Big bond issuers assess banks' ESG scores, potentially avoiding underwriters with low ratings.

Big bond issuers are quietly evaluating banks' ESG credentials, and may avoid underwriters with poor environmental, social, and governance scores. Issuers can de-select banks that are not aligned with their ESG goals, threatening their fees, which are the purest form of profit for bankers. KfW, a German development bank with $100bn 2024 funding plans, raised concerns about a low ESG score at Barclays.