The 2017 report on the Grenfell tower fire, which led to the death of 72 people, incredibly criticises insulation titan, Kingspan. The report highlights that Kingspan was deliberately manufacturing a deceptive market in insulation for structures that are more than 18m tall. It adds that the company heartlessly took advantage of the construction industry’s meagre understanding of the fire safety tests for insulation and cladding. The study uses downright language, including terms like “deceitful strategies”, “deep-rooted continuous dishonesty”, and an “absolute neglect of fire safety”.
In a defensive response, Kingspan accepted the completely intolerable historical shortcomings of its UK insulation division, but was firm in saying these failings are not a depiction of the company’s conduct, neither before nor now. Bill Neely, a seasoned Northern Irish broadcaster and ex-member of ITN and NBC, declared this rebuttal as “astoundingly oblivious”. However, this seemingly did not impact investors.
It is vital to note that, despite the criticism, the share value of Kingspan remained unaffected by the report. Since the disastrous Grenfell fire in June 2017, the stocks of the company have seen a 150 per cent rise, giving it a total value of €13.75 billion. Kingspan also holds a proud environmental, governance and social (ESG) score from Sustainalytics, placing it as a low-risk entity amongst its industry contemporaries.
However, the Grenfell tragedy seems like old news to investors, yet Kingspan’s defensive statement does reflect its likely concern about potential future legal implications. This is especially considering the dreadful impact of the disaster.