Adani stock: A JP Morgan investing division eliminates exposure from its ESG portfolio
Following the January 24 report by short-seller Hindenburg Research, shares of Adani Group are still under pressure.
According to a Bloomberg review of data, the asset management division of JPMorgan Chase & Co. has separated its ESG portfolio from its exposure to the Adani conglomerate.
According to a 24-hour data assessment by Bloomberg, the JPMorgan Global Emerging Markets Research Enhanced Index Equity ESG UCITS ETF sold more than 70,000 shares of cement manufacturer ACC Ltd. than it had owned since May 2021. examines changes following the Hindenburg Report's publication in January.
Data reveal that since July of last year, a second fund, the Japan Research Enhanced Index Equity ESG UCITS ETF from JP Morgan AC Asia Pacific, has sold around 1,350 shares in the company. According to Bloomberg data, the decision means that JP Morgan, which held a 0.04% position in ACC, is no longer exposed to any portion of the Adani Group through ESG funds.
Both funds have Article 8 registration, which means that they must "advance" ESG objectives in accordance with EU legislation. JP Morgan is still holding shares of Adani in non-ESG funds.
After a January 24 report by short-seller Hindenburg Research claimed that the company was guilty of fraud and market manipulation, shares of Adani Group are still under pressure.
The Adani Group has denied the allegations and employed attorneys and public relations specialists in an effort to repair its reputation.
Since the US short-sellers released their research on January 24, the market worth of each of the ten listed companies has decreased by 12.37 lakh crore ($12,37,891.56 crore). The group's total market value is at 6.81 lakh crore, down from 19.19 lakh crore as of 24 January. Business interests of the group include everything from seaports to airports, edible oil and commodities, energy and cement, to data centres.
Yet, since the Hindenburg report, MSCI, a different global index provider, has not altered its ESG ratings of Adani companies. Both Adani Green Energy Limited and Adani Total Gas Limited have A ratings. The lowest ESG grade assigned by MSCI, CCC, is held by the three companies Adani Enterprises Ltd, Adani Power Ltd, and Adani Ports and Special Economic Zone Ltd.
