Bank of England Covid Corporate Financing Facility (CCFF)

The CCFF (COVID Corporate Financing Facility) was announced by Rishi Sunak as part of the COVID-19 financial support package for businesses alongside the Coronavirus Business Interruption Loan Scheme and the Coronavirus Large Business Interruption Loan Scheme.

Designed to support the largest companies who provide a material benefit to the UK and which were at least investment grade as of 1 March 2020, companies also needed to demonstrate that they were financially sound prior to the COVID-19 pandemic. CCFF is a committed Commercial Paper (CP) purchase facility provided by the Bank of England; companies that operate in the financial sector exclusively are not eligible.

The amounts issued to a company along with the amounts outstanding to the Bank of England is disclosed publicly each week. The issuance is repayable over a one year period with a discount of effectively 0.2%, 0.4% or 0.6% depending on the short term rating of the company. If the company doesn’t repay the issuance on time they will need to provide a letter ‘showing restraint’ on paying dividends and other capital distributions and on senior pay. You can read more about CCFF directly from the Bank of England's website.

What have we done with the CCFF data?

We matched this public disclosure with the sustainability data generated using our own proprietary software, verified by our analysts to provide a complete disclosure, including up to date stock and financial statistics both provided from trusted 3rd party sources at Google Finance, Yahoo Finance, Bloomberg, Companies House (GOV.UK), Endole, Standard & Poor's, World Benchmarking Alliance and Trading View.

This has resulted in the creation of the AG data card. Each card is designed to provide a visual representation of a company's CCFF issuance, financial, environmental and social public disclosure. Think of it as ‘Top Trumps card game’ but for company disclosure.

As these companies are utilising public funding we felt that it was important to highlight their financial and sustainability reporting. As we move towards building a greener, more sustainable future economy we wanted to highlight how our biggest companies are disclosing their commitment to creating a more resilient economy. We are working closely with financial institutions, researchers and academics to encourage companies using public funds to provide full disclosure.

The study was originally designed to provide an outline of the disclosure landscape. This was backed by our wider effort to increase transparency and encourage greater accountability. Companies who provide full financial and ethical disclosure are signified with the green line. We hope to be adding the green line to all the companies who have been issued CP via the CCFF scheme in the coming weeks and months.

CCFF Cards

How can I use the study?

We encourage the use of our research in the creation of news reports, research publications and content across the social media landscape. In addition, our PRO access plan is a great tool for investors, analysts and risk managers who require detailed and accurate data. Our research aims to inspire informed debate and kick start our efforts to build back better in alignment with the United Nations Sustainable Development Goals. Our CEO and founder, Alexander said “If we are to achieve our ambitions of creating a sustainable economy, we need our best minds working on the problem and they need access to the information that enables them to experiment and create solutions. Full disclosure is a vital part of that.”

How long will the CCFF Pro study last?

Our analysts have been tasked to continue researching and analysing the data surrounding the companies with CCFF issued until all the issuance has been repaid, after which, we will continue to track and monitor the sustainability of disclosure of companies around the world. This is just the beginning.

What is currently being disclosed inside CCFF Pro?

We are measuring 74 individual metrics about each company culminating in the delivery of information on general company statistics, financial performance, greenhouse gas carbon emissions (scope 1 and scope 2), direct energy consumption, direct water consumption, total waste and recycled waste. All environmental indicators are measured from location based data where possible.

General company statistics and financial performance are provided by 3rd parties and verified by our team of analysts.

Sustainability data is curated using our proprietary software using machine learning and artificial intelligence to pinpoint the source of the data within publicly disclosed documentation before it is analysed and converted into comparable units of measurement.

This enables us to provide differential values for the 2018 and 2019 financial year of reporting so that, from a glance, each company's performance in any individual or set of metrics can be reviewed.

We recognise that this means that the CP issued to companies has taken place after their reporting period on the environment. Our study is going to continue throughout the next reporting period and will include the 2020 reporting data once it becomes available. We hope to highlight the improved ethical performance of the companies who have been issued CP through the CCFF and will provide insights and analysis as the wider data emerges.

We have also incorporated social disclosure into our study. This highlights board diversity, average employee total, alignment to the SDGs and alignment to standards, regulations and initiatives. We are also tracking large scale redundancies and taxation information as part of our insights. We aligned the SDGs to companies utilizing the World Benchmarking Alliance SDG to industry map. The map connects SDGs deemed directly relevant to specific industries using the MSCI Global Industry Classification Standard. This enabled us to match companies to their correct GICS and therefore assign the matching SDGs. If the company provided disclosure on projects or operations that specifically and directly linked their impact to the goals we have linked that activity to the goal on the card. Where companies have not linked activity to the goals the goal is still present on the card, but it is faded out. We have also recognised the Carbon Disclosure Project (CDP) and listed whether a company has achieved A, B, C, D or F for carbon, forestry and water.

The remaining 3 badges, display whether the company has compiled a GRI report, are a participant of the UN Global Compact or have committed to Science Based Targets. Further, more detailed information on these standards can be found in the PRO access plan.

CCFF Exploded Cards

    Why did we select these metrics?

    It was important to our team to ensure that the brands were easily recognisable and that the companies who have exercised CP from the CCFF scheme could be quickly found. From this point, we wanted to highlight the CCFF issuance values and align it to the company's financial performance. If the company is publicly traded we have used stock market performance data in addition to revenue, net income and debt to assets amongst other metrics.

    We choose to focus on 4 key environmental aspects, whilst not an exhaustive approach to the environmental sustainability of these companies, we choose carbon emissions, energy, water and waste as prevailing headlines. Each organisation’s carbon emissions data is calculated by combining their scope 1 and scope 2 totals where they have been published whilst also providing the differential between the 2017/2018 and 2018/2019 financial year totals by percentage. The same differential percentage is available for total energy consumption, total water consumption, total waste produced and the amount of waste recycled.

    Crucially we aren’t suggesting that increasing the amount of waste sent to be recycled as the way forwards, in fact, reducing total waste and reducing the amount of hazardous waste are just as important as reducing what amount of waste goes to landfill. Equally, there are many strategies for improving waste management towards an equitable circular economy. In our data, we selected recycling as it is a readily available metric.

    Our social card highlights gender diversity at the board by percentage and includes whether the company has increased or decreased gender diversity across the two reporting years. In the top right corner of the board diversity card we have included which financial year the data is for and in the top left corner whether the company has increased or decreased diversity by percentage. The social cards also include the average number of employees at the company over the latest reporting period. A red down arrow is placed next to these figures if the company has announced plans for large scale redundancies in the next reporting period. Detailed information, including sources and specific job redundancies numbers can be found inside the PRO access. We wanted to highlight these two areas due to their relationship with good governance and social responsibility.

    We also recognise that some companies have grown and scaled up their operations which means that they may have used more resources to do so. This is why we have provided comparative financial and when available company statistics for the same period. Links back to the original source documentation and public disclosure content is available for every item of data on our cards and via PRO access.

    What is CCFF PRO access?

    For academics, journalists, writers, influencers, investors, analysts and leaders around the world, we have created PRO, providing comprehensive access to the entire raw dataset produced directly from our central repository updated by our analysts in real time. This enables you to generate your own datasets for research, content creation and more, we’re really excited to see what you can come up with. Special PRO features to our CCFF study include:

    - Access all filters to create your own data tables

    - Compare performance side by side

    - Export custom tables

    - Receive live and up to the minute updates

    - Read custom detailed insights from our analysts and the community

    For companies listed on the dataset, we provide a contribute facility that enables you to add data to our system for public disclosure.

    Content created using our study must be attributed to AG including a link to our website as a reference source. All publicly distributed content you create is listed for other PRO access members to read increasing your coverage to other sustainability experts in the process.

    Can I sponsor the CCFF study?

    Yes, whilst we won’t display any adverts, we are open to working with sponsors who wish to support our study. You can contact our CCFF study team here for more information about sponsorship rates.

    We have exciting plans ahead for the study including a raft of thought-provoking articles and increased depth and detail of data too. We will post updates regularly, below is a basic timeline of what has happened so far.

  • 4th June - CCFF First dataset issued by the Bank of England
  • 5th June - AG Launches CCFF data cards
  • 9th June - AG adds detailed sustainability data
  • 10th June - AG adds live financial data
  • 11th June - AG opens the study for re-distribution
  • 11th June - CCFF Second dataset issued by the Bank of England
  • 12th June - Latest CCFF data added to the cards
  • 16th June - AG adds job redundancies data to PRO Access
  • 16th June - AG adds list of possible future organisations to PRO Access
  • 19th June - Latest CCFF data added to the cards
  • 24th June - AG adds detailed social data
  • 25th June - Latest CCFF data added to the cards
  • 2nd July - Latest CCFF data added to the cards
  • 8th July - AG adds lobbying data to PRO Access
  • 9th July - Latest CCFF data added to the cards
  • 16th July - Latest CCFF data added to the cards
  • 23rd July - Latest CCFF data added to the cards
  • 24th July - AG adds salary bandings data for housing associations to PRO Access
  • 30th July - Latest CCFF data added to the cards
  • 6th August - Latest CCFF data added to the cards
  • 6th August - AG adds annual comparison of carbon emissions to revenue via PRO Access
  • 13th August - Latest CCFF data added to the cards
  • Credit Ratings

    You asked, we listened. By popular demand we have included where available publicly disclosed company credit ratings from Standard & Poor's.

    As a prerequisite in order to access the CCFF, companies are required to be of investment grade and where available, a credit rating of A-3 / P-3 / F-3 / R3 from at least one of Standard & Poor’s, Moody’s, Fitch and DBRS Morningstar as at 1 March 2020. We have included these tables below to the long term and short term credit ratings issued by Standard & Poor's.

CCFF Screenshot
CCFF Screenshot 2

Tags

CCFF, Data, Disclosure, Performance, Sustainability


Leave a Reply

Your email address will not be published. Required fields are marked

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}