Morningstar Sustainalytics raises EU lending arm's ESG risk score over military funding
Recent decisions by EU leaders mean the EIB can now directly fund military equipment makers, having only last year introduced a so-called 'dual use' financing policy for technologies such as drones or targeting systems that can also have civilian uses.
Amelia Peden, Sustainalytics' lead EIB analyst said its key environmental, social and governance (ESG) 'risk' score had now moved up to 5.2 from 5, due to defence now being one of its permanent policy goals, with no ceiling on funding either.
"With these additional developments, the bank further increases its exposure to human rights and geopolitical risks," Peden said, "which may lead to stakeholder scrutiny, and the potential to affect its credit risk profile in the market."
Despite the increase - which followed one in January which lifted it from 4.2 - the EIB's risk remains "negligible" on Sustainalytics' scoring system and is still one of the top scorers of the near 16,000 banks, companies and other entities it rates.
The EU's lending arm has a balance sheet that runs to over a half trillion euros which is bigger than the World Bank's and is aiming to lend 100 billion euros ($116 billion) this year, including 3.5 billion euros for defence.
($1 = 0.8595 euros)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
5 minutes ago
- The Independent
Free childcare crisis as surge in demand leaves funding black hole
The UK government's expanded free childcare scheme is facing a significant funding shortfall due to unexpectedly high take-up, threatening the stability of the childcare sector. The scheme is now projected to cost an additional £1 billion annually from 2026/7, bringing the total to approximately £5 billion, substantially more than initial estimates. Education Secretary Bridget Phillipson described the high demand as a 'good problem to have' and expressed confidence in the September rollout, though she could not guarantee local nursery places for all parents. Childcare industry leaders and experts warn that insufficient funding, combined with existing staff shortages, could lead to widespread disappointment for parents and force providers to limit places or increase fees. The Institute for Fiscal Studies highlighted the 'substantial pressure' this places on the Department for Education's budget, suggesting potential cuts in other areas may be necessary to meet childcare commitments.
BBC News
6 minutes ago
- BBC News
Pubs and venues to be protected from noise complaints
Pubs and music venues will be given protection from noise complaints under planned changes to licensing the reforms, developers seeking to build near venues would be told to soundproof buildings, while permissions would be fast-tracked for new businesses or expanded outdoor areas in designated government hopes the changes will also make it easier to open new bars in disused shops, as well as promote outdoor drinking, al fresco dining and live the government said the changes would bring "vibrancy" to struggling town centres, the Conservatives said Labour's tax policy was responsible for "crippling the hospitality industry" in the first place. It comes after several well-loved pubs and music venue were left facing possible closure over noise complaints, leading to campaigns in some December, Moth Club, an independent music and comedy venue in east London, launched a petition challenging plans to build a new block of flats next door, over fears it could be shut down."Without being able to make noise, we can't make money," its manager told the BBC at the Manchester, venue Night and Day Cafe was subject to a three-year legal battle with the council over noise complaints lodged by a neighbour in was eventually permitted to continue operating as a nightclub with noise-limiting restrictions in government also hopes a planned reform of nationwide licensing regulations will help to reverse the decline in the pub industry by making it easier to open new British Beer and Pub Association says the number of pubs in the UK has steadily decreased every year since 2000, and estimated that 378 pubs would close in 2025 across England, Wales and Scotland, amounting to more than 5,600 direct job Tuesday, pub chain Brewdog was the latest to announce cuts, with 10 bars across the UK closing due to "rising costs, increased regulation, and economic pressures".Chancellor Rachel Reeves said "pubs and bars are at the heart of British life" as the government launched a consultation on the added: "For too long, they've been stifled by clunky, outdated rules. We're binning them, to protect pavement pints, al fresco dining and street parties - not just for the summer, but all year round."Andrew Griffith, the shadow business secretary, said: "Though any cutting of red tape for hospitality businesses is welcome, this is pure hypocrisy and inconsistency from Labour."He accused Labour of "crippling the hospitality industry by doubling business rates, imposing a Jobs Tax and a full-on strangulation of employment red tape".
Daily Mail
6 minutes ago
- Daily Mail
Home Secretary to make crowding more than 80 migrants into small boats a criminal offence – but critics say it'll do nothing to stem the tide
Yvette Cooper will use new laws to prosecute migrants who dangerously overcrowd small boats and put women and children at risk. The Home Secretary has ordered officials to expand the 'endangering lives at sea' offence, currently going through Parliament, to specifically include cases where up to 100 passengers can pack on to a single dinghy. It comes as the number of people per small boat has reached record levels this year, with insiders warning it is 'a matter of time' before one sinks from overcrowding. Ms Cooper is worried about women and children being 'crushed at sea' and told this newspaper: 'If you storm a boat, trampling over the bodies of tiny children, you are complicit in putting other people in danger.' She wants to use the new powers in the Border Security, Asylum and Immigration Bill to tackle migrants who overcrowd the dinghies. But critics suggested the plan was 'pathetic tinkering' that will not make a difference in stemming the flow of illegal migrants to Britain. Shadow Home Secretary Chris Philp said: 'The only way we're going to stop the boats is to do what America are doing. Deport every single illegal immigrant upon arrival – either to their home country or a third country like Rwanda.' And The Mail on Sunday can reveal the second-most overcrowded boat crossed the Channel on July 18 – with 97 on board, including 22 women and 17 children. The dinghy spent around ten hours limping towards the Channel's midpoint before eventually being rescued by a Border Force catamaran. The number of boats carrying 80 or more people has spiked in the past six months, helped by French officials doing nothing to stop smugglers bringing 'taxi boats' close to shore. By contrast, five years ago the dinghies typically had about 15 on board, sources said, and smugglers have been driven by greed to cram more people on amid helpful calmer seas. In the six years since the small-boat crossings began, up to the end of April 2024, only 20 boats crossed with 80 or more people on board. There have been 50 such dinghies after that point, and more than a third of those have arrived in the past two months. Ms Cooper's proposals would allow the Government to prosecute anyone found to be enabling boat overcrowding, or endangering passengers' lives by refusing help from French lifeguards (which would involve them not crossing the Channel). A Home Office official said: 'If the smuggling gangs carry on cramming 80, 90 or even 100 people on to these flimsy dinghies, it is simply a matter of time before the bottom falls out of one of them, and we will see a mass casualty event in the Channel. 'We should not have to wait for that to happen before we take action, which is why we need to get this endangerment law on the statute books and start enforcing it against anyone responsible for putting the lives of women and children at risk.' Tony Smith, former director general of the Border Force, said that anything combatting the 'vile' people-smuggling trade was welcome. But he added the 'devil would be in the detail' of Ms Cooper's powers, warning that pilots of small boats try to conceal themselves among other migrants as their dinghies approach the authorities. All migrants who come to the UK on small boats breach the law of illegal arrival, but usually seek asylum immediately – which makes prosecution harder as they wait for their applications to be processed. Only 1 per cent of all those who entered illegally since Labour came to power have been charged. Ms Cooper is also pushing for French police to start targeting such boats at the moment when smugglers bring them to shore, and force migrants wading through water before boarding to turn back. The Home Secretary said: 'We won't stand by as lives are put at risk and our border security is so badly undermined. That is why we are making it much easier to prosecute those who act in this callous and dangerous way.' She added: 'Vile people smugglers are increasingly cramming more and more people into these flimsy boats to inflate their profits with no regard for the lives they put at risk. Women and children are put into the centre of the boats where we have even seen people crushed to death.' But Opposition frontbenchers claimed the plan would not be enough to tackle overcrowding. Mr Philp said: 'It's pathetic. A piece of tinkering that will make absolutely no difference whatsoever. The Government promised to smash the gangs but has totally failed to do that. The gangs are using bigger boats and cramming more in just so they can make more money. 'It is already a criminal offence to facilitate illegal immigration with a long prison sentence. They need to start enforcing that, not replicating existing legislation.'
