governance, board independence, associated occasion transactions, and controlling shareholders,” the corporate mentioned.
Because the short-seller report launch, MSCI ESG Analysis has added “Bribery and Fraud” and “Governance Constructions” controversy circumstances to all Adani Group corporations in its protection, it mentioned.
Adani Group didn’t instantly reply to a request for remark despatched exterior of enterprise hours.
Firm representatives have met fixed-income traders over the previous two weeks in a world roadshow.
Sustainability rankings firm Sustainalytics downgraded company governance-related scores for some Adani Group corporations
final month
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MSCI ESG Analysis mentioned on Friday it was intently monitoring developments within the Adani case, “together with any related potential launch of regulator-driven investigations or any ongoing developments associated to governance constructions, audit and accounting practices.” (Reporting by Rodrigo Campos, Isla Binnie and Davide Barbuscia; Enhancing by Leslie Adler)
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