Below is an excerpt from ISS ESG’s recently released “Should COVID-19 Bailouts Include ESG Performance Metrics?: An Australian Case Study.” The full paper is available for download from the Institutional Shareholder Services (ISS) online library.
The COVID-19 crisis has had a catastrophic impact on businesses and economies around the world, and Australia is no exception. In many instances governments have been called upon to bail out companies in financial difficulties as a result of health-related societal lockdowns.
Historically, entities that receive government support during a crisis can become the subject of criticism for the way they managed their affairs before, during and after the crisis. This is especially the case when governments turn to austerity measures to reduce public debt accrued in the process of saving the economy.
By: Duncan Paterson, ISS ESG Australia