Global ESG Update
/ISS looks into big tobacco’s foray in the oral drug delivery space
Philip Morris International has agreed to buy a Danish pharmaceutical company, Fertin Pharma, which specialise in oral drug delivery systems. The move is an indication that Philip Morris is moving into the oral nicotine market, prompting warnings to investors regarding youth-centred marketing and flavourings in e-cigarettes and oral nicotine products. Philip Morris wants to deliver a ‘smoke-free future’, with a 2025 target to generate over half the company’s net revenues from non-combustible tobacco products.
Fertin Pharma researches designs and manufactures gums, pouches, dissolvable tablets and other solid oral systems to deliver active ingredients, of which nicotine is one.
IOSCO consultation on ESG ratings and data providers
Feedback is being sought on a set of proposed recommendations regarding environmental, social and governance (ESG) ratings and data providers by the board of the International Organisation of Securities Commissions (IOSCO).
The IOSCO consultation report, Environmental, Social and Governance (ESG) Ratings and Data Providers, is to help IOSCO members to understand the implications of activities of ESG ratings and data providers in establishing frameworks to mitigate the risks of these activities. A set of recommendations has been developed to support providers of ESG ratings and the companies that are the subject of these ratings.
Fact-finding as part of the report’s production revealed that a lack of transparency of methodologies was a major issue, alongside uneven coverage of products offered across industries and locales. These factors could lead to gaps and inconsistencies when applied to investment strategies and bring up possible conflicts of interest including fee structures and separation of business lines offering advisory services to improve ratings performance.
