This post was originally published on this site
The inadequacies of the environmental, social and governance framework have been exposed to the high scores of French nursing-home operator before a scandal, a research firm says.
Orpea as recently as September highlighted upgrades from three firms: ISS ESG, Vigeo Eiris and Sustainalytics. Analysts at Scientific Beta, a research venture of the Singapore Exchange and the EDHEC Risk Institute, said the “unreliable nature of these inputs not only limits their usefulness but can at worst have negative impacts on the achievement of real-world ESG goals sought by investors.”
Orpea has since terminated its CEO and has hired two firms to conduct an investigation into allegations made in the book, The Gravediggers, of patient abuse and financial malpractice. Orpea has denied the allegations.
Orpea
ORP,
shares hit a fresh 52-week low on Monday and dropped 64% this year.
The broader European stock market edged higher, as the Stoxx Europe 600
SXXP,
rose 0.4% to 463.78. The U.K. FTSE 100
UKX,
led the major regional benchmarks with a 0.6% advance, as miners including BHP Group
BHP,
and financials including Prudential
PRU,
advanced.
