Daily Brief ESG: Still Many “Parent-Subsidiary Listings” Keep to Provide Investment Opportunities for Inefficiencies and more

• Maintaining a parent-subsidiary listing that fails to ensure the interests of minority shareholders indicates that the parent company is willing to tolerate dysfunctional corporate governance of the subsidiary.
• Parent-Subsidiary listings drain the profits of profitable subsidiaries from the parent company, reducing profits and corporate value. The solution to this problem is to eliminate parent-subsidiary listings.
• The elimination of parent-subsidiary listings through TOB will reduce market inefficiencies and improve the quality of TSE-listed companies.

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Vallourec’s ESG as “Adequate”. While the Governance, Environmental and Social pillars are “Strong”, the company’s “Material” Controversies weigh on the overall score. Disclosure is “Strong”.