How Timely ESG Data Signals Investors
Wirecard AG: Timely ESG signals warned investors as tremors before “The Big One”
Identifying red flags and critical issues early on benefits investors immensely and TruValue Labs did just that recently. Due primarily to data in the Dynamic Materiality™ view of ESG categories, warning signs at German fintech giant Wirecard AG emerged years prior to the arrest of its former CEO and insolvency filing.
“Timely ESG data can help mitigate risk—Wirecard’s insolvency was foreshadowed by timely ESG data... underscoring the importance of ESG data for all investors.”
Over the course of two years, declining ESG scores resulted from a “classic drip” of bad news, including multiple allegations of bad conduct. Learn more about how TruValue tracked Wirecard’s downward trend in its brief on the topic.
The Research Brief covers:
Wirecard’s long-term ESG Insight Score, long above the Consumer Finance industry average, crossed beneath that mark in late 2018
Two-year chart shows timely Pulse score established new, sharply lower range that equity price took years to match
On the credit risk side of the equation, Wirecard also escaped critical attention from some raters
Download the Research Brief here to read more.
Credit: TruValue Research Team