Adani stocks: JPMorgan investment unit wipes its ESG portfolio clean of exposure

The JPMorgan Global Emerging Markets Research Enhanced Index Equity ESG UCITS ETF offloaded the more than 70,000 shares in cement manufacturer ACC Ltd., exiting a stake it’s held since May 2021, according to a data review by Bloomberg that looked at movements following the January 24 publication of the Hindenburg report. 

A second fund, the JPMorgan AC Asia Pacific ex Japan Research Enhanced Index Equity ESG UCITS ETF, sold the roughly 1,350 shares it had held in the company since July last year, the data show. The moves mean JPMorgan, which had held 0.04% in ACC, now has no further exposure to any parts of the Adani conglomerate via ESG funds, according to Bloomberg data.

Both funds are registered as Article 8, which under EU rules means they’re required to “promote” ESG goals. JPMorgan continues to hold Adani stocks in non-ESG funds.

Adani Group stocks have remained under pressure after a January 24 report by short-seller Hindenburg Research, which alleged the conglomerate was guilty of fraud and market manipulation. The Adani Group has rejected the claims and hired lawyers and communications specialists in an effort to resurrect its image.

All the ten listed firms have together lost ₹12.37 lakh crore ( ₹12,37,891.56 crore) in market valuation since the US short-seller came out with its report on January 24. The group’s combined market capitalisation is now at ₹6.81 lakh crore, down from ₹19.19 lakh crore on January 24. The conglomerate’s business interests span from sea-ports to airports, edible oil and commodities, energy, and cement to data centres.

On the other hand, another global index provider MSCI has made no changes to the ESG ratings of Adani companies since the Hindenburg report. Adani Total Gas Ltd. and Adani Green Energy Ltd. both hold an A rating. Three entities — Adani Enterprises Ltd., Adani Power Ltd. and Adani Ports & Special Economic Zone Ltd. — hold MSCI’s lowest ESG rating, CCC.

(With inputs from Bloomberg)