This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
The FCA’s SDR requirements were introduced by the regulator in November 2023 , aimed at helping investors assess the sustainability attributes of investment products, and to avoid greenwashing risk, to portfolio managers. The firm added that it is reviewing opportunities for further SDR label adoption in its fund range.
Anna ODonoghue, Global Head of Product Development and Governance, Schroders, said: We believe we are the first firm to publicly confirm the intended adoption of all four SDR labels across all the funds we have sought them for.
As the theme broadens out even further, these companies leading emissions intensity reduction efforts in their industries could benefit from a first mover advantage as the lowcarbon materials market develops.
Global issuance of labelled sustainable bonds including green, social, sustainability, sustainability-linked, and transition bonds is anticipated to again reach around $1 trillion in 2025, according to a new forecast released by Moodys Ratings, as headwinds including political changes from the new U.S.
The focus on sustainability has greatly increased in recent years, and ambitious climate and environmental goals have been set at European and international levels. ESG finance is growing in importance precisely because it makes a key contribution to achieving these goals toward more sustainabledevelopment models.
According to The Corporate Sustainability Reporting Directive (CSRD) requirements , it is mandated for organizations to conduct a double materiality assessment, which in turn helps them determine which sustainability issues are material and should be included in their emissions reporting.
Investor demand for green, social, sustainability, sustainability-linked and transition bonds (GSS+) has surged in H1 2023, with regulatory developments bringing greater transparency and confidence to the market. Linklaters forecasts record year for green bonds, while SLB issuance suffers Q2 slowdown.
Issuance volumes of green, social, sustainability and sustainability-linked (GSSS) bonds rebounded strongly in Q1 2023, resuming double-digit growth trends after falling 18% in 2022, according to a new report from Moody’s Investors Service.
While challenges for the still-developing SLB market persist, Moody’s notes that the quality of sustainability-linked bonds has been improving, and finds that new issuers continue to support the market, representing around two-thirds of issuers in 2023, compared to only around 31% of other GSSS bond types.
Separate from the US$100 billion per annum in climate finance pledged by rich countries, the Loss and Damage Fund was the surprise hit of COP27 , agreed with the aim of compensating the developing countries most at risk from the physical impacts of climate change already ‘locked in’. Let’s hope it’s not just more hot air.
Protected status for ESG investment products could mark the beginning of the end for greenwashing for UK investors. Before long, any asset manager thinking of slapping a ‘sustainable’ or ‘ESG’ label on its investment products for UK clients should think twice – at least. It thinks there is a problem about greenwashing.”.
Developed countries have belatedly reached a target for climate finance, only to be set a new one for nature. Developed nations mobilised US$115.9 billion of climate finance for developing countries in 2022, it was revealed this week, exceeding for the first time the US$100 billion annual level set in Copenhagen in 2009.
In an oversubscribed market, greater opportunities for investors lie in social, sustainable, SLBs and blue bonds. SLBs have previously been accused of acting as a “platform for greenwashing”, with the proceeds not specifically having to be used for sustainable causes as is the case with green bonds.
And most importantly, are they focusing on the right aspects of packaging sustainability? Considerations for Sustainable Packaging Solutions. Driven by these developments, recyclability and the carbon footprint of packaging are drawing increasing attention.
Concerns over greenwashing have accelerated efforts by regulators and standard setters to develop and introduce more robust forms of disclosure and measurement to the burgeoning ESG investing market, he suggests. To date, Chile and Uruguay are the only sovereigns to have launched SLBs.
Sovereigns have been relatively late entrants to sustainable bond markets following corporates and supra-national entities (such as the World Bank and the European Bank for Reconstruction and Development), which issued the first green debt securities in the mid-2000s. We expect continued growth and diversification in this sector.
Advisory group urges the government to focus on “drafting efficiency” when developing criteria, while following the science. The UK’s Green Taxonomy must address challenges unearthed during the development of the EU taxonomy and streamline its do no significant harm (DNSH) criteria, according to the Green Technical Advisory Group (GTAG).
Ashok Parameswaran, President of the Emerging Markets Investors Alliance, highlights the challenges of achieving environmental and social impact via emerging markets bonds. There’s a lot of greenwashing, and there are really weak standards in terms of additionality, materiality, accountability and transparency.”. Weak frameworks.
Combined, the regulation is designed to help European asset owners understand, compare and measure the sustainability characteristics of investment funds, limiting their exposure to greenwashing. . “We This can include deployment of on-site renewable energy, building renovation, and the development of energy efficiency equipment.
Moody’s cited challenges including short-term post-pandemic support for businesses and households, long-term sustainabledevelopment challenges, including climate risk mitigation, and gradual, uneven recovery in revenue streams. Developing economies globally need to invest as much as US$4.5 trillion) to reach the goals.
The legislation being introduced in Europe and the UK lends significantly more permanence to sustainable investing,” he said. The irony is that the US SEC, while a comparative laggard on regulation, is proving to be tougher on greenwashing through old-fashioned mis-selling rules,” said Mitchell. COP26 revisited.
To take one UK-based example, when FTSE4Good was launched in 2001, a pioneering benchmark for socially responsible investing (SRI), the focus was on carbon emissions. A linked question is whether the large number of indices could provide cover for greenwashing by unscrupulous businesses or asset managers.
Richard Hardyment, Head of Engagement at the Institute of Business Ethics, calls for a revolution in the mechanics of measurement to realise sustainable finance’s potential. There are accusations of greenwashing from one side, ‘wokeism’ from another, and a lingering question on everyone’s lips: is it making a difference?
Once the details are known, corporates can ramp up their efforts to meet their new disclosure requirements and develop the underlying programmes and policies to support them. Curbing greenwashing. But the political context means there is likely to be a greater period of uncertainty and adjustment than normally follows a new rule.
The latter, which just marked its tenth anniversary, is a set of voluntary frameworks that seek to promote the role of global debt capital markets in financing progress towards environmental and socialsustainability.
We organize all of the trending information in your field so you don't have to. Join 5,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content