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Taxonomy-aligned capital expenditures (capex) from large listed European companies grew 34% in 2023, reaching 250 billion (US$271 billion) by year end, according to a new report from the Platform on Sustainable Finance (PSF). Outstanding green loans stood at 908 billion in 2023 while green bond volumes reached 781 billion.
The EU Taxonomy is part of the EU Action Plan on Sustainable Finance, establishing a classification system enabling the categorization of economic activities that play key roles in contributing to at least one of six defined environmental objectives, and that Do No Significant Harm (DNSH) to the other objectives.in
And it is just the beginning,” said Guterres, on the same day that scientists announced that July 2023 was tracking to be the hottest month ever recorded in human history. “It FinanceMap’s 2023 report analyzed $16.5 times higher exposure to greeninvestments than the average asset manager. Climate change is here.
Back then, the government was tasked with reworking its strategy within eight months. The CBDP was subsequently unveiled in March 2023 – but the three challengers still did not think the strategy met minimum legal standards. As such, they decided to take the government back to court in February this year. trillion (US$1.89
With ESMA flagging a tripling in the size of the SDG fund market between 2020 and 2023, impact-washing is also in their sights. billion) greeninvestment pledge. Regulators are already pushing back against the risk of greenwashing with a range of fund disclosure , naming and labelling rules.
Sustainableinvesting assets in the United States have plunged by more than half to US$8.4 trillion at the end of 2019, according to a new report from the US Forum for Sustainable and Responsible Investment (US SIF). Sustainableinvesting assets skyrocket post 2014. trillion at the end of 2021 from US$17.1
The UK’s Financial Conduct Authority (FCA) will closely monitor funds’ use of incoming greeninvestment labels, potentially stopping asset managers from using them in the event of misuse. . Smaller FCA-regulated firms are expected to have to do the same from early 2023. . International, not isolated .
The EU Green Taxonomy is one of the cornerstones of the EU Action Plan on financing sustainable growth and is also the foundation of many other pieces of legislation currently being implemented. The CSRD has already been adopted and will kick in from reporting year 2024.
Corporate Knights Global 100 ranking of the worlds most sustainable firms, now in its 21st year, shows that the top firms continue to increase their investment in the green transition. Were finding that growth in sustainable revenues is outpacing all other revenues, says Toby Heaps, co-founder and CEO of Corporate Knights.
Skip to ranking BY Shawn McCarthy January 17, 2024 As 2023 came to a close, the World Meteorological Organization declared it to be the hottest year on record. In the 2024 Global 100 ranking, the top-ranked firms allocated 55% of their investments to sustainable projects, up from 47% the year prior.
A European green taxonomy The European Union has produced a green taxonomy that mostly excludes fossil fuel projects from the sustainability label, though it controversially includes some natural gas uses and nuclear as “sustainable” investments.
Article 8 funds promote “environmental and/or social characteristics”, while Article 9 refers to products that have a sustainableinvestment objective; all holdings within a fund must be sustainableinvestments that meet the standard of “do no significant harm”.
The announcement marks a win for the UK’s Sunak government, which has set goals to establish itself as a hub for sustainableinvestment, but has come under fire for not sufficiently responding to the clean energy and industry packages launched by other major economies the U.S.
Tim Day, Investment Fund Manager at Trina Solar, explains the importance of Europe’s sustainableinvestment community in the growth of solar power. EU regulation goes hand in hand with a decade-long trend of increased focus on greeninvestment in the EU.
In its semi-annual Trends, Risks and Vulnerabilities (TRV) report, ESMA notes the need for “significant public and private sector financing” to achieve the EU Green Deal objectives and support the green transformation of the economy. leading to increasing caution towards ESG investing and shareholder engagement.
times more equity value in fossil fuel production companies (US$880 billion) than in greeninvestments (US$309 billion). Greeninvestments were calculated according to the criteria of the EU taxonomy. trillion of the assessed asset managers’ equity fund portfolios, the report found that managers hold 2.8
However, she noted that the success of such plans will be determined by the levels of investment the government must mobilise, noting that the international environment for greeninvestment is becoming “more competitive”, as other countries begin to put their transition plans into action. US President Joe Biden’s Inflation Reduction Act – which (..)
This turnabout has been most pronounced in the green bond market, where power utilities have, controversially, been adding nuclear energy as an option for green bonds. Is the nuclear industry using a smokescreen of net-zero to cover up its sustainability problems?
This is the view of experts speaking to ESG Investor in response to Chancellor Jeremy Hunt’s 2023 Autumn Statement on 22 November, which many investors had hoped would increase certainty around the government’s climate policy ambitions following months of u-turns and rollbacks.
Canada is lagging in its efforts to drive private capital into sustainableinvestments to finance solutions on climate change and other environmental challenges. We are interested in sustainability not because we are environmentalists, but because we are capitalists and fiduciaries to our clients.” Who said that?
These regulatory moves are necessary for China to compete on the international stage on ESG, according to Dr Guo Peiyuan, Chairman of SynTao Green Finance, the founding organisation of China SustainableInvestment Forum (ChinaSIF). It is going to establish an office in Beijing in mid 2023,” says Peiyuan.
In her confirmation hearing on Wednesday, Albuquerque expressed her position that the EU’s Sustainable Finance Disclosure Regulation (SFDR) could more effectively address greenwashing risk with the introduction of a labelling regime that communicated clearly the sustainability attributes of investment products.
This surrender was part of a wider pullback, as banks, investment funds and asset owners axed billions of dollars from sustainableinvestment funds and reined in marketing excesses. More than US$8 trillion removed from sustainableinvestment tally. sustainableinvestment, to US$8.4 greeninvestment.
This week, green and blue debt were in focus around the world, while the US courted further climate controversy. New peaks – Green bonds and other sustainability-related instruments demonstrated their resilience this week. The act also kickstarted an era of greeninvestment competition.
The latest benchmark report from PwC Luxembourg reflects a challenging year for sustainableinvestment in Europe, but suggests asset owners are becoming more sophisticated and selective in their approach. of the total AUM of Sustainable Finance Disclosure Regulation (SFDR) Article 8 funds and 60.8% billion in H2 2023.
For example, recent research from the Institute of Energy Economics and Financial Analysis (IEFFA) found that in 2023 alone, EU companies invested 249 billion (US$259 billion) in EU taxonomy-aligned activities. Another milestone Not everyone is convinced.
“It’s an unparalleled and historic piece of climate legislation that’s likely to be a significant catalyst for driving investment into the country’s [net zero] transition for years to come,” says Nikita Singhal, Co-Head of SustainableInvestment and ESG at Lazard Asset Management.
And expect the Trump administration to reverse a Biden Department of Labor rule expressly permitting pension trustees to consider ESG issues in investment decisions. But on climate disclosure and fiduciary rights, this will create regulatory confusion more than a firm barrier to sustainableinvesting.
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