Daily update: May 24, 2021

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Cyber ​​security is emerging as a major environmental, social and governance (ESG) concern as cyber attacks increase in frequency and severity, with financial losses, reputation damage and market disruption. that may result from it.

Cyber ​​attacks have increased during the pandemic. Coupled with the additional security risks of working remotely, the risk of security breaches has forced companies to accelerate their digital transformation plans. But the general concerns of policymakers, regulators and market players about the vulnerability of companies to cyber attacks have increased.

After foreign hackers were able to infiltrate U.S. agency systems by hacking Texas-based software company SolarWinds late last year, cybersecurity experts called on companies to implement stronger cyber defenses. Even before the cyberattack on Microsoft that exploded into a global security crisis earlier this year, tech company chairman Brad Smith advocated for lawmakers to impose disclosure requirements on businesses and organizations in order to report any cyberattacks they experience. The cyberattack on Colonial Pipeline, a major fuel supply artery in the United States, is the most recent incident that has raised the question of whether industries are sufficiently prepared to mitigate risks and protect vulnerabilities.

The attack on the Colonial Pipeline “obviously underscores the need for continued vigilance on the part not only of operators, but also of the government itself to determine who is targeting critical energy infrastructure for potential attacks,” said former Secretary of the US Department of Energy, Dan Brouillette. told S&P Global Market Intelligence. “I think we need to do a better job, frankly, on the government side of sharing some information with the industry so they know what the real threats are and can help determine what the best defenses are. deploy against these types of threats… We need to think about cybersecurity – and, more importantly, intelligence around cybersecurity – perhaps in a different way if we are to protect infrastructure. “

Greater visibility into threats and actual attacks could minimize damage to entire systems.

“I would discuss visibility, and with defense in depth, we can take a more surgical approach to containment … where we detect the anomaly faster, contextualize that anomaly, understand what kind of impacts it might have on the production, and then take proportional action, ”Leo Simonovich, vice president and global head of industrial cybersecurity and digital security at Siemens Energy AG, told S&P Global Market Intelligence about the importance of visibility in the connection physical and digital worlds. “We may need to shut down an asset, or maybe we need to shut down part of the system, but at the end of the day, that puts us in the driver’s seat to react more quickly and responsibly. a higher degree of precision. “

According to S&P Global Ratings, expanding and developing the cyber insurance market to cover losses from unexpected claims related to cybersecurity could materialize as another solution to guard against such governance risks.

Today it’s Monday 24 May 2021, and here is the essential intelligence of today.

Uncertainty in the global economy

COVID-19 cut investments by 8% in 2020, but recovery is expected in 2021

In early 2020, mining companies reviewed by S&P Global Market Intelligence were forecasting capital spending of $ 162 billion, 9% more than spending in 2019. However, as the COVID-19 pandemic broke out globally , regional lockdowns forced work stoppages and supply chains were in upheaval.

: Read the full article on S&P Global Market Intelligence

The Health Care Credit Beat: Reflections on AmerisourceBergen, Bausch, Cigna, Pfizer and Surgery Partners’ Income

The quarterly earnings season is entering its final weeks, with healthcare sector performance largely neutral to favorable from a rating perspective. As the COVID-19 vaccination rate in the United States increases steadily and the effects of the pandemic wane, patient procedures are expected to continue to return to near-normal volumes. This bodes well for healthcare providers as well as manufacturers who depend on the volumes of procedures.

: Read the full report from S&P Global Ratings

The banking sector under pressure

Big APAC banks increase their FinTech bets

Large banks in the Asia-Pacific region could become a greater source of capital for fintech startups as lenders seek to secure their businesses.

: Read the full article on S&P Global Market Intelligence

Which Banks Are Positioned For Low Rates, Digital Adoption Driven By The Pandemic

As digital adoption has grown during the pandemic, banks have shrunk their branch networks at an accelerated pace, while investing in new technologies to respond to changes in customer behavior. A handful of institutions acted before the pandemic even began to position itself for rapid digital transformation, and advisers believe many more will be forced to follow to reduce their fixed cost base in a challenging, marked operating environment. by low and lackluster interest rates. loan growth.

: Read the full article on S&P Global Market Intelligence

ESG during the COVID-19 era

Analysis: Japan’s electricity supply faces risks as it moves towards the decarbonization of the energy mix

Japan’s latest electricity supply outlook for the coming summer and winter months highlights the immediate risks of energy supply during the two peak demand seasons – a trend that is likely to continue in the future. the years to come when the country will undertake to decarbonize its electricity production mix.

: Read the full article on S&P Global Platts

Use of hydrogen is vital to Western Australia’s mining ESG goals, experts say

Responding to increasingly climate-conscious investors, the future of Western Australia’s mining sector depends on its ability to use hydrogen as fuel and in downstream processes, experts said on May 20.

: Read the full article on S&P Global Market Intelligence

Biden issues order to protect US from climate-related financial risks

On May 20, President Joe Biden announced new measures to protect the US economy from the financial risks of climate change. Biden has issued a “climate-related financial risk decree” that will require the development of a “comprehensive government climate risk strategy” to identify and disclose climate-related financial risks to the federal government and its assets.

: Read the full article on S&P Global Market Intelligence

The future of energy and raw materials

Major North Appalachian Coal Mines Boost Production in Q1 as Pandemic Pressure eases

The top 25 coal mines in the Northern Appalachian Basin produced more coal in the first quarter of 2021, beating previous quarter and first quarter 2020 levels, as pressure from COVID-19 lockdowns eased . The region’s 25 largest mines by production generated 22.3 million tonnes of coal in the first quarter, up from 19.1 million tonnes in the previous quarter and 19.0 million tonnes in the first quarter of 2020, according to a report. analysis by S&P Global Market Intelligence.

: Read the full article on S&P Global Market Intelligence

Exports and global demand increase NGL prices of major US producers and revenues in the first quarter

Strong international demand for liquefied petroleum gas led to a sharp rise in realized prices during the first quarter, increasing NGL revenues of some U.S. shale producers by more than 100% over the time of year previous.

: Read the full article on S&P Global Market Intelligence

Ukraine ‘gravely alarmed’ over Nord Stream 2 sanctions lift as US senators rise

Dozens of Ukrainian gas industry officials and lawmakers have called for work on the Nord Stream 2 pipeline to be stopped in an open letter following the US government’s decision to waive sanctions against the pipeline developer.

: Read the full article on S&P Global Platts

Written and compiled by Molly Mintz.

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