S&P DOW JONES INDICES — Announced the launch of the S&P Biodiversity Indices, including the S&P 500 Biodiversity Index and the S&P Global LargeMidCap Biodiversity Index, which will measure the performance of a subset of equity securities from the S&P 500 and Global LargeMidCap indices. Constituents will be selected to align with environmental and biodiversity objectives. (March 2024)

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AXA INVESTMENT MANAGERS — Announced changes in its Corporate Governance & Voting Policy, including voting against relevant resolutions at the highest emitting companies that fail to appropriately report on their climate lobbying activities. AXA IM will also seek disclosure of potential climate lobbying activities to ensure consistency between publicly stated goals and corporate lobbying. (Feb 2024)

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BROOKFIELD ASSET MANAGEMENT — Raised $10 billion at the first close for its second Brookfield Global Transition Fund. The fund will continue investing in expanding clean energy, accelerating sustainable solutions, and transforming companies operating in carbon-intensive sectors to make more sustainable business models. Fundraising is expected to conclude in Q3 of 2024. (Feb 2024)

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KEPPEL — This global asset manager launched a Sustainability-Linked Financing Framework, further integrating sustainability into its financing strategy. This includes reducing absolute Scope 1 and 2 emissions by 50% by 2030 (baseline 2020), and growing its renewable energy asset portfolio to 7 GW by 2030. Keppel also secured $747 million of sustainability-linked revolving credit facilities. (Jan 2024)

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HSBC — Launched its first Net Zero Transition Plan, after setting a target for Net Zero by 2050 in 2020. The plan details HSBC’s vision and strategic approach; specific transitions in key economic sectors (e.g. energy, automotives, aviation, and cement); and provides details on implementation across key areas of the company. (Jan 2024)

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BNP Paribas Asset Management — Released its new Global Sustainability Strategy, setting out its strategic approach to integrate sustainability into its investment decisions for the 2023-2025 period. The new strategy focuses on three key themes (3Es): Energy transition; healthy Ecosystems; and greater Equality. This includes aligning its investments in power generation with below 2°C; updating its forest and water analyses, promoting nature-based solutions, and establishing a future forestry fund; and incorporating enhanced social indicators into ESG scoring models. (Jan 2024)

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NORGES BANK INVESTMENT MANAGEMENT (NBIM) — Released a document laying out stricter expectations for management of climate risk by companies it invests in, telling boards to move from target setting to transition planning. The Norwegian $1.4 trillion sovereign wealth fund holds stakes in 9,200 companies. The statement covered expectations regarding board oversight, climate risk disclosures, greenhouse gas reporting, net-zero 2050 commitments, interim targets, and transition plans. (Sept 2023)

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BLACKROCK / SGX GROUP — Announced the launch of an exchange-traded fund (ETF) that offers investments in best-in-class companies committed to reducing carbon emissions. The iShares MSCI Asia ex-Japan Climate Action ETF launches with assets under management of $426 million, making it the largest-ever equity ETF launched in Singapore. (Sept 2023)

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32 investors, representing $7.3 trillion in combined assets under management signed a statement calling on G20 finance ministers to align agricultural support with climate and nature goals by 2030, citing the material financial risk to portfolios if the goals are not achieved. The statement, an engagement under the FAIRR Initiative investor network, calls for the repurposing of agricultural subsidies (which make up 15% of total agricultural production value globally) to align with government, multilateral, and private sector commitments to transition to net zero and protect and restore nature by 2050. It asks finance ministers to 1) link financial support with environmental obligations; 2) shift current incentives away from the production of climate- and nature- damaging agricultural products and to sustainable agriculture;3) shift subsidies away from production of high emissions products like dairy and red meat; and 4) increase funding for workers affected by reforms. (Aug 2023)

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BLACKSTONE — Announced it had raised $7.1 billion at the final close of its energy transition credit fund, making it the largest energy transition private credit fund ever raised, according to Blackstone. The fund, the Blackstone Green Private Credit Fund III (BGREEN III), will provide credit to the renewable energy, infrastructure, and energy transition marketplace. (Aug 2023)

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BLACKROCK — Is partnering with the government of New Zealand to launch a NZ$2 billion ($1.2 billion) net zero fund investing in the country’s renewable energy and climate infrastructure. New Zealand noted that this will support the country’s ambition to be the first country in the world to achieve the 100% renewable energy target (by 2030, up from its current 83%). According to BlackRock, this fund is the firm’s largest single country decarbonization-focused project to date. (Aug 2023)

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MIZUHO — The Tokyo-based banking and financial services company announced a goal of facilitating $700 billion in sustainable finance between 2019 – 2030, including $350 billion in environment and climate change-related finance. The goal is a substantial increase from its original goal of $175 billion in sustainable finance, initially set in 2020. (July 2023)

LGIM — Legal & General Investment Management (LGIM), one of Europe’s largest asset managers, released the results of its annual engagement program to encourage companies to address climate change. As part of this, LGIM conducted more targeted and direct engagements with 105 “dial mover” companies (up from 60 in 2021) asking them for several commitments including comprehensive, certified net-zero emissions targets. LGIM will apply voting sanctions to 43 of these dial movers, including 12 that remain on its divestment list. (June 2023)

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Climate Action 100+ — This investor-led climate change engagement initiative, made up of more than 700 investment firms managing $68 trillion in assets, announced its second phase. This new phase, running until 2030, aims to inspire a “global scale up in active ownership,” shifting focus from corporate climate-related disclosure to the implementation of corporate climate transition plans. Specifically, Climate Action 100+ will encourage its signatories to ask companies to (1) implement a strong governance framework, articulating the board’s accountability and oversight of climate risk; (2) take action to reduce emissions across their value chains; and (3) provide enhanced corporate disclosure on and implement transition plans to deliver on robust targets. (June 2023)

VBDO — 185 investors with $10 trillion in combined assets signed a statement demanding companies adopt a more radical approach to reduce their reliance on plastics. The investors, coordinated by the Dutch Association of Investors for Sustainable Development (VBDO), are calling for intensive users of plastic packaging in the fast-moving consumer goods and grocery retail sectors to: act more quickly to reduce single-use plastics and implement reuse systems for packaging; reduce harmful chemicals in packaging; and advocate for, rather than against, policies supporting these actions. The letter warns that failure to address plastic pollution will expose companies to financial risks from litigation, regulation, taxation, and raw material costs. (May 2023)

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APOLLO GLOBAL MANAGEMENT — The global alternative investment manager launched Apollo Clean Transition (ACT) Capital, a $4 billion investment strategy to help finance corporate clean energy transitions and climate solutions. ACT Capital is part of Apollo’s ambition to deploy $50 billion in clean energy and climate capital by 2027 and $100 billion by 2030. (May 2023)

MITSUBISHI UFG (MUFG) — Announced emissions reduction targets for lending to the steel, shipping, and real estate sectors. For steel, MUFG announced a target of a 22% emissions reduction compared with 2019. For shipping, the bank aims to halve emissions from a 2008 baseline (in line with the International Maritime Organization’s target). For commercial real estate, MUFG is aiming for a 44-47 kg of CO2 equivalent per square meter by 2030, down from 65 kgCO2e/m2, and for residential it is aiming for 23 kgCO2e/m2, down from 27kgCO2e/m2. (April 2023)

AXA IM — Active asset manager AXA IM announced that its engagement activity with investee companies more than doubled in 2022, to 596 engagements. Some 76% of these were linked to the United Nations’ Sustainable Development Goals, according to the firm’s Stewardship Report 2022. Climate change was the focus of 28% of engagements. Biodiversity accounted for 18%, a sharp increase for that category, and supported by the company’s integration of new biodiversity-specific data and publication of a new biodiversity footprint metric. In 2022, AXA IM also increased discussions held at the senior executive or board-level, to 178 engagements, from 71 in 2021. The company expects engagement to increase further in 2023. (April 2023)

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Net-Zero Asset Owner Alliance — Released its Position on the Oil and Gas Sector, new guidance for alliance members regarding their approach to the oil and gas sector, aligning them with credible 1.5°C pathways. This includes over 20 expectations, including calling for the halting of direct funding of any new investments in oil and gas fields; limiting pipeline investments to brownfields; and no new investments in oil-fired power generation or gas-fired generation or hydrogen production without carbon capture, utilization, and storage. The guidance “strongly cautions against investment in long-lived assets that are likely to become stranded in a 1.5°C-aligned transition.” Oil and gas producers and companies in intensive fossil fuel-using sectors are also expected to set science-based, absolute- and intensity-based emissions targets that cover Scope 1, 2, and 3 emissions, in line with science-based, no- or limited-overshoot, 1.5°C-aligned pathways, and align lobbying with company climate goals and science-based targets. (April 2023)

Net Zero Engagement Initiative (NZEI) — The Institutional Investors Group on Climate Change (IIGCC) launched NZEI, starting with 93 investors, to scale and accelerate climate-related corporate engagement. The initiative aims to support investors in aligning more of their investment portfolios with the goals of the Paris Agreement. NZEI began with these investors sending letters to 107 companies, outlining their expectations for a net zero transition plan (including commitment, targets, performance tracking, and a credible decarbonization strategy). IIGCC also created new guidance, “Investor expectations of corporate transition plans: From A to Zero” to help companies understand and respond to investor requests. (April 2023)

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SHAREACTION — Investors with over $4 trillion in assets under management issued a statement to Europe’s 13 largest chemical companies urging they set a path to transition away from fossil fuels. Specifically the letter asked companies to set out short, medium, and long-term plans to electrify chemical production processes, switch to renewables, and change their feedstocks to emissions-neutral materials. The statement also urged companies to commit to capital expenditure plans and set scope 3 targets aligned with a 1.5°C pathway, and phase out woody biomass from direct and indirect energy generation. (March 2023)

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ALLIANZ GLOBAL INVESTORS — Active investment manager AllianzGI published its annual analysis of how it voted in more than 100,000 shareholder and management proposals. The largest focus was compensation for management teams, with AllianzGI voting against 43% of compensation-related resolutions. It also supported 70 of 87 shareholder proposals on climate. The investor also noted that, moving forward, it will hold directors accountable if the company does not have net zero targets in place and credible strategies to achieve them. (Feb 2023)

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SHAREACTION — 30 investment companies, coordinated by ShareAction and representing over US$1.5 trillion in assets under management, wrote a letter to one or more of five banks (with 20 investors writing to all five), urging the banks to stop directly financing new oil and gas fields by the end of this year. The investors warned the banks, which included Barclays, BNP Paribas, Crédit Agricole, Deutsche Bank, and Societe Generale, that new oil and gas fields jeopardize the path to net-zero and are impeding the renewable energy transition, and that the banks will face increasing pressure if they do not act soon to reverse their financing of new oil and gas projects. (Feb 2023)

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AVIVA — In its annual letter to chairs of companies, Aviva Investors outlined sustainability-focused expectations for its approximately 1,600 portfolio companies, including tackling the cost-of-living crisis, transitioning to a low-carbon economy, and reversing nature loss. Aviva noted it expected all companies to develop and publish robust and financially viable climate transition plans, and begin reporting within a reasonable timeframe against the Taskforce on Nature-related Financial Disclosures (TNFD) framework. (Feb 2023)

Target Setting Protocol Third Edition (Net Zero Asset Owner Alliance (NZAOA)) — NZAOA released a significant update to its Target Setting Protocol. Key changes (Feb 2023):

Guides members to encourage investee companies to prioritize emission reductions and disallows the use of carbon removals to achieve intermediary emission targets that detract from these efforts (until at least 2030);
Formulates a methodology for direct private equity investments and requires members to start setting targets in 2023 and cover all new private equity assets by 2025;
Provides guidance on carbon accounting for sovereign debt;
Asks members to begin phasing in target-setting on new commercial real estate loans;
Explicitly asks members to consider Just Transition impacts — ensuring the benefits of the low carbon transition are widely and fairly shared — to their decarbonization targets. Members are also encouraged to focus on emerging markets when setting climate solutions investment targets, to address these markets' increased vulnerability to climate change and fewer resources to transition from fossil fuels.

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GOLDMAN SACHS ASSET MANAGEMENT — Announced it had raised $1.6 billion for its Horizons Environment & Climate Solutions fund. This is the company’s inaugural direct private markets strategy investing in climate and environmental solutions, specifically, clean energy, sustainable transportation, waste and materials, sustainable food and agriculture, and ecosystem services. The fund has already committed nearly $1 billion across 12 companies. (Jan 2023)

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GENERAL ATLANTIC — Equity firm, General Atlantic, announced the close of its BeyondNetZero fund. With the fund’s close, the firm has approximately $3.5 billion in capital to invest in climate solutions. This fund has so far invested $826 million in five companies combating climate change, through vertical farming, supply chain efficiencies, a recycling marketplace, solar energy, and sustainability analysis. (Jan 2023)
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PFAS Investors Coalition — 47 investors managing $8 trillion in assets wrote to the world’s largest chemical companies, 54 in total, urging them to phase out forever chemicals (PFAS). This is double the number of investors (and nearly twice the assets under management) as last year when a similar call was made by this campaign. Recognizing that regulations on PFAS could become stricter, the investors urged the chemical companies to be more transparent about their production of PFAS and create time-bound plans to phase out PFAS production. (Dec 2022)

STOREBRAND — Norwegian asset manager Storebrand strengthened its policy on nature, including adopting stricter rules for investing in sectors that include mining and energy. This includes no longer investing in companies that dispose of mining waste in rivers or the ocean, those involved with deep sea mining, and those that earn more than 5% of revenues from drilling in the Arctic. It will also expand its deforestation commitment to cocoa, rubber, coffee, and mining. Storebrand will also exclude companies that actively lobby against the UN Biodiversity Framework or other regulations related to nature. (Dec 2022)

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CREDIT SUISSE — Published its Climate Action Plan for its investment businesses, outlining actions to be taken by Credit Suisse Asset Management and Credits Suisse Wealth Management to achieve net-zero across their portfolios by 2050. This includes a target to reduce emissions intensity of listed equities and corporate bonds (totaling $237 billion) by 50% by 2030 from a 2019 baseline without using offsets. (Dec 2022)

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MORGAN STANLEY — Announced Morgan Stanley Investment Management has launched the 1GT growth-oriented private equity platform, which will focus on investing in companies in North America and Europe that will collectively avoid or remove one gigaton of CO2-equivalent emissions from the Earth’s atmosphere through 2050. Investments will focus on mobility, power, sustainable food and agriculture, and the circular economy. Half of the investment team’s incentive compensation will be tied to CO2 emissions avoidance/reduction. (Nov 2022)

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BLACKROCK — Created a new unit, Transition Capital, to invest in opportunities linked to the global shift to a low-carbon economy across asset classes and geographies. The unit will work with portfolio managers and BlackRock’s capital markets team to develop new investment strategies and funds and deepen the company’s research in the area. (Oct 2022)

The Glasgow Financial Alliance for Net Zero (GFANZ) have dismissed reports that banks are threatening to leave the alliance. After the UN-backed group, Race to Zero, proposed binding restrictions on fossil finance, some large banks have considered leaving GFANZ, according to Bloomberg reporting. While GFANZ and its subgroups are affiliated with Race to Zero, its seven sub-alliances are independent organizations with their own governance structures. In order to appease its members, GFANZ may eventually sever ties from Race to Zero, according to GFANZ advisory board member Jakob Thomae. (Oct 2022)

HSBC Asset Management (HSBC AM) — Announced a policy to phase out coal-fired power and thermal coal mining from its listed holdings by 2030 in the EU and OECD, and by 2040 globally. It will actively work with company boards to support the transition away from thermal coal and ultimately divest from those companies that fail to show credible transition plans. The policy is in line with the Net Zero Asset Managers initiative. Starting immediately HSBC AM will not participate in IPOs or primary fixed income financing by issuers engaged in thermal coal expansion. (Sept 2022)

BLACKROCK — Defended incorporating ESG factors into its investment decisions, writing to 19 Republican state attorneys general in a letter that climate change is a top concern for its clients and a key risk to consider in financial decisions. This is a response to the allegations by the attorneys general that the firm is pursuing a “climate agenda” at odds with generating investment returns. As BlackRock’s head of external affairs wrote in the letter, “Investors and companies that take a forward-looking position with respect to climate risk and its implications for the energy transition will generate better long-term financial outcomes.” (Sept 2022)

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FIFTH WALL — Venture capital firm Fifth Wall has raised $500 million for a first-of-its-kind fund that brings large-scale real estate owners and operators together to invest in the decarbonization of their industry. Real estate, which is estimated to account for about 40% of total global GHG emissions, is “the single-biggest lever we can turn on to mitigate climate change," said Fifth Wall co-founder Brendan Wallace. CEF member CBRE is among the firms who made initial commitments to the new Climate Fund, which will invest in companies specializing in software, hardware, renewable energy, energy storage, smart buildings, and carbon sequestration technologies that can help the property industry cut emissions. (July 2022)

Glasgow Financial Alliance for Net Zero (GFANZ) Asia-Pacific (APAC) Network — The Glasgow Financial Alliance for Net Zero (GFANZ), a coalition of more than 450 financial sector institutions spanning 45 countries that aims to “accelerate the world’s transition to net-zero greenhouse gas emissions by 2050,” announced the formation of a new Asia-Pacific (APAC) Network, the opening of its first APAC office, and the creation of a regional Advisory Board. The new network will be underpinned by global and regional partners and will leverage engagement with financial institutions and policymakers across the APAC region to ensure their feedback is reflected in its net zero work. The APAC Network intends to develop country chapters across the region to support local engagement and implementation and will launch additional regional networks in Africa and Latin America in the coming months. (June 2022)

FINANCE FOR BIODIVERSITY PLEDGE — Added 9 financial institutions to its list of signatories. Signers commit to "call on global leaders and commit to protecting and restoring biodiversity through their finance activities and investments," setting and disclosing science-based biodiversity targets and annually reporting on progress. The Pledge now has 98 total signatories representing nearly $15 trillion in assets across 17 countries. The next signing round will take place in September/October 2022. (June 2022)

VANGUARD — Released a progress report pursuant to its commitments under the Net Zero Asset Managers (NZAM) initiative, which it joined in March 2021. The report shows that (May 2022)v:

17% of the firm’s $1.7 trillion in actively managed assets is invested “in a manner that aligns with achieving net-zero emissions by 2050 or sooner.”
About 20% of its more than $5 trillion in equity index fund assets are invested in companies that have committed to net-zero targets, and another 56% have “some other form of emission reduction targets.”

Vanguard has not yet established any formal interim targets or timeline, drawing criticism from climate advocacy groups. (May 2022)

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GENERATION INVESTMENT MANAGEMENT — Launched the $1.7 billion Sustainable Solutions Fund IV, its fourth and largest growth equity fund. The sustainability-focused investment firm co-founded by Al Gore said the fund will invest in growth-stage businesses with proven technology and mission-driven management teams working on lowering waste and emissions, increasing financial inclusion, and making healthcare more accessible and effective. (May 2022)

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BLACKROCK — Announced it has secured more than $800 million in initial commitments toward its $1 billion target for the BlackRock Impact Opportunities Fund. The fund will offer a first of its kind “multi-alternatives” strategy to invest in businesses and projects owned, led by, or serving people of color, with a particular focus on Black, Latinx, and Native American communities in the United States. The fund is designed to “do well and do good,” improving economic outcomes for undercapitalized communities of color and generating positive returns for investors. Three investments have been completed to date. (May 2022)

BLACKROCK — Issued commentary to investors related to 2022 climate-related shareholder proposals, sharing their observation that proposals this year were “more prescriptive or constraining on companies and may not promote long-term shareholder value” and that as a result Blackrock was likely to support proportionately fewer this proxy season than in 2021, when the firm supported 47% of environmental and social shareholder proposals. The guidance document further described Blackrock’s approach to dialogue with companies regarding the energy transition, reinforcing their view that climate risk is investment risk, and confirming they would be unlikely to support the re-election of directors considered to be falling short on climate risk oversight. (May 2022)

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STATE STREET GLOBAL ADVISORS (SSGA) — Announced new interim goals focused on decarbonizing their portfolio as part of the firm’s net zero investment commitment. SSGA aims for (May 2022):

100% of portfolios in carbon-intensive sectors invested in assets that are either achieving net zero or aligned with net zero by 2040.
90% of financed emissions alignment with a net zero pathway or addressed through “engagement and stewardship actions” (as opposed to divestment) by 2030.
50% reduction in Scope 1 and Scope 2 financed emissions intensity at the portfolio level by 2030 (2019 baseline).

AXA INVESTMENT MANAGERS — Established a new voting policy that urges investee companies to factor in environmental and social issues. AXA, which oversees more than $964 billion in assets, will require companies exposed to climate issues to have a net-zero strategy. (April 2022)

BLACKSTONE — Blackstone’s private equity arm and credit arm will no longer invest in oil and gas exploration and production, according to Bloomberg. Its next energy fund, focused on the energy transition and seeking over $4 billion, also won’t support such investments, Bloomberg says. (Feb 2022)

APOLLO — Global asset manager Apollo announced a target to deploy $50 billion in climate and clean energy capital across its asset classes over the next five years and “sees the opportunity to deploy more than $100 billion by 2030.” In addition, the company committed to "[reducing] median carbon intensity by 15% over the projected hold period for new control investments in the Firm’s flagship strategy.” (Feb 2022)

MORNINGSTAR — Removed over 1,200 funds with an estimated $1.2 trillion in combined assets from its sustainable investment list, the majority of which were classified under Sustainable Finance Disclosure Regulation (SFDR) Article 8. The company removed funds using “light or ambiguous ESG language” and funds that “say they consider ESG factors in the investment process” but “don’t integrate them in a determinative way.” (Feb 2022)

NATWEST GROUP — Announced it would lend only to certain upstream oil and gas companies that 1) have a majority of their financed assets based in the U.K. and 2) report to NatWest Group the overall emissions of the assets they operate by year-end 2023 (starting January 1, 2022). The company also said it will no longer lend to or underwrite customers with over 15% of their activities in coal or without a “Credible Transition Plan” in line with the Paris Agreement. (Feb 2022)

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POLESTAR CAPITAL — The Dutch impact investment firm launched what it claims is the “biggest circular economy fund in Europe”: the Polestar Capital Circular Debt Fund (PCDF), which opened at $114 million and is expected to reach $457 million within a year. The fund will provide loans for Dutch circular economy projects with “potential to create systemic ecological impact” in the areas of carbon emissions, waste reduction, and the replacement of fossil fuels. (Feb 2022)

AVIVA INVESTORS — Will consider human rights and biodiversity factors alongside climate change and executive pay when choosing investments. It will increasingly vote against directors at companies that have a “high impact” on the planet but do little to combat it, and it may withdraw investment as a last resort or vote against executive pay plans. Aviva expects companies to (Jan 2022):

Tie executive bonus plans to "robust, stretching and externally validated sustainability targets" that are clearly linked to the company’s commercial strategy
Develop a climate transition plan, which those in higher-impact sectors “should present … for shareholder approval"
Make voluntary disclosures based on the ISSB’s forthcoming climate-related standards, with full compliance by 2024
Assess their human rights impact and take action to stop human rights harm

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BLACKROCK — Is launching two funds that meet the EU’s demanding Sustainable Finance Disclosure Regulation (SFDR) Article 9 classification: (1) The Climate Action Multi-Asset Fund, which aims to deliver a lower carbon-intensity score than its benchmark and include a year-on-year decarbonization rate; (2) and The Climate Action Equity Fund, which aims to identify companies that are “long-term, disruptive structural winners” in reducing GHG emissions. (Jan 2022)

The IIGCC—a group of over 370 investors representing over $57 trillion assets under management—wrote an open letter to EU member state representatives and MEPs calling for gas to be left out of the EU Taxonomy. Stephanie Pfeifer, CEO of IIGCC, says the inclusion of gas would hinder investors’ "ability to align their portfolios and investment with net zero … “[create] an unhelpful precedent and [muddy] the waters for investors looking to do the right thing.” (Jan 2022)

BLACKSTONE — Announced that Blackstone Infrastructure Partners is investing approximately $3 billion in Invenergy Renewables Holdings, which Blackstone says is the largest private renewable energy company in North America. The investment will accelerate Invenergy’s renewables development. (Jan 2022)
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BLACKROCK — Released its 2022 Investment Stewardship Policy Updates Summary, which emphasizes board diversity targets and climate risk disclosure for portfolio companies. For U.S. companies, boards should aspire for 30% diversity, including at least two female directors and one representing an underrepresented group. It will continue to push companies to disclose a net-zero-aligned business plan, including how their plans would be resilient amid global efforts to limit planetary warming to 1.5 °C. (Dec 2021)

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List of Investment News, 2021-2019 (PDF)

Banking

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MITSUBISHI UFJ FINANCIAL GROUP (MUFG) — Increased its Sustainable Finance Target from 35 trillion yen ($230 billion) to 100 trillion yen ($660 billion) (total for 2019-2030). MUFG also revised its environmental policy statement and its human rights policy statement (adding the need in both to address climate change among other issues), and also established a Sustainability Risk Office to manage sustainability-related risks across the Group. (April 2024)

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Net-Zero Banking Alliance (NZBA) — Members of the NZBA voted to adopt a new version of the Guidelines for Climate Target Setting for Banks, updating and reinforcing their climate commitments. Targets will now extend to include banks’ capital markets activities, which are some banks’ largest source of attributable greenhouse gas emissions. The guidelines also update technical language to reflect changes in practices, data, and methodologies over the past three years. The key principles, including achieving net zero by 2050 or sooner, are maintained. (March 2024)

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Net-Zero Banking Alliance — Is proposing new updates to its guidelines that stress that banks act independently, according to reporting from Reuters. This would increase climate disclosures from banks without compelling specific actions, both to avoid potential antitrust lawsuits, and to prevent bank departures from the alliance. The proposed guidelines also cover how banks engage with regulators and with lobby groups, and make a more explicit reference to the 1.5°C climate target. (March 2024)

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Royal Bank of Canada (RBC) — Announced three new actions it intends to take to accelerate the transition to a greener economy: 1) Triple lending for renewable energy across RBC Capital Markets and Commercial Banking and grow overall low-carbon energy lending to $35 billion by 2030; 2) Allocate $1 billion by 2030 to support the development of innovative climate solutions; 3 ) Accelerate capital deployment to emissions reduction efforts with a new decarbonization finance category. (March 2024)

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DEUTSCHE BANK — Published a new Sustainable Finance Framework, which outlines the methodology used to classify transactions and financial products as “sustainable.” The framework includes enhanced eligibility criteria (based on the six guiding objectives in the EU Taxonomy), and heightened governance, validation, and post-closure monitoring processes. (March 2024)

ESG TODAY »

BARCLAYS — Will no longer finance new upstream oil and gas expansion projects (among other restrictions on oil and gas funding), according to its revised Climate Change Statement. The bank will also require energy clients to have 2030 methane targets and net-zero aligned Scope 1 and 2 targets by January 2026, and produce transition plans or decarbonization strategies by January 2025. Barclays also released a Transition Finance Framework to support the bank’s commitment to finance $1 trillion of sustainable and transition finance needed to decarbonize high-emitting sectors by 2030. (Feb 2024)

PR » REUTERS » ESG TODAY »

ING — Announced it will phase out the financing of upstream oil and gas activities by 2040, with loans to these activities being reduced by 35% by 2030. ING will also aim to triple new financing for renewable energy to €7.5 billion ($8.2 billion) by 2025. (Jan 2024)

PR » ESG TODAY »

CRÉDIT AGRICOLE GROUP — This banking and investing group announced it will stop financing any new fossil fuel extraction projects and adopt a selective approach to support energy companies engaged in their transition away from fossil fuels. The bank also committed to tripling financing of renewable energy between 2020 and 2030; reducing financed emissions linked to the Oil & Gas sector to -75% by 2030 (vs 2020) versus -30% announced in 2022; and providing no corporate financing of independent producers dedicated exclusively to the exploration of oil and gas. The bank also set new commitments in five sectors to strengthen its carbon neutrality by 2050, including residential real estate; agriculture; aviation; shipping; and steel. (Dec 2023)

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FIRST ABU DHABI BANK — Announced it will lend, invest, and facilitate over $135 billion in sustainable and transition financing by 2030. The target is an 80% increase over the bank’s 2021 commitment and represents over half of the pledge made by UAE banks for sustainable finance on Finance Day at COP28. The bank also said it will expand its target to include transition financing targeting heavy, extractive, and other hard-to-abate industries. (Dec 2023)

PR » ESG TODAY »

BNP PARIBAS — Will no longer provide financing to projects dedicated to the extraction of metallurgical coal, according to reporting from Bloomberg and Reuters. This new commitment is part of the bank’s effort to align its credit portfolio in the steel sector with its Net-Zero commitment. (Dec 2023)

BLOOMBERG » REUTERS »

SOCIETE GENERALE — Announced it would cut its exposure to upstream oil and gas by 50% by 2025, and 80% by 2030, relative to 2019. The bank also pledged to create a €1 billion ($1.1 billion) investment fund focused on energy transition solutions and nature-based projects. (Sept 2023)

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WELLS FARGO — Announced interim financed emissions targets for three new sectors: Automotive, Steel, and Aviation, aiming to reduce emissions intensity (from a 2019 baseline) for automotive by 53% (for new vehicle sales); aviation by 20% (CO2 per revenue ton kilometer); and work with steel clients to lower emissions beyond its current level of 1.01 tons of CO2/ton of steel, which is already lower than the IEA’s Net-Zero Emissions scenario baseline of 1.09 tCO2/t steel. (July 2023)

NATWEST GROUP — The bank announced it will aim to provide an additional £1 billion ($1.23 billion) in lending to the UK Manufacturing sector by the end of 2030, to help manufacturers invest in cleaner, more efficient energy generation and use while supporting its goal of halving the climate impact of its financed emissions by 2030. (May 2023)

BNP PARIBAS — Released additional information on its plans to withdraw from oil and gas exploration and production activities (initially released in January). Specifically, the bank will reduce its financing of oil exploration and production by 80% by 2030, including (May 2023):

No longer providing any financing dedicated to the development of new oil and gas fields;
Phasing out financing to non-diversified oil exploration and production players that is intended to support oil production; and
Reducing the share of the general corporate-purpose facilities allocated to oil exploration and production.

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STANDARD CHARTERED — Announced a new 2030 target to reduce absolute financed emissions for the oil and gas sector by 29%, equivalent to 3.8 MTCO2e, from a 2020 baseline of 13.1 MTCO2e. The target aligns with the International Energy Agency Net Zero Emissions (IEA NZE) scenario and is consistent with the Paris Climate Agreement goal of limiting temperature rises to within 1.5º C. (May 2023)

TD BANK GROUP — Announced new ESG and sustainable finance measures. This includes a new CAD$500 billion ($363.5 billion) Sustainable & Decarbonization Finance Target by 2030, and new Scope 3 financed emissions 2030 targets for two additional sectors: aviation (8% intensity reduction) and automotive manufacturing (a 50% “tank to wheel” intensity reduction), from a 2019 baseline. (March 2023)

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CREDIT SUISSE — Announced targets for reducing financed emissions from six sectors, including emissions intensity reductions of 64% for power generation; 35% for commercial real estate; 32% for iron and steel; 31% for aluminum; and 51% for automotive (by 2030 from a 2019 baseline). It will also reduce absolute emissions in oil and gas by 49% (by 2030 from a 2019 baseline). The bank will also restrict lending to companies involved in Arctic oil and gas, oil sands, and deep sea mining. (March 2023)

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ING — Announced an expansion of its oil and gas targets for financed emissions, extending its upstream restrictions with restrictions on midstream activities (oil and gas infrastructure). The bank will also aim to reduce the volumes of the traded oil and gas it finances, by 19% by 2030. (March 2023)

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DEUTSCHE BANK — Set a series of new sustainability goals, including (March 2023):

Aiming for €500 billion ($533 million) in cumulative ESG financing and investment volumes from early 2020 to the end of 2025, including: linking supply chain financing to ESG criteria to support €5 billion sustainability-linked working capital financing commitment; providing at least €3 billion in ESG financing in developing economies and emerging markets by the end of 2025; and providing between €7-10 billion in financing for energy efficient home construction and renovation in Germany;
Net zero pathways in at least four additional sectors planned for 2023 (sectors not specified);
At least 90% of high emitting clients in the most carbon intensive sectors engaging in new corporate lending transactions to have a net zero commitment in place from 2026 onwards (up from the present 50%).

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CITI — Announced emissions reduction targets for additional sectors including auto manufacturing, commercial real estate, steel, and thermal coal mining (as detailed in its TCFD report). Specific targets for 2030 include reductions in absolute emissions of 90% from thermal coal mining, a reduction in emissions intensity of 31% for auto manufacturing, and 41% for real estate in North America (all from a 2021 baseline). For steel, Citi will set a target of having an SSP (Sustainable STEEL Principles) Climate Alignment Score of 0 in 2030, thus following decarbonization targets aligned with IEA’s Net Zero Emissions scenario. (March 2023)

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HSBC — Added greenwashing to its list of climate-related risks in its latest annual ESG review. The bank noted greenwashing could result in “significant reputational damage, impacting our revenue generating ability and potentially our access to capital.” It also recognized this risk “is likely to increase over time,” and expanded the scope of climate-related training for employees to cover greenwashing. This comes after the UK advertising regulator banned two of HSBC’s bus stop advertisements for greenwashing concerns this past October. (Feb 2023)

HSBC — Announced additional financed emissions targets for 2030 for four additional carbon intensive sectors: cement; iron, steel and aluminum; automotive; and aviation. New 2030 targets include: a 28% reduction for cement; a 42% reduction for iron, steel, and aluminum; a 25% reduction for aviation; and a 65% reduction for automotive for on-balance sheet financed emissions intensity. HSBC also announced it will publish its net zero transition plan later this year. (Feb 2023)

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BARCLAYS — Said it would stop financing all tar sands companies, as well as new oil sands pipelines, instead of working with those firms to reduce emissions, as it had said previously. The bank also announced that it would expand its phase out of financing for clients involved in coal-fired power generation by 2030 — from the UK and the EU to all OECD countries. It also set its first target for the automotive manufacturing, aiming to reduce emissions intensity by 40-64% by 2030 from a 2022 baseline. (Feb 2023)

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SMBC — Japanese bank Sumitomo Mitsui Banking Corporation (SMBC) announced it will phase out corporate and project finance exposure to coal mining and coal-fired power plants by 2040. However, “some level of trade finance” could remain available for coal dealers shipping critical fuel supplies for coal power plants, according to reporting by Reuters. (Feb 2023)

BNP PARIBAS — Pledged to transition 80% of its energy production financing activities to the production of low-carbon energies by 2030. Currently, outstanding loans for low-carbon energy were at €28.2 billion ($30.7 billion), more than the €23.7 billion ($25.8 billion) in fossil financing. By 2030, the bank has committed to reducing outstanding financing for oil extraction and production to less than €1 billion and exiting coal completely, while growing financing for low-carbon energies to €40 billion. (Jan 2023)

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PNC — Announced it would expand its environmental finance commitment to $30 billion, from its earlier goal of $20 billion set in August 2021. The goal focuses on four sectors: green buildings; renewable energy production and transmission; clean transportation, including zero and low emissions vehicles and EV charging stations; and environmental sustainability-linked bonds and loans. (Jan 2023)

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JPMORGAN CHASE — Expanded its targets to reduce emissions tied to its financing to three additional sectors: iron & steel; cement; and aviation. Specifically, by 2030, the bank aims to cut Scopes 1 and 2 emissions produced per metric ton of crude steel by 31%, Scope 1 and 2 emissions per ton of cementitious product by 29%, and Scope 1 emissions for aviation (per Revenue Tonne Kilometers) by 36%. (Jan 2023)

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HSBC — Announced updates in its oil, gas, and coal financing policies, including no financing of new oil and gas fields or related infrastructure. However, HSBC will continue to provide finance “to maintain supplies of oil and gas in line with current and future declining global oil and gas demand.” It will also require client transition plans to provide new or continued financing. HSBC has also updated its thermal coal phase-out policy, with a 70% reduction by 2030 of absolute financed emissions from mining and from power production. (Dec 2022)

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BARCLAYS — Announced a new target to facilitate $1 trillion of Sustainable and Transition Financing between 2023 and the end of 2030, after surpassing its 2018 target to deliver £150 billion of financing by 2025. The bank also announced that it will increase its own equity capital investment into global climate tech start-ups, increasing this from £175 million ($217 million) by 2025 to £500 million ($621 million) by 2027. (Dec 2022)

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CRÉDIT AGRICOLE — Published 2030 targets on five sectors, including Oil & Gas, Automotive, Power, Commercial Real Estate, and Cement. Banking targets include a 30% reduction in absolute CO2 equivalent emitted by oil and gas customers, and emissions intensity reduction goals of 58% in the power sector, 50% in automotive, 40% in commercial real estate, and 20% in cement. Crédit Agricole also announced it will disclose the targets for five additional sectors (Shipping, Aviation, Steel, Residential Real Estate, and Agriculture) in 2023. These ten sectors represent over 75% of global GHG emissions and around 60% of the group’s credit exposure. The bank also launched Crédit Agricole Transitions & Énergies, a new business line aimed at coordinating the company’s energy transition, supporting customers in their energy transitions, and identifying renewable energy assets to help the group become a renewable energy producer. (Dec 2022)

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2022 Financial System Benchmark (World Benchmarking Alliance (WBA)) — Assessing 400 banks, asset owners, asset managers and insurers, this report finds that only 20% of financial institutions publicly acknowledge their impact on people and the planet. Less than 10% of these institutions disclosed the processes they have in place to identify human rights risks and impacts, and less than 5% acknowledged they have a process to identify the impact of their activities on nature. Less than 40% have disclosed long-term net-zero targets, and only 2% of those have been translated into interim targets. Only 2% currently disclose their financing to low-income countries. (Nov 2022)

SOCIETE GENERALE — Strengthened its climate targets, including reducing its CO2 emissions intensity target from 163 grams of CO2 per kWh by 2030 to 125g; reducing its exposure to the oil and gas production sector by 20% by 2025 vs. 2019 (rather than 10%); and lowering absolute CO2 emissions concerning the end-use of oil and gas production by 30% by 2030 vs. 2019. The company also set a new target to facilitate €300 billion ($301 billion) of sustainable finance by 2025, replacing its already achieved goal of raising €120 billion between 2019 and 2023. Societe Generale has also embarked on a program to offer CSR training to 100% of its staff, with a specific component on decarbonization issues. (Oct 2022)

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RBC — Royal Bank of Canada (RBC) set 2030 interim targets for three sectors: oil & gas, power generation, and automotive. For oil & gas, RBC aims for a 35% reduction in Scope 1 and 2 emissions intensity and an 11-27% reduction in Scope 3 emissions depending on government policies over that period. For power generation, RBC will aim for a 54% reduction in Scope 1 emissions. For automotive, the bank is aiming for a 47% reduction in Scope 1, 2, and 3 emissions. RBC is also aiming to provide $500 billion in sustainable finance by 2025. (Oct 2022)

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LLOYDS BANK — Announced it will stop funding oil and gas projects, becoming the first UK bank to make this commitment. Specifically Lloyds pledged it will not support the direct financing of new oil and gas developments that did not receive approval before the end of 2021. The bank will also not provide financing to new clients in the oil and gas sector unless it is “for viable projects into renewable energy and transition technologies and clients have credible transition plans at the point of onboarding.” (Oct 2022)

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DEUTSCHE BANK — Announced new net zero aligned targets for 2030 and 2050 in four carbon-intensive sectors. Specifically, targets include (Oct 2022):

Upstream Oil & Gas Sector: 23% reduction in Scope 3 upstream financed CO2 emissions by 2030, and 90% reduction by 2050;
Power generation: 69% reduction in Scope 1 physical emission intensity by 2030 and 100% reduction by 2050;
Automotive (light duty vehicles): 59% reduction in tailpipe emission intensity by 2030 and 100% reduction by 2050;
Steel: 33% reduction in Scope 1 and 2 physical emission intensity by 2030 and 90% reduction by 2050.I

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Six of the largest U.S. banks will participate in a Federal Reserve pilot climate scenario analysis exercise in early 2023 to better understand and measure climate-related financial risks. The exercise is strictly for information-gathering purposes; it will have no capital or supervisory implications. The six participating banks include CEF members Bank of America, JPMorgan Chase, Morgan Stanley, and Wells Fargo, as well as Citigroup and Goldman Sachs. (Oct 2022)
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CIBC — The Canada-based financial institution announced a 2030 target to reduce the carbon intensity of financed emissions within its power generation portfolio by 32% (2020 base year). (Oct 2022)

Six top lenders to the global steel sector — Citi, Crédit Agricole CIB, ING, Societe Generale, Standard Chartered and UniCredit — signed the Sustainable STEEL Principles (SSP), a Climate-Aligned Finance agreement for lenders to the steel industry, convened by RMI. The principles provide a methodology for banks to measure and report the emissions associated with their loan portfolios compared to net-zero emissions pathways. (Sept 2022)

ING — Has strengthened its decarbonization goals from a 2°C trajectory to a 1.5°C trajectory across nine high-emitting priority sectors, totaling more than $324 billion in activity. Eight of these sectors, other than shipping, are aligned with net-zero by 2050 along a 1.5°C pathway. The sectors were also given 2030 goals for the first time, en route to 2050 net zero targets (other than power generation, which has a net zero goal date of 2040). Five of the nine sectors are currently on track for achieving net zero by 2050. Residential real estate, which makes up 88% of activity, is within 5% of its pathway. (Sept 2022)

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DBS — Singapore bank DBS Group has set decarbonization targets for nine sectors it invests in, with interim targets for 2030 and 2040 and net zero by 2050. These provide specifics for DBS’s commitment last year to align its lending and investment portfolios with net zero by 2050. The nine sectors—including power, oil & gas, shipping, and steel—make up the bank’s most carbon-intensive segments and “the vast majority” of the bank’s financed emissions and represent 31% of the bank’s outstanding loans. DBS set a target of net zero for the power sector by 2040 and a 28% reduction in absolute emissions in the oil & gas sector by 2030. (Sept 2022)

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STANDARD CHARTERED / ADM — International banking group, Standard Chartered, and ADM launched the bank’s first Green Trade Export Letter of Credit program. This $500 million program will help ADM expand its sustainable farming practices and source sustainably produced goods, primarily soybeans, oilseeds, and cotton, and will be supported by third-party certification mechanisms. (Aug 2022)

WELLS FARGO — Announced two new 2030 targets for GHG emissions attributable to its financing activities: a 26% reduction in absolute emissions in the oil & gas sector, and a 60% reduction in portfolio emissions intensity in the power sector (2019 baseline for both). These targets are in alignment with the company’s net-zero-by-2050 goal and informed by the target-setting guidelines of the Net-Zero Banking Alliance (NZBA), which the company joined in 2021. (May 2022)

BNP PARIBAS — Released its first-ever Climate Analytics and Alignment Report, detailing steps the firm will take to align its portfolio with it’s net-zero-by-2050 commitment. New 2025 reduction targets (2020 baseline) in the report are focused on reducing financed emissions intensity (FEI)—emissions per unit of GDP—and/or credit exposures in three key areas (May 2022):

Power generation: Minimum 30% reduction in FEI (Scope 1 only). In addition, the firm commits to €11.4 billion ($12 billion) in financing for renewable energy projects between 2022 and 2025.
Upstream oil and gas: Minimum 10% reduction in FEI (Scopes 1–3) and 12% reduction in credit exposure. In addition, the firm will no longer finance or invest in any oil and gas projects in the Arctic or Amazon regions.
Automotive, light-duty vehicles: Minimum 25% reduction in FEI (Scope 3 only).

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BANK OF AMERICA (CEF member) — Announced 2030 targets to reduce emissions related to financing activities with the auto manufacturing, energy, and power generation sectors x (April 2022):

Auto manufacturing: Reduce Scope 1, 2, and end-use Scope 3 emissions intensity by 44% gCO2e/km.
Energy: Reduce Scope 1 and 2 emissions intensity by 42% gCO2e/M and Scope 3 end-use Scope 3 emissions intensity by 29% gCO2/MJ.
Power generation: Reduce Scope 1 emissions intensity by 70% kgCO2/MWh.

STANDARD CHARTERED — Announced it will end all direct coal financing for clients by 2032. The London-based bank ended new coal financing in 2018 but will now be phasing out legacy financing as part of the bank’s amended climate policy. (April 2022)

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ING — Announced plans to increase new financing of renewable energy by 50% by year-end 2025 and discontinue dedicated financing to new oil and gas fields. These plans are in alignment with the International Energy Agency’s “Net-Zero Emissions by 2050 Roadmap” and the European Union’s “Fit for 55” and “REPowerEU” plans. (March 2022)

ING | ING 2

UBS — Announced new 2030 targets to (March 2022):

Reduce absolute financed emissions associated with its loans to fossil fuel companies by 71% (2020 baseline).
Reduce the emissions intensity associated with its loans to power generation companies by 49% (2020 baseline).
Reduce the emissions intensity of its commercial real estate lending portfolio by 44% and the emissions intensity of its residential real estate lending portfolio by 42% (2020 baseline).

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TD BANK GROUP — Set new Paris-aligned targets for its financed emissions in the Energy sector and Power Generation sector. By 2030, the company is targeting a 29% reduction over a 2019 baseline in financed emissions for the Energy sector (including clients involved in thermal coal mining, low-carbon fuels and technologies, and the exploration, transportation, and refining of oil and gas) and a 58% reduction over 2019 in financed emissions for the Power Generation sector (including clients involved in the generation of power). Targets cover clients’ operational emissions (Scopes 1 and 2) and end-use Scope 3 emissions (i.e., emissions that result from the end-use combustion of fossil fuels). (March 2022)

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CREDIT SUISSE — Set a target to reduce its financed emissions in the oil, gas, and coal sector by 49% by 2030 (2020 baseline). (March 2022)

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HSBC — Set 1.5°C-aligned 2030 targets for its financed emissions in the Oil and Gas sector and Power and Utilities sector. By 2030, the company is targeting a 34% reduction in absolute on-balance sheet financed emissions for the Oil and Gas sector (2019 baseline), as well as a 75% reduction in on-balance sheet financed emissions intensity for the Power and Utilities sector (2019 baseline). (Feb 2022)

CITIGROUP — Committed to achieving a 29% absolute reduction in financed emissions across its energy sector loan portfolio and a 63% reduction in emissions intensity for borrowers across the power sector (2020 baseline) by 2030. CEO Jane Fraser says, “We will … prioritize partnering on transition strategies before turning to client exits as a last resort.” (Jan 2022)

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GOLDMAN SACHS ASSET MANAGEMENT — Committed $250 million in preferred equity financing to support the development of new 1 gigawatt/8.7 gigawatt hour Advanced Compressed Air Energy Storage (A-CAES) projects in Australia and California. The projects will be run by LDES startup Hydrostor Inc., and the investment will also support the expansion of Hydrostor’s “project pipeline and capabilities in markets with significant near-term demand for flexibly sited long-duration energy storage.” (Jan 2022)

List of Banking News, 2021-2019 (PDF)

Green Bonds, Sustainability Bonds & Loans

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CONSTELLATION ENERGY — Issued the first green bond in the U.S. to finance nuclear energy projects. The 30-year $900 million bond focuses on maintenance, expansion, and life extensions of its nuclear power generation. (March 2024)

PR » ESG TODAY »

VERIZON — Issued a new green bond offering of $1 billion, with the net proceeds expected to be allocated entirely toward renewable energy investments. The company has issued six green bonds totaling $6 billion since 2019. (March 2024)

PR » ESG TODAY »

VERIZON — Published a report outlining the full allocation of the $994 million in net proceeds from its fifth green bond. Verizon allocated the entirety to renewable energy purchase agreements, covering nearly 0.9 GW of new capacity, supporting projects in five states. (Feb 2024)

PR » ESG TODAY »

DOW — Announced the close of its inaugural green bond offering, totaling $1.25 billion, to support the company’s decarbonization and circular economy strategies. (Feb 2024)

PR » ESG TODAY »

Issuance of green, social, sustainability, and sustainability-linked (GSSS) bonds is on track to reach $950 billion in 2023, even with a 26% year-over-year decline to $198 billion in the third quarter. GSSS bonds made up 14% of the market over the first three quarters of 2023, compared to 13% over the same period of 2022. In Q3, only sustainability-linked bonds increased, up 73% to $19 billion. (Nov 2023)

PR » ESG TODAY »

VERIZON — Announced a green bond offering of $1 billion the net proceeds of which will be used for renewable energy. The goal of the offering is to advance the transition to greener electrical grids across the US. Verizon has now issued five green bonds for a total of $5 billion since 2019. (May 2023)

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PANDORA — Jewelry designer and retailer Pandora announced a new program for the issuance of senior unsecured notes, for an aggregate total of €500 million ($533 million). The company will use the proceeds for planned refinancing and general corporate purposes and will link the program to Pandora’s sustainability performance, specifically greenhouse gas emissions reductions (of 90% of scope 1 and 2 by the end of 2025 and 42% of scope 3 by 2030) and procurement of recycled silver and gold (100% by 2025). (March 2023)

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The issuance of green, social, sustainable, and sustainability-linked bonds (GSSSB) fell 19% in 2022 to $853.5 billion. These bonds did outperform the broader market, growing to 13% of total issuance, up from 12% in 2021 and 7% in 2020. The issuance of sustainability-linked bonds (SLBs) declined 25% to $73 billion, in part due to stakeholder scrutiny and credibility issues on “whether SLBs help companies achieve meaningful sustainability targets.” (Feb 2023)

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Of a sample of nearly 1,000 green bonds issued over the past decade, 37% contained no green commitments of any sort, according to a new legal study. Green promises have declined in recent years while disclaimers have grown, even as demand for these instruments has been growing. The researchers also found a “concerning lack of enforceability of green promises” and conclude that better certification regimes and improved fund disclosures could address this. (Feb 2023)

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COMCAST — Announced the company’s first green bond offering, to support its effort to become carbon neutral by 2035. This $1 billion 10-year green bond includes five investment areas, including renewable energy; energy efficiency; green buildings, campuses, communities, and cities; clean transportation; and circular economy. (Feb 2023)

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ENI — Italian energy company Eni issued €2 billion of its new sustainability-linked bond (SLB), twice its initial planned offering of €1 billion after receiving orders from over 300,000 investors. These bonds will be tied to Eni’s installed renewable energy capacity and its upstream Scope 1 and Scope 2 carbon footprint. (Jan 2023)

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DHL — Published its “Sustainability-Linked Finance Framework,” linking the company’s sustainability targets to its financing strategies. This will allow DHL to issue sustainability-linked bonds in the future. Its absolute annual CO2 emissions will be a key performance indicator to determine interest payments of these bonds. (Dec 2022)

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MERCEDES-BENZ — Converted an €11 billion ($10.69 billion) Revolving Credit Facility into a sustainability-linked loan, with performance targets focused on enhancing ESG and cutting the company’s CO2 footprint. Mercedes-Benz also announced its collaboration with Microsoft to connect around 30 passenger car plants to the Microsoft Cloud. This will enhance transparency and predictability across the production and supply chain and make vehicle production 20 percent more efficient by 2025. (Oct 2022)

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COMPASS GROUP — Food services group Compass Group issued two Sustainable Bonds (€500m and £250m) to deliver its global Climate Net Zero target. The bonds will be used on projects that will enhance responsible sourcing, products purchased from local and diverse suppliers, and other expenditures that support decarbonization in the group’s value chain. (Sept 2022)

ANGLO AMERICAN — Issued its first sustainability-linked bond, for €745 million, including performance targets to reduce greenhouse gas emissions and fresh water abstraction. Bond investors will be entitled to a higher final coupon payment should the company not meet certain targets, including reducing absolute greenhouse gas emissions (Scopes 1 and 2) by 30% by 2030 compared to 2016 and reducing the abstraction of fresh water in water scarce areas by 50% by 2030 compared to 2015. (Sept 2022)

COCA-COLA EUROPACIFIC PARTNERS (CCEP) / RABOBANK — CCEP implemented a new sustainability-linked supply chain finance program, operated and funded by Rabobank, a food and agriculture specialist bank. The program will incentivize suppliers to make sustainability improvements and help CCEP reduce GHG emissions across its supply chain by 30% by 2030 (compared to 2019) and achieve net zero by 2040. (Aug 2022)

PEPSICO — Announced the closing of a new $1.25 billion 10-year Green Bond, its second since 2019. The company will use an amount equivalent to the net proceeds from the offering to invest in key environmental sustainability initiatives that fit within two pillars of its PepsiCo Positive (pep+) agenda that are aligned with the UN Sustainable Development Goals (SDGs): “Positive Agriculture” and “Positive Value Chain.” (July 2022)

APPLE — Investments from Apple’s $4.7 billion Green Bond program, intended to spur new low-carbon manufacturing and recycling technologies, have contributed to the development of the world’s first commercial-grade, low-carbon aluminum available at industrial scale. Apple is purchasing the aluminum from ELYSIS—an investment partnership with Alcoa, Rio Tinto and the governments of Canada and Quebec—with intended use in its iPhone SE. (March 2022)

Apple | Reuters

S&P GLOBAL — Issued its inaugural sustainability-linked bond at $1.25 billion, with interest tied to sustainability targets. (March 2022)

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ADM — Issued its first sustainable bond at $750 million. It plans to use the net proceeds to finance and/or refinance green projects and social projects that advance its ESG goals. (Feb 2022)

List of Green Bonds, Sustainability Bonds & Loans, 2021-2019 (PDF)

Insurance

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RWE — Announced it will increase investments in its green energy portfolio by €55 billion ($60 billion) worldwide between 2024 and 2030, nearly doubling capacity to more than 65 GW (from its current 35 GW). 40% will be invested in onshore wind and solar and 35% in offshore wind projects, with additional investments in battery capacity, and hydrogen-ready gas-fired power plants and electrolyzer capacity. (Dec 2023)

PR » REUTERS »

Insured natural catastrophe losses in 2023 are expected to reach over $100 billion globally, according to a new report from reinsurance company Gallagher Re. In the first three quarters of 2023, total economic losses reached $290 billion, and insured losses reached $93 billion, with $86 billion tied to weather/climate events. The decadal average is now $109 billion for weather/climate events. (October 2023)

AXIOS »

Underwriting our planet: how insurers can help address the crises in climate and biodiversity (WWF Switzerland and Deloitte Switzerland) — Reports that the economic activity underwritten by insurance companies is fueling climate change and nature loss rather than protecting the environment. Among the report’s recommendations: Insurance companies should: align underwriting policies with global climate and biodiversity goals; design insurance products to promote the use of green technologies; and exclude the most environmentally harmful economic activities and sectors, such as expanding fossil fuel industries, deep sea mining, and deforestation. (Sept 2023)

Changing Climate for the Insurance Sector (Ceres, ERM, and Persefoni) — Finds that 77% of U.S. insurers sampled held $536 billion in fossil fuel-related assets in 2019 (out of $5.7 trillion in assets under management), even as insurance companies are “uniquely exposed” to the climate crisis. The top 16 U.S. insurers (out of 411) alone held more than 50% of the fossil fuel-related assets owned by the sector. The report also analyzes the potential for U.S. insurers to play an important role in encouraging corporations to transition to low carbon solutions, including the role green bonds play in insurers’ investment portfolios. (Aug 2023)

AXA — Set targets for its Property & Casualty insurance portfolios for the first time. These include:

Reducing the carbon intensity of the largest personal motor portfolios by 20% by 2030 (2019 baseline);
Reducing the absolute carbon emissions of the Group’s largest commercial insurance clients by 30% and the carbon intensity of other corporate clients by 20% by 2030 (2021 baseline);
Increasing its business in renewable energies and sectors transitioning to low carbon business models, and developing environmentally sustainable claims management for its motor business by 2026.

AXA is also setting a new target for its investment activities. It aims to reduce the carbon footprint of its general account assets by 50% between 2019 and 2030 (upgrading its earlier goal of a 20% reduction between 2019 and 2025). (July 2023)

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CHUBB — Property and casualty insurer Chubb announced new underwriting criteria for oil and gas extraction projects that will require clients to reduce methane emissions. At the minimum, clients will have to have programs in place for leak detection and repair and the elimination of non-emergency venting. Chubb also announced it will not underwrite projects in government-protected conservation areas in the World Database on Protected Areas that do not allow for sustainable use. (March 2023)

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NZIA Target-Setting Protocol Version 1.0 (Net-Zero Insurance Alliance (NZIA)) — NZIA launched the Alliance’s first Target-Setting Protocol. This will enable NZIA members to begin to independently set science-based, intermediate targets for their respective insurance and reinsurance underwriting portfolios in line with a net-zero transition pathway consistent with a maximum temperature rise of 1.5°C above pre-industrial levels by 2100. Existing NZIA members (29 total representing 15% of world premium volume) are required to set and disclose their initial targets by July 31, 2023. (Jan 2023)

ALLSTATE — Announced it has committed to achieve net zero emissions for direct, indirect and value-chain greenhouse gas emissions by 2030. It will achieve this by reducing its office space and building emissions; purchasing renewable energy; reducing emissions of suppliers; and offsetting remaining real estate impacts. It will also set a target year for achieving a net zero investment portfolio by the end of 2025. (Jan 2023)

The Nature Conservancy (TNC) announced it has purchased the first-ever coral reef insurance policy in the U.S. The policy will provide funding for rapid coral reef repair and restoration across Hawai‘i immediately following hurricane or tropical storm damage. TNC selected Munich Re to provide parametric coverage, and will activate an advisory committee to guide the use and distribution of the funds for reef restoration. (Nov 2022)

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AXIS — Reinsurer AXIS Capital announced it would no longer underwrite energy, mining, or other projects that did not have the backing of local Indigenous communities. This makes AXIS the first North American insurer to adopt a policy like this. (Oct 2022)

MUNICH RE — Announced that as of 1 April 2023, the reinsurer will no longer invest or insure contracts or projects exclusively covering the planning, financing, or operation of oil and gas. This includes new oil and gas fields, new midstream infrastructure related to oil, and new oil fired power plants that have not been started by 31 December 2022. (Oct 2022)

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MARSH — Announced that U.S. clients will now have the option to pay their insurance broking and risk advisory fees in voluntary carbon offset credits or renewable energy certificates (RECs), a first-of-its kind in the financial services industry. This will allow companies, which may have purchased too many credits, to transfer these. (Sept 2022)

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MARSH — The insurance broker Marsh announced the launch of the world’s first insurance and reinsurance facility that provides dedicated insurance capacity for new and existing hydrogen energy projects. The facility provides up to $300 million of coverage per risk for both construction and start up phases of both green and blue hydrogen projects and is backed by A-rated global insurers, including American International Group (AIG) and Liberty Specialty Markets, part of Liberty Mutual Insurance Group. (Aug 2022)

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World Property and Casualty Insurance Report 2022: Walking the talk (Efma / Capgemini) — Finds that climate change is hurting the insurance industry, but insurers focused on building climate-resilient business models can generate deeper customer trust, boost their relevance, and increase profitability. The report suggests three key actions insurers should take to achieve greater climate resiliency: 1) Include climate resiliency in corporate sustainability strategy; 2) Embed resiliency across the entire value chain; and 3) Redesign technology strategy to prioritize innovation, customer experience, and corporate citizenship. Additional findings from insurer and customer surveys include (May 2022):

Economic loss driven by climate change has increased by 250% over the past three decades
Only 8% of insurers are on course to achieve climate resiliency
73% of policyholders rank climate change among their top concerns
40% of insurers rank climate change as a top priority
More than 65% of insurance customers are interested in climate risk prevention and mitigation services, and 53% will pay for them.

ALLIANZ — Will reduce GHG emissions from its sites and activities in over 70 markets to net-zero by 2030, instead of 2050 as originally planned. Within its core business, Allianz will no longer invest in or underwrite new single-site or stand-alone oil and selected gas risks, oil and gas activities related to the Arctic and the Antarctic, or extra-heavy oil and ultra-deep-sea risks. In addition, as of January 1, 2025, Allianz will (May 2022):

Require a robust "net-zero by 2050" commitment, across Scopes 1–3, from oil and gas companies as a pre-condition for company-level insurance coverage and investments.
Cut off “insurance, facultative reinsurance, or funding” for companies with more than 10% of revenue coming from tar sands across their entire business profile.

SWISS RE — Pledged to (March 2022):

Beginning in 2022, discontinue insuring oil and gas projects that get the go-ahead from their parent company, unless the company has an “independently verified, science-based plan to reach net-zero emissions,” according to Reuters.
Aim for half its oil and gas premiums to come from companies aligned with a “net-zero by 2050 plan” by 2025, and to have all premiums for the sector be aligned by 2030.
No longer insure companies or projects with over 10% of their production in the Arctic (apart from Norwegian producers) starting in 2022.
Increase female representation on its board of directors to at least 30% by the 2023 annual general meeting.

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TRAVELERS — Committed to (Feb 2022):

Not underwriting the construction and operation of new coal-fired power plants
Not underwriting or making new investments in companies that generate over 30% of their revenue or energy production from coal, or have over 30% of their reserves in tar sands
Phasing out existing underwriting relationships that exceed the aforementioned thresholds by 2030

List of Insurance News, 2021-2019 (PDF)

Research & Tools

Market Trends & Indicators: ESG and Investment

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In the Name of Climate: Private vs. Public Funds (MSCI) — Examines public and private funds with climate-related names and finds that more than 70% of the cumulative capitalization attributed to funds launched since the start of 2020. There are now more than 1,300 climate funds globally with over $500 billion in assets under management (AUM). Over 70% of public climate funds were launched between 2020 and Q3 2023, and represent almost 80% of AUM. In private markets, there were a total of 173 climate funds, with AUM of about $90.5 billion, with 73% of AUM from funds launched between 2020 and Q3 2023. Utilities and industrials made up about 64% of net asset value (NAV) of private climate funds, while information technology and industrials made up over 40% of NAV of public funds. (April 2024)

ESG TODAY »

A record 263 climate-related shareholder resolutions have been filed so far during the 2024 proxy season, more than in the entire 2023 season, according to tracking by Ceres. 56 have already been withdrawn in return for a commitment, and one resolution asking for Scope 1 and 2 emissions disclosures and target passed a majority vote. Emission reduction goals and climate transition plans are the leading category, making up 28% of the tracked resolutions. (April 2024)

PR » REUTERS »

ESG trends are mixed within the investor community, according to new analysis by PitchBook. Fewer venture fund managers are making public ESG commitments each quarter; fundraising for impact funds declined significantly in 2023; and the financial performance of ESG-committed asset managers has varied. On the other hand, some fund managers are “leaning into ESG” as a value creation and risk management tool; no evidence finds that ESG necessitates sacrificing returns; and climate impact funds are taking a larger share of impact capital. (April 2024)

AXIOS »

By 2030, Africa will be $2.5 trillion short of the finance needed to cope with climate change, according to a United Nations official, as reported by Reuters. (March 2024)

REUTERS »

Green, social, sustainability and sustainability-linked bond (GSSSB) issuance is projected to remain at its current level (ranging from $0.95 trillion to $1.05 trillion), according to new research from S&P Global Ratings. This compares to the $0.98 trillion issued in 2023. The increased adoption of sustainable taxonomies, growth of issuance in emerging markets, and efforts to accelerate the energy transition could increase issuance, however, this could be offset by high interest rates and economic slowdown in key regions. (Feb 2024)

Investment Executive »

54% of investors anticipate increasing their sustainable investments in the next year, according to a survey of 2,820 investors across the U.S., the EU, and Japan by the Morgan Stanley Institute for Sustainable Investing. 77% are interested in sustainable investing, driven by inflation, new climate science findings, and financial performance of sustainable investments. 73% also believe strong ESG practices can deliver financial returns, though over 60% are concerned about greenwashing risks and lack of ESG data transparency. 82% of investors believe companies should address environmental issues and 77% social issues. (Feb 2024)

ESG TODAY »

The banking sector generated about $3 billion in fees underwriting environmentally friendly debt, more than the $2.7 billion the sector earned from fossil-fuel transactions, according to Bloomberg. This is the second year in a row that banks earned more from green projects than from financing oil, gas, and coal activities. Overall, banks extended $583 billion in green bonds and loans in 2023, and $527 billion in fossil fuel debt. (Jan 2024)

BLOOMBERG »

85% of investors and companies plan to boost ESG investment over the next five years, according to Bloomberg Intelligence’s ESG Market Navigator survey. 84% of company executives said ESG helps deliver a more robust corporate strategy, and 85% of investors said ESG leads to “better returns, resilient portfolios and enhanced fundamental analysis.” However, only 55% of executives see ESG as one of their top two priorities. 90% of respondents also stated that AI is a ‘friend not a foe’ for ESG. (Nov 2023)

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67% of global respondents think it is likely or highly likely that the energy transition will spur investment in innovation, creating significant investment opportunities, according to a study by Schroders surveying 770 institutional investors with $34.7 trillion in assets. Half believe that infrastructure/renewables are best placed to capture the investment opportunities presented by decarbonization trends in the medium-term, and 41% expect to increase allocations to infrastructure over the next 12 months. 43% also noted that having a positive impact on people and the planet as a top driver of sustainable investing. And while half of respondents have already made commitments to reaching net zero across their portfolios, 21% stated that they have no intentions of doing so, including 39% of investors in North America. (Oct 2023)

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The International Monetary Fund estimates that 80% of the $2 trillion in annual investment needed until 2030 for the net zero transition in developing economies will need to come from the private sector (90% if excluding China), more than double the current share. (Oct 2023)

PR » REUTERS »

Sustainable investments increased to $1.1 trillion at 87 banks participating in the Net Zero Banking Alliance in 2022, up 55% over 2021, according to Corporate Knights and The Banker. Their underwriting of sustainable bonds and providing sustainable advisory services reached $1.5 trillion in 2022, up 144%. They also made $53 billion in “sustainable revenues” in 2022. (Oct 2023)

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The share of EU UCITS investment funds with ESG words in their name has increased from less than 3% in 2013 to 14% in 2023 (€974 billion of Assets under Management out of €6.8 trillion), according to a report by the European Securities and Markets Authority (ESMA). The study examined ESG-language in more than 100,000 fund documents and also found that fund managers tend to prefer generic language rather than more specific words. (Oct 2023)

PR » ESG TODAY »

Climate-related funds grew from fewer than 200 in 2018 to more than 1,400 (as of June 2023), according to research from Morningstar. In the past 18 months, assets in these funds jumped 30% to $534 billion, with Europe making up 84% of global assets. Climate Transition funds grew 304% to $9.3 billion in the past 18 months and accounted for almost half of all climate fund assets in Europe. (The report divides climate funds into five mutually exclusive categories: Low Carbon, Climate Transition, Green Bond, Climate Solutions, and Clean Energy/Tech.) (Oct 2023)PR » BLOOMBERG »

Global investment of $75 trillion between now and 2050 ($2.7 trillion/year) is needed to achieve net zero emissions by 2050 and avoid temperatures rising above 1.5°C, according to new analysis by Wood Mackenzie. Three-quarters of that investment is needed in the power and infrastructure sectors. (Sept 2023)

Most use of proceeds (UoPs) of green, social, and sustainability bonds are contributing to environmentally or socially positive activities, according to an analysis of these bonds by Sustainable Fitch. However, many skew toward capital-intensive and climate mitigation-focused projects (such as renewable energy, green buildings, and clean transportation). Other activities (including pollution prevention and climate adaptation) remain underfunded. (Aug 2023)

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74% of investors include ESG considerations as part of their Merger & Acquisition (M&A) agenda, but only 51% possess a proper understanding of ESG in their area of investment, according to a KPMG survey of over 200 M&A practitioners in the U.S. and Europe, Middle East and Africa (EMA). 48% of EMA and 27% of U.S. investors also said they will do ESG diligence more frequently in the future (on more than 80% of deals), up from 25% for EMA and 16% for the U.S. for the previous two years. The majority said deal cancellation was the most common consequence of a material finding during ESG due diligence. And 68% of EMA investors and 62% in the U.S. said they would pay a premium for a target that demonstrates a high level of ESG maturity that is in line with their ESG priorities. (Aug 2023)

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FinanceMap’s 2023 Asset Managers & Climate Change 2023 (InfluenceMap) — Asset managers have not made significant progress on climate goals since 2021, despite an increase in climate targets through Net Zero Asset Managers (NZAM) and similar initiatives, according to this assessment of 45 of the world’s largest asset managers. Of $16.4 trillion of fund portfolios analyzed, 95% are misaligned with the goals of the Paris Agreement, and asset managers hold 2.8 times more equity value in fossil fuel production companies ($880 billion) than in green investments ($309 billion). In particular, the ambition of U.S. asset managers appears to have decreased, reversing an upwards trend until 2022 (a trend coinciding with the “anti-ESG trend”). Overall, the percentage of asset managers receiving an A in FinanceMap’s stewardship score decreased from 33% in 2021 to 18% in 2023. Support for climate-ambitious resolutions also fell, from 61% in 2021 to 50% in 2022 (with U.S. managers falling from 50% in 2021 to 36% in 2022). Of the 45 asset managers assessed, 86% are also members of at least one industry groups opposing ambitious finance policy globally. (Aug 2023)

While the majority of assets under management in Europe are invested in ESG or sustainability funds (about €7 trillion out of €12 trillion), most of these are not aligned with the EU Taxonomy for sustainable activities, according to a new report by MSCI. 88% of Article 8 funds (those partly focused on ESG issues) and 63% of Article 9 funds (those with core sustainability objectives) did not include taxonomy-aligned investments. This was primarily driven by a shortfall in disclosures by underlying companies. Article 8 and 9 funds made up €6.2 trillion of assets under management in Europe as of February 2023. (July 2023)

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Support for environmental and social shareholder proposals dropped to about 22% this year at annual meetings, down from a peak of 33% in 2021, according to votes compiled by the Sustainable Investments Institute. Support has not been this low since 2017, and was attributed to political opposition to ESG initiatives. Support for worker-related shareholder proposals, however, did not weaken. (June 2023)

ESG private market assets under management (PM-AUM) have risen from around $600 billion in 2015 to $1.1 trillion in 2021, according to a new report from PwC. The report, based on a survey of 300 General Partners (GPs) and 300 Limited Partners (LPs) across the U.S., EU, UK, and Asia Pacific, found that 87.5% of LPs surveyed plan to increase their private markets ESG investments over the next two years, and that 86.5% of asset managers intend to expand their ESG private markets offerings over the same timeframe. More than three quarters of respondents intend to stop investing in non-ESG products over the next two years. (June 2023)

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Voting Against Nature (Planet Tracker) — Analyzes 26,500 votes on biodiversity proposals, finding that 38% voted in favor while 54% voted against (with 8% abstaining or not voting). Only 7% of funds disclosed voting rationale, and those that did were largely when the vote was in favor. Sustainability funds of the three largest asset managers voted against biodiversity proposals 80-100% of the time, with none recording the rationale for their voting. While 76% of sustainability and ESG funds in the study did support biodiversity proposals (double the proportion of other fund types), they only made up 3% of votes so had little impact on the outcomes. (May 2023)

Only 4% of “Sustainable” Investment Funds would automatically comply with requirements of U.S., UK, and EU regulatory investment fund labeling rules, according to new analysis by sustainability tech platform Clarity AI. Assessing over 18,000 funds across Europe, the analysis found that only 20% of sustainable funds would comply with the November European Securities and Market Authority (ESMA) consultation (regarding funds that use certain ESG or sustainability-related terms in their names). Only these 20% currently plan to invest over 50% of assets in sustainable investments, a proposed ESMA requirement. Another 20% actually planned to invest less than 10% in sustainable investments. (May 2023)

State Street & S&P Global Institutional Investor Carbon Indicator (State Street and S&P Global) — Tracks overall exposure of the portfolio holdings of institutional investors to carbon emissions. Found that carbon risk among institutional investors moved in different directions: emissions exposures increased with the post-COVID recovery (rising over 8% between March 2022 and March 2023), while intensity exposures fell 10% in the same time period, as the longer term trend in efficiency gains continued. The carbon-intensive Energy, Materials, and Utilities sectors drove both increased exposure and lower carbon intensity trends. The report also investigated the drivers of these shifts, divided into flow effects (manager purchase/sell decisions); company effects (emission changes at the company level); and price effects (changes in company values that can shift weightings). (May 2023)

Only 6% of asset managers are excluding investments in companies knowingly in breach of human rights standards across every fund in their portfolio, according to this assessment of 77 of the world’s largest asset managers by ShareAction. 43% of asset managers apply this exclusion to their ESG funds only. The study also found that only 10 asset managers (13%) have commitments to take the UN’s principle of Free, Prior and Informed Consent (FPIC) into consideration in investment decisions (which gives Indigenous and local communities a say on projects affecting them or their territories). (May 2023)

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A Bain & Company survey of 55 global financial services firms (representing $40+ trillion in assets) finds different views on whether ESG issues represent risks to be avoided or opportunities to be seized. While 60% of European firms saw environmental transition as “an opportunity to create strategic value,” less than a third of firms in the Americas or Asia Pacific did. The survey found that respondents expect stakeholder pressure to address ESG issues will increase, particularly from regulators but also from customers and shareholders. Yet 65% of respondents have yet to integrate climate data and metrics into their credit underwriting processes. (May 2023)

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More than 200 financial institutions (FIs) have adopted coal exclusion policies, twice the number as of April 2019, according to a new report by the Institute for Energy Economics and Financial Analysis (IEEFA). Of the FIs (including banks, insurance companies and other institutions), 114 are in Europe, 53 in Asia-Pacific, 27 in North America, 6 in Africa, and 2 in South America. Growth in Asia has been particularly rapid, with only 10 FIs included between 2013 and April 2019, compared to 41 now. (May 2023)

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Fund managers offering strategies targeting biodiversity have expanded their asset base by 15% in two months. This comes after a 150% growth in the number of funds offering biodiversity strategies in 2022. However, biodiversity funds remain a tiny percentage of ESG investments (at $2.9 billion in combined assets), and currently lack reliable data. (April 2023)

Point of No Returns 2023: Part I – Ranking and General Findings (ShareAction) — Ranks the responsible investment policies and practices of 77 of the world’s largest asset managers (with a combined $77 trillion in assets under management) and assesses the ambition, scope, and transparency of these firms’ approaches. Key findings include (March 2023):

Two-thirds of managers surveyed ($60 trillion in assets) scored a CCC rating or worse, indicating serious gaps in their responsible investment policies and practices for at least one section analyzed;
European managers “vastly outperformed” those in the U.S. and Asia Pacific, taking all Top 10 spots in the ranking;
53% of asset managers have set a public net-zero target for 2050 at the latest and just 22% have published a climate transition plan.
Only 10% had a dedicated biodiversity policy covering all their portfolios, while 34% said biodiversity was included in their general responsible investing policy;
40% did not monitor whether investee companies operate in areas of global biodiversity importance, while 20% monitored the metric, but did not impose any restrictions.

The ratio of clean-energy lending and equity underwriting to fossil fuels was about 0.8 to 1 at the end of 2021, according to a BloombergNEF report that examines the amount of financing banks are putting into the energy transition. This Energy Supply Banking Ratio (ESBR) is far lower than the 4 to 1 ratio needed by 2030 to limit global temperature rise to 1.5°C. Bank financing for energy supply totaled $1.9 trillion in 2021, with $842 billion going to low-carbon projects and companies, and $1,038 billion to fossil fuels. While the ESBR was 0.6 to 1 in the U.S. and China, Europe had an ESBR of 2.6 to 1. (Africa & the Middle East had an ESBR of 0.1.) The 126 banks that are part of the Net-Zero Banking Alliance (NZBA) had an ESBR of 0.92 to 1. Banks not in the NZBA had an ESBR of 0.64 to 1. (March 2023)

Nearly two-thirds of 500 investors (with combined assets under management of $3.5 trillion) surveyed by Aviva Investors plan to increase allocations to real assets over the next two years, while only 12% plan to reduce exposure. At 57%, the primary reason for this increase is diversification. 53% see inflation-linked income as primary, up from one-third three years ago. 28% also want to use real assets to make a positive ESG impact, up from 17% three years ago. Also, 27% of these investors plan to invest in “sustainable real assets,” particularly renewable infrastructure. (Jan 2023)

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Voting Matters 2022 (ShareAction) — This report assesses how 68 of the world’s largest asset managers voted on 252 shareholder resolutions addressing environmental and social issues. Key findings (Jan 2023):

The four largest asset managers backed fewer shareholder resolutions on environmental and social issues in 2022 than 2021;
49 additional resolutions would have received majority support if the three largest asset managers had voted in favor of them;
Asset managers were hesitant to back action-oriented resolutions (as opposed to disclosure-oriented ones)
Climate resolutions deemed important by voluntary initiatives such as the Net Zero Asset Managers Initiative and Climate Action 100+ did not receive support from many of their members.

Total assets involved in sustainable investing strategies totaled $8.4 trillion at the end of 2021, according to the latest Report on US Sustainable Investing Trends by The Forum for Sustainable and Responsible Investment (US SIF). This is a reduction of more than half from the 2019 total of $17.1 trillion (its last accounting), due primarily to the SEC’s proposals to strengthen standards on disclosure requirements for ESG funds. Climate change/carbon emissions was the top issue addressed by both money managers and institutional asset owners, with each group saying it applied to more than $3 trillion of the assets under their purview. (Dec 2022)

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The Net Zero Asset Managers initiative (NZAM) — Announced the total number of asset managers committing to net zero increased by 21 to a total of 291, representing more than $66 trillion in assets under management (AUM). 86 additional asset managers have also announced initial targets, bringing the total to 169, and bringing the total AUM committed to being managed in line with achieving net zero by 2050 or sooner to approximately $21.8 trillion. (Nov 2022)

The Financial Conduct Authority in the UK is proposing new measures to reduce greenwashing in financial markets. These include investment product sustainability labels and restrictions on how terms like “ESG,” “green,” and “sustainable” can be used in investment product names. (Oct 2022)

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2022 Scorecard on Insurance, Fossil Fuels and the Climate Emergency (Insure Our Future) — Finds that the market share of insurers with coal exclusions has reached 62% in the reinsurance and 39% in the primary insurance markets, based on policies of the 30 largest insurance firms globally. Many of the remaining insurers without exclusions are not active in the fossil fuel sector and remaining coal insurers “lack the expertise or capacity to underwrite large coal plants outside China.” In total, coal exit policies have increased worldwide from 35 to 41 in the past year. Global capacity available for coal now accounts for just one-tenth of the capacity available for the global power sector overall. Oil and gas project insurance restrictions have also grown from 3 to 13 in the last year, representing 38% of the reinsurance market and 15% of primary insurance market. (Oct 2022)

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Policy Assessment 2022: Is Your Money Destroying Rainforests or Violating Rights? (Forests & Finance Coalition) — Banks and investors substantially “increased their backing of companies in the agriculture, forestry and land use sectors most responsible for deforestation in 2021,” with finance to those companies rising over 60% to $47 billion between 2020-2021. Since the Paris Agreement was signed in 2015 banks have provided $267 billion in credit to just 300 forest-risk commodity companies operating in the world’s three largest tropical forest regions. Based on an assessment of 200 banks and investors, the report finds that the majority of banks and investors involved lack sufficient ESG policies and have “no policies to prevent deforestation, peat degradation, fires, or uphold human rights… or to prevent forced or child labor.” The average financial institution assessed scored 1.6 out of 10 based on publicly available ESG policies, with 59% of institutions scoring under 1 and just three scoring 7 or higher. (Oct 2022)

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Banks with more gender-diverse boards provide less credit to more environmentally harmful companies, according to research by the European Central Bank. Specifically, banks with more than 37% female directors displayed 10% lower lending volumes to firms in the last quartile of pollution intensity. The research also found that this effect is stronger in countries with more female climate-oriented politicians. (Oct 2022)

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The size of the worldwide impact investing market is now estimated to be $1.16 trillion, marking the first time it surpassed the $1 trillion mark, according to a new report by The Global Impact Investing Network (GIIN). (Oct 2022)

Decarbonisation Tracker: Progress to Net Zero Through the Lens of Investment (Swiss Re) — The world still needs to invest cumulatively more than $270 trillion in decarbonization actions if net-zero 2050 ambitions are to be met, according to new research by Swiss Re. This only aggregates four sectors — energy, transport, buildings, and industry — so accounts for 70% of global greenhouse gas emissions at most. Of these, transport needs the most investment at $114 trillion, energy $78 trillion, buildings $65 trillion, and industry $14 trillion. The report also found that if investments were to continue at the current pace, the 2050 net zero targets would be missed by nearly 20 years. (Oct 2022)

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Net-Zero Owner Alliance — The UN-convened alliance published its second Progress Report, showing significant membership growth matched by credible intermediate decarbonization targets. The alliance now totals 74 institutional investors, six times its membership at formation, and represents over $10.6 trillion in assets under management. 44 members, representing $7.1 trillion, are setting 2025 targets in line with the Paris Agreement. In an additional announcement, the alliance also called on companies in sectors that included oil and gas, utilities, transportation, cement, steel, agriculture, forestry and construction to disseminate key climate metrics; transparently disclose forward-looking decarbonization transition plans; and provide current data as well as 5- and 10- year targets. (Sept 2022)

Investments in climate and carbon-focused startups reached a record $1.4 billion in the second quarter of 2022—an increase of 47% from the previous year, according to BloombergNEF. This is compared to the broader market for venture funding, which experienced the largest quarterly percentage drop in nearly ten years. Of the money invested, the majority, $912 million, went toward negative-emission technologies. $212 million was invested in carbon management, and $184 million in climate monitoring and modeling. (Aug 2022)

New research from sustainability data firm ESG Book analyzed equity and fixed income funds representing $40 trillion and assigned “temperature scores” to their assets based in part on their emissions per million dollars of revenue, referred to as emissions intensity ratios. The analysis reveals that none of the world’s major market indices are on track to remain below 1.5 degrees, with 70% of assets on average across some 35,000 investment funds failing to meet necessary emissions reductions. The research aims to help provide “accurate information required to allocate capital more effectively to sustainable, higher impact assets.” (July 2022)

A new survey conducted by Bloomberg in May 2022 during Bloomberg’s Risk and Regulation Week polled over 100 senior executives from global financial services firms and corporations and shows that most are aligned on the goal of incorporating climate risk into their broader risk management frameworks beyond regulatory compliance, but lack consensus on how to effectively manage and report on these risks. (July 2022)

27% of respondents said senior management are their top audience for their climate risk analysis, followed by regulators (21%), investors (20%), portfolio managers (18%), and traders (13%).

Top priorities for credit risk management included generating early warning signals (30%), identifying credit risk developments as they may affect counterparties (28%), scenario analysis and stress tests (18%), and firm alignment on managing credit risks (17%).

The Net Zero Asset Managers initiative (NZAM) — An alliance of asset managers committed to achieving net-zero emissions across their entire portfolios by 2050. Since November, NZAM has added 53 new signatories for a total of 273, representing more than USD 61.3 trillion in assets under management. In that same time frame 43 signatories—including CEF member BlackRock—have disclosed the initial percentage of their portfolios that will be managed in alignment with net zero. The total number of signatories to have done so stands at 84, with 39% ($16 trillion) of their combined assets under management committed. (June 2022)

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Reclaim Finance released a ranking of 30 asset managers on their climate commitments, “with a focus on the fossil fuel sector.” The NGO concludes that only eight of the managers publicly ask for short-term emission targets and none have “clear, comprehensive” demands for fossil fuel companies. (April 2022)

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A group of institutional investors managing a total of $7.1 trillion in assets have sent letters to the audit committees of 34 of Europe’s largest companies, demanding to know why material climate risks are not adequately represented in their financial reporting. The letters come in advance of annual general meeting (AGM) season, and with a warning that audit committee director appointments may be challenged if satisfactory explanations are not forthcoming. All investors signing the letters are members of the Institutional Investors Group on Climate Change (IIGCC). (April 2022)

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The 13th annual Banking on Climate Chaos report, by Rainforest Action Network, BankTrack, Indigenous Environmental Network, Oil Change International, Reclaim Finance, Sierra Club, and Urgewald, analyzes pledges made by the world’s 60 largest private banks to achieve net zero emissions and commitments to enact restrictions on petroleum and coal finance. (April 2022)

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A new assessment by thinktank InfluenceMap of the 30 largest publicly traded financial companies asserts misalignment between stated climate goals and short-term roadmaps and milestones required to meet a 1.5 °C climate scenario. (March 2022)

Just one-third have set meaningful 2030 targets for reducing greenhouse gas emissions across sectors, with BNP Paribas, AXA and Allianz noted for taking “mostly ambitious positions” in their sustainable finance efforts.
All 30 assessed companies are members of industry associations opposing evolving climate finance policies in the EU, UK, and US, with 15 maintaining membership in industry associations which have lobbied in line with fossil fuel interests.
Together they enabled at least $740 billion in primary financing to the fossil fuel production value chain in 2020 and 2021, contradicting guidance from the IPCC and IEA.
The asset manager sector was also assessed and revealed a similar disconnect, with shareholdings in fossil fuel production value chain companies in the amount of at least $222 billion, equivalent to 5% of total AUM assessed.

Full Report | Bloomberg

Nonprofit organization Reclaim Finance in collaboration with 15 environmental NGOs launched a first-of-its-kind “Oil and Gas Policy Tracker” (OGPT) to assess the oil and gas exclusion policies of top global financial institutions (60 banks, 30 insurers and 60 investors), looking at three key indicators: restrictions on new oil and gas projects, restrictions on companies developing new oil and gas projects, and strategies to phase out oil and gas. The tracker finds that more than half of the companies analyzed have no policies governing their oil-and-gas business, and points to flaws in existing policies that appear to contradict the IEA’s 1.5°C pathway. (March 2022)

Press Release | Tracker Website | Bloomberg

New analysis by Clarity AI, a sustainability data technology platform part-owned by CEF member BlackRock, shows that only 3.6% of revenues generated by a sample of 31,000 equity funds globally are “green” as defined in the EU taxonomy (revenues that contribute to climate change mitigation). The same report shows that only 7% of those funds have green revenues in excess of 10%. (March 2022)

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Companies across 30 “sustainable” sectors borrowed a record $47.6 billion through equity issuance in 2021—up from a record $33.25 billion in 2020, according to Refinitiv Eikon data. US companies raised the lion's share of equity, $26.6 billion, and Rivian Automotive raised more than any other firm globally through its $13.7 billion IPO. (Jan 2022)

$91 billion will be invested in the global nuclear sector by the end of 2023 (up from $44 billion in 2021), according to Rystad Energy. 52 reactors that will deliver 54 gigawatts of new installed capacity are currently under construction in 19 countries worldwide. (Jan 2022)

Over $1.6 trillion of sustainable debt was issued in 2021—more than double the amount at year-end 2020, according to BloombergNEF. Total global sustainable debt issuance now stands at over $4 trillion, with green bonds accounting for 45%, including $620 billion issued in 2021 alone. (Jan 2022)

List of Market Trends & Indicators: ESG & Investment, 2021-2019 (PDF)

Adaptation & Resilience Finance

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Investing in Climate Resilience: Unlocking a Growing Market of Adaptation Solutions (Global Adaptation and Resilience Investment Group (GARI)) — This investor report and toolkit highlight climate resilience and adaptation solutions, not as a cost but as a growth industry to invest in. It explores over 800 publicly traded companies focused on resilience and how to incorporate resilience into investment product design. Along with making the case for resilience, it introduces a new framework, Climate Resilience Investments in Solutions Principles (CRISP), to determine resilience-focused companies’ growth potential. It finds that 42% of resilience-focused companies are in the industrial sector, and 28% are U.S.-based. A third of investable companies are in emerging markets, where communities are generally more at risk from climate change impacts, making the case that investing here can also advance equity and environmental justice considerations. (March 2024)

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Climate Finance

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Pegasus Guidelines for the Aviation Sector (RMI) — This first-of-its-kind voluntary climate-aligned finance framework for the aviation sector is designed to help banks independently measure and disclose the emissions intensity and/or the climate alignment of their aviation lending portfolios compared to a 1.5°C scenario. It is compatible with the Net-Zero Banking Alliance’s guidelines and will be utilized by seven banks (five of which cooperated with the framework’s development), and two additional banks will test implementation of the methodology. (April 2024)

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The Carbon Bankroll 2.0 (Topo Finance) — Details how companies’ financial management can be both their largest source of emissions and a powerful lever of climate action. Nonfinancial companies in the U.S. cumulatively hold about $7 trillion in cash and investments, with the total indirect emissions enabled by this representing an estimated 20% of the U.S.’s total gross emissions. Anywhere from 20-30% of a company’s cash and investments unknowingly fund carbon-intensive industries, which can increase their carbon emissions by a significant percentage (up to 1,058% in one case). The report provides several case studies of companies that have reorganized their banking and cash management strategies to reduce financed emissions. It then provides a seven-step guide on how to leverage their banking and investing to drive climate progress (see p. 40). (April 2024)

PR » GREENBIZ »

Glasgow Financial Alliance for Net Zero (GFANZ) — Announced two new initiatives to scale climate transition finance in Brazil. First, in cooperation with the Brazilian Development Bank, GFANZ will develop a platform to advance a green growth agenda for Brazil. This will seek public, private, and international finance to support climate transition projects. Second, the first GFANZ country chapter in the Latin America and Caribbean region will be established, convening Brazil-based financial actors to increase collaboration on climate finance. (March 2024)

BLOOMBERG »

IIGCC Discussion Paper: Investor approaches to scope 3 (Institutional Investors Group on Climate Change (IIGCC)) — Discusses the importance and complexity of addressing Scope 3 emissions within investment portfolios, along with barriers and data limitations. The paper, drawing on IIGCC’s Scope 3 working group discussions, proposes a theory of change for investors to take Scope 3 emissions of their investments into their net zero approaches at a portfolio level. Specifically, the paper highlights the necessity of this (to prevent outsourcing emissions), and the value of Scope 3 emissions both as an indicator of a company’s contribution to climate change and as a “good proxy for transition risk.” It also suggests focusing on those categories that are most material to a company’s footprint, which can also help guide actions required to decarbonize. (Feb 2024)

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The UAE announced a $30 billion commitment to ALTÉRRA, a new climate vehicle with an emphasis on improving access to funding for the Global South. The funding makes ALTÉRRA the world’s largest private investment vehicle for climate change action. ALTÉRRA is also working with CEF members Blackrock and TPG, as well as Brookfield, to allocate the initial $6.5 billion in climate commitments. (Dec 2023)

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ABU DHABI GLOBAL MARKET (ADGM) —Launched the Global Climate Finance Centre (GCFC), which will accelerate the development of climate finance frameworks and champion best practices in the UAE and globally. The GCFC, an independent and private sector-focused global climate finance think tank, aims to address key barriers that hinder investment flows. GCFC's three core functions will be research, policy and innovation; advisory and stakeholder engagement; and capacity building through the Climate Finance Academy. Founding members include CEF member BlackRock. (Dec 2023)

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Sustainable Aluminum Finance Framework (Rocky Mountain Institute (RMI)) — This open-source reporting framework is designed to provide banks with tools to measure, benchmark, and disclose the climate alignment of their aluminum lending portfolios in line with a 1.5°C scenario. It enables banks to assess their portfolios and work with their clients to report emissions, fund lower-carbon solutions, and support investments in new technologies. The framework includes reporting requirements, the methodology, and 1.5°C-aligned roadmaps. (Dec 2023)

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Global Landscape of Climate Finance 2023 (Climate Policy Initiative) — Average annual climate finance flows reached $1,265 billion in 2021/2022, nearly doubling compared to 2019/2020 levels ($653 billion), according to this new report. This increase was primarily driven by a significant acceleration in mitigation finance (up by $439 billion from 2019/2020), with much of the rest of the growth coming from methodological improvements ($173 billion). Currently, flows represent about 1% of global GDP. Energy and transport attracted the majority of finance (44% and 29% respectively). Regionally, East Asia and the Pacific, the U.S. and Canada, and Western Europe accounted for 84% of total climate finance. According to the report, to achieve a climate transition (and avoid costly climate losses), climate finance must increase to at least $8.1-9 trillion through 2030 and to over $10 trillion each year from 2031 to 2050. (Nov 2023)

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Finance needs of developing countries for climate adaptation are estimated to range from $215 billion to $387 billion per year until 2030, a 50% increase over the previous range estimate, according to UNEP’s Adaptation Gap Report 2023. However, public multilateral and bilateral adaptation finance declined 15% to $21 billion in 2021, despite pledges to increase adaptation funding to around $40 billion a year by 2025. The report also describes seven ways to close this adaptation gap, including increasing international adaptation finance, mobilizing private investments, and increasing financing for SMEs (Small and Medium Enterprises). (Nov 2023)

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Guidelines for Financial Institutions on Transition Planning for a Net Zero Economy (Monetary Authority of Singapore (MAS)) — This set of consultation papers proposes guidelines on transition planning by banks, insurers, and asset managers to enable the global transition to a net zero economy. The papers set out MAS’ supervisory expectations for financial institutions (FIs) to have a sound transition planning process to enable effective climate change mitigation and adaptation. Key expectations include: 1) Engagement rather than divestment; 2) A multi-year approach; 3) A holistic treatment of risk; 4) Considering environmental risks beyond climate in planning; and 5) Transparency to support accountability and promote credibility. Interested parties can submit comments on the proposals until 18 December 2023. (October 2023)

ESG TODAY »

Greening Cash Action Guide (Exponential Roadmap Initiative) — Provides ways for companies to estimate and reduce emissions from their cash holdings. The guidance offers seven actions including: 1) Obtain executive support; 2) Gather bank data; 3) Calculate the carbon footprint of your cash; 4) Talk to your banks; 5) Prioritize green cash management; 6) Shift money to climate-friendly banks; and 7) Create and share targets, plans, and progress. (Sept 2023)

Decarbonizing U.S. Gas Distribution: An Investor Guide (Ceres) — Provides guidance for investors to influence and support utilities in decarbonizing the gas distribution industry. The report finds that 1) Electrification offers opportunities for deploying capital in generation, transmission, distribution, storage, and appliances; 2) Electrification and efficiency are the most viable strategies for aligning with the 1.5°C target; 3) Renewable natural gas (RNG) and hydrogen pathways lack economic viability at the scale needed to contribute substantially to a 1.5°C goal; 4) Deep hybrid electrification is an effective interim solution because it harmonizes electric grid congestion, averting costly capacity upgrades; and 5) Decarbonization plans must prioritize economic justice and equity, ensuring customer access and affordability. (Sept 2023)

Financing Clean Energy in Africa (International Energy Agency and African Development Bank Group) — Calls for improving access to capital and easing financing costs to stimulate clean energy spending in Africa (which currently makes up only 2% of global totals). The cost of capital for utility-scale clean energy projects in Africa is 2-3 times higher than in advanced economies, the report finds. Delivering modern energy to all Africans will require nearly $25 billion in spending per year to 2030 and will require finance designed for small-scale projects that serve low-income rural people. Innovative financing measures including concessional finance will be needed. Concessional finance of around $28 billion per year could unlock to $90 billion in private sector investment by 2030. (Sept 2023)

Making Nature Markets Work (Taskforce on Nature Markets) — This report sets out seven recommendations to embed nature and equity goals into global financial activity to help deliver more equitable, nature positive markets that support the transition to a post-carbon economy. These include (Aug 2023):

Align financial, monetary, and trade rules with the imperative of advancing an equitable global nature economy.
Require central banks to ensure that financial market actions are aligned with policy commitments on nature and climate.
Align public finance with international nature commitments.
Make food commodity markets accountable, mandating full traceability and enhanced transparency.
Secure improved economic benefits for nature stewards, including Indigenous Peoples and local communities.
Reduce the incidence and impact of nature crimes by establishing a requirement for investors and financiers to demonstrate a nature-crime free value chain.
Create a universal agreement to measure the overall state of nature and ensure the data is publicly available to avoid greenwashing.

Data as the Key: Essential Steps for Decarbonizing Private Equity (Ceres) — Explores strategies and practices used by private equity general partners (GPs) and limited partners (LPs) to collect and report data on greenhouse gas emissions of portfolio companies. Private equity represents 10% of the combined market cap value of public and private companies in the U.S. The report addresses how private equity investors engage with portfolio companies, methods for sourcing emissions data, expectations regarding what data to report, and how to enhance dialogue between GPs and LPs. It recommends steps to improve data collection and sharing, including (May 2023):

Develop a process for prioritizing companies to engage with;
Evaluate the climate expertise of portfolio companies;
Report Scope 1 and Scope 2 emissions to limited partners at the portfolio company level annually;
Report Scope 3 data as portfolio companies improve data gathering;
Use the emissions reporting template as a basis for dialogue between LPs and GPs;
Consider using one of the 18 carbon accounting tools described in detail in the report.

STATE STREET —Launched the State Street Carbon Asset Servicing Solution to provide asset managers and financial services institutions the ability to integrate carbon-related assets into their portfolios, including both existing ESG and non-ESG portfolios, and to more easily trade them. The Solution provides a range of fund administration and depositary services, including recordkeeping, Net Asset Value calculation, reporting and other oversight functions. (May 2023)

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2023 Global Climate Survey (Robeco) — Investigates how investors are approaching the opportunities and risks associated with climate change. This third annual survey covers 300 of the world’s largest institutional and wholesale investors in Europe, North America, Asia-Pacific and South Africa, representing a total of around $27.4 trillion in assets under management. Key findings include (April 2023):

More investors have made, or are in the process of making, a public commitment to net zero by 2050 (48% compared to 45% in 2022);
55% have assessed the impact of their portfolios on carbon emissions, though only 20% have measured scope 3 emissions;
And 29% have adopted or will adopt climate-tilted benchmarks over the next year;
Biodiversity is becoming a majority concern, with 48% of investors saying it is important or central to their investment policy (a number projected to increase to 66% over the next two years);
The lack of suitable data and ratings are impeding integrating biodiversity (for 53% of respondents), and just 25% of investors are currently using funds specifically targeting biodiversity goals, though demand for impact funds grew to 60% this year;
While in North America 47% of investors are concerned about increasing political and legal resistance to ESG (compared to 30% in Europe), the majority of European investors (63%) are more concerned about political pressure for failing to act on ESG (compared to 40% in North America).

Just 7% of global banks’ energy financing ($178 billion out of $2.5 trillion) went to renewables between 2016 and 2022, according to new data covering 60 of the world’s largest lenders and 377 energy firms. The data showed that while total renewable energy funding has grown from $23.2 billion in 2016 to a high of $34.6 billion in 2021, fossil fuel funding has increased too, keeping the share of financing around the same share. The data also revealed that banks that are members of Glasgow Financial Alliance for Net Zero actually provided less financing for renewable energy, on average, than their counterparts that are not in the alliance. (Jan 2023)

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Financial innovation for SME net zero transition: Role of banks and buyers — The University of Cambridge Institute for Sustainability Leadership and others published a new report highlighting the role of commercial banks and multinational corporations in helping small and medium sized businesses (SMEs) reach net zero. The report specifically explores several ways to help including (Jan 2023):

Creating a climate readiness classification process that provides SMEs appropriately calibrated transition resources;
Establishing a centralized, shared ESG/emissions data repository to help facilitate and incentivize SME reporting;
Creating SME decarbonization roadmaps and benchmarks to incentivize behavior change;
And setting up a marketplace to provide net zero transition support services for SMEs.

Advance — The Principles of Responsible Investment (PRI) launched Advance, a collaborative stewardship initiative made up more than 220 investors collectively representing $30 trillion in assets under management. 120 of these will take active roles leading or supporting engagement with 40 initial focus companies across both the mining and metals sectors and the renewables sector. For the first time, PRI is publishing the list of investors engaging each of the focus companies. (Dec 2022)

Net-Zero Asset Owner Alliance — Released a call to action to asset owners and index providers on the Development and Uptake of Net-Zero-Aligned Benchmarks. Recognizing that benchmarks are a crucial tool for integrating decarbonization objectives into the investment process, the alliance is calling on index providers to develop net-zero-aligned benchmarks and on asset owners to apply them. The call includes ten key benchmark development principles, including avoiding mechanical exclusions of high-emitting sectors, including forward-looking indicators, and incorporating metrics for a just transition. (Nov 2022)

Bloomberg Philanthropies announced a two-pronged approach to expand its mission of moving the world beyond coal. First, Bloomberg Philanthropies will work with national and local governments across the Global South to develop energy transition plans, implement the necessary public policies, and provide the skills and training to accelerate clean energy development and phase out fossil fuel use. Second, the foundation will partner with GFANZ to help mobilize the flow of private capital to clean energy transition projects in emerging markets and developing countries. (Nov 2022)

A report from the Independent High-Level Expert Group on Climate Finance commissioned by Egypt and the UK (the current and previous COP summit host countries) found that emerging markets and developing countries will need $1 trillion annually in external climate finance by 2030 and match that with their own funds. The biggest increase should come from the private sector; concessional finance from rich country governments should double; and finance from development banks should triple. (Nov 2022)

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Glasgow Financial Alliance for Net Zero (GFANZ) — Released its recommended pan-sector framework for Financial Institution Net-Zero Transition Planning, and voluntary guidance on measuring portfolio alignment. This includes four aspects of enabling “transition finance,” including investing in climate solutions, in business models aligned with net zero, and in companies in the process of aligning, and a managed phase-out of high-emitting assets that will become stranded. GFANZ also issued a Call to Action to G20 governments to publish more robust transition plans with sector-specific strategies and provide clarity on the policies that would be enacted to support them. (Nov 2022)

The Glasgow Financial Alliance for Net Zero (GFANZ) — Announced the alliance’s growth of over 100 new members since COP26 to over 550 total members, and that members have released 250 net-zero targets as of October 2022. GFANZ will also no longer require its signatories to commit to the UN’s climate action campaign, Race to Zero, according to a GFANZ statement provided to ESG Today. (Oct 2022)

Think Tank Universal Owner published a new report, Failure by Design, which argues that the Net Zero Asset Managers Initiative (NZAMI) is broken. According to the report, NZAMI, which aims for a 15-26% cut in emissions in members’ portfolios by 2030, is filled with enough loopholes that average pledges are much lower. The report notes that NZAMI allows asset managers to choose what percentage of their assets under management to apply targets to (from 0.5% to 100%). But with carbon-heavy sectors responsible for most emissions, the vast majority of portfolio emissions could be excluded if these aren't included in the target. The report concludes that targets must reflect the emissions profile of the investor’s entire portfolio and that targets must be backed up by material steps to achieve net zero. (Oct 2022)

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Net Zero Investor Playbook — An open-source resource from the Investor Leadership Network that offers institutional investors a synopsis of current approaches, methodologies, and frameworks to help implement net zero transition programs. Insights are categorized into four themes: (1) Portfolio emissions forecasting and target setting; (2) Alignment with broader portfolio construction and risk parameters; (3) Portfolio transition taxonomies; and (4) Portfolio holdings’ transition capacity metrics. (Oct 2022)
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ASIA TRANSITION FINANCE STUDY GROUP — A study group of several private financial institutions laid out guidelines for financing low-carbon technologies and energy transition projects in Asia to help combat climate change. The guidelines recommended transition technologies based on emissions levels, supply availability, and cost. The group was led by Mitsubishi UFJ Financial Group and included banks with operations in Asia, including Citigroup, HSBC, and Barclays. (Oct 2022)

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Glasgow Financial Alliance for Net Zero (GFANZ) — The world’s largest coalition of financial institutions committed to a net-zero economy is seeking feedback on proposed new and enhanced guidance on measuring the alignment of financial institutions’ investments, lending, and underwriting activities with their net-zero commitments. The public consultation runs until September 12, 2022. (Aug 2022)

Aluminum Climate-Aligned Finance Working Group, a new collaboration by the three top lenders to the aluminum sector—Citi, ING, and Societe Generale—in partnership with RMI’s Center for Climate-Aligned Finance, will create a shared climate-aligned finance (CAF) framework that defines how lenders can support the decarbonization of the aluminum sector and measure progress toward that goal. By signing up to the CAF framework, participating financial institutions will commit to assessing and disclosing the degree to which the emissions associated with their aluminum portfolios are in line with 1.5°C climate targets — and to do so in accordance with the guidelines set forth by the UN-convened Net-Zero Banking Alliance. (June 2022)

Responsible investment NGO ShareAction claims that Climate Action 100+ (CA100+)—an investor-led initiative to ensure world’s largest GHG emitters take necessary action on climate change—is failing to achieve its mission and needs to correct course. In a new report, ShareAction analyzed the engagement-related reporting of 60 of the initiative’s biggest signatories and provided the following recommendations to CA100+ (May 2022):

Set minimum transparency requirements on climate change policies and require investor participants to commit to them.
Set minimum escalation expectations for engagements undertaken via CA100+ and require investor participants to commit to them.
Publish and maintain a list of lead and collaborating investors for each of CA100+’s 167 focus companies.
Publish and maintain a list of engagement objectives and milestones for each focus company.
Publish aggregated statistics on engagement activities and outcomes against the CA100+ Net Zero Company Benchmark accompanied by detailed case studies on engagement with each focus company in annual progress reporting.

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“Creating Value through Sustainability in Private Markets” (World Economic Forum) – A whitepaper, following a study with Boston Consulting Group, that offers a five-step framework private equity can use to ensure their investments are “driving sustainable change.” (April 2022)

Climate Action 100+ — Published an updated aviation sector strategy: “Global Sector Strategies: Investor Actions to Align the Aviation Sector With the IEA’s 1.5°C Decarbonisation Pathway.” It concludes that emissions must peak by 2025, and 18% of the sector’s energy consumption must come from sustainable aviation fuel (SAF) by 2030 (up from less than 0.1% in 2020). (March 2022)

TPI Sectoral Decarbonisation Pathways (Transition Pathway Initiative, TPI) — A new report synthesizing the decarbonization pathways TPI has developed for 10 high-emitting sectors over the last five years to help investors assess how their portfolio companies align with Paris Agreement goals. The pathways allocate an absolute, economy-wide emissions budget for each sector and cover the majority of lifecycle emissions. Most pathways include three scenarios derived from the IEA (1.5°C Degrees, 2 Degrees, and National Pledges) and an intensity metric to enable company comparisons. (Feb 2022)

UN-convened Net-Zero Asset Owner Alliance — Released the second edition of its Target Setting Protocol, which was expanded to include the infrastructure asset class and seven additional sectors (e.g., agriculture, chemicals, water). The Alliance calls on asset managers to (Jan 2022):

Reduce absolute emissions by 22-32% from 2020-2025 (up from 16-29% by 2025 in the first edition) and by at least 49-65% from 2020-2030
Set emissions-reduction targets for infrastructure assets in carbon-intensive sectors where they have over 20% ownership or a board seat
Publicly commit to supporting the net-zero transition and commit their whole portfolio to 1.5°C degrees of warming and net-zero by 2050

List of Climate Finance, 2021-2019 (PDF)

Equality & Inclusion Finance

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Investor Blueprint for Racial and Economic Equity (PolicyLink) — Aims to catalyze investors to integrate racial and economic equity holistically within their institutions, from their purpose to their decision-making processes, investment strategies, and measures of organizational effectiveness. After establishing the case for advancing equity, the blueprint shares three key levers to do so: Strengthening firm governance and culture; building equitable portfolios; and reevaluating risk on multiple levels, including recognizing inequality as a systemic risk to markets. Within these three categories, the report explores 14 practical actions for investors to undertake with guidance, resources, and key performance indicators to support execution. (March 2023)

Inclusive Insurance for Climate-Related Disasters (Ceres) — Examines the role of insurance in recovery from climate disaster across socioeconomic groups in the U.S. The report provides actionable guidance for federal, state, local leaders, and insurers, to expand the financial protection of insurance markets and make disaster insurance more affordable, accessible, and inclusive. Notable actions includes: subsidizing disaster insurance for low-income households; creating a Community Reinvestment Act for insurance; reforming claims contestation procedures; establishing baseline coverage standards; and providing transparent discounts for disaster mitigation. A webinar will explore the findings further on February 22 at 1pm ET. (Jan 2023)

TPG — Announced the launch of the inaugural TPG NEXT fund, which will back the next generation of underrepresented alternative asset managers. The fund is being anchored with a $500 million commitment from the California Public Employees’ Retirement System (CalPERS) and aims to increase the number of diverse-led firms in alternative assets, bringing the industry into closer alignment with broader demographic trends. (Jan 2023)

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AMAZON / USAID — Launched a public-private partnership to boost climate funding for women. Amazon will commit $50 million to USAID’s Climate Gender Equity Fund, a new climate finance facility designed to remove systemic market barriers that prevent women and girls from accessing climate finance. The Fund will provide grants globally to businesses and organizations working on women-led climate solutions. (Nov 2022)

The Long-term Investors in People’s Health Initiative (LIPH) — 35 investors managing $5.7 trillion have formed a new alliance committed to building healthier, fairer societies. LIPH will provide investors with a list of best practice approaches and opportunities to collaborate on corporate engagement. Signatories are asked to commit to embed health into their ESG policies and practices and use their influence to improve health outcomes. Investors and asset managers can learn how to join here. (Oct 2022)

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CFA Institute launched a voluntary Diversity, Equity, and Inclusion Code (USA and Canada) (“DEI Code”) to drive DEI action among investment institutions in the U.S. and Canada. Signatories commit to a set of core principles (Pipeline, Talent Acquisition, Promotion and Retention, Leadership, Influence, Measurement). CFA Institute plans to publish regional DEI Codes with tailored guidance, followed by a global code. (Feb 2022)

Diversity, Equity & Inclusion: Key Action Areas for Investors (Principles for Responsible Investment) — Calls on investors to integrate diversity, equity, and inclusion (DEI) into their investment and ownership decisions, and to expand the focus of DEI efforts beyond gender and diversity to issues such as inclusion and equity. It highlights business and investment benefits of addressing DEI issues and offers actions for investors to pursue across three key areas: inclusive corporate cultures, inclusive business models, and inclusive societies. (Feb 2022)

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The Gender-Smart Climate Finance Guide (2X Climate Finance Taskforce / 2X Collaborative) —A new guide to help investors identify investment opportunities in 11 sectors that support climate change mitigation or climate adaptation while promoting gender equality. (Nov 2021)
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SDGs Finance

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BLOOMBERG — Launched a first-of-its-kind tool investors can use to assess the potential impact of a company’s activities on the United Nations’ 17 Sustainable Development Goals (SDGs). Integrated into Bloomberg’s ESG data offerings, this resource maps more than 500 sectoral activities to 38 impact topics and the SDGs, distinguishing between positive and negative impacts companies have on the environment, people, and economic development. (Dec 2023)

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Capital as a Force for Good: Capitalism for a Sustainable Future (Force for Good Initiative) — Concludes that the UN SDGs have a financing gap of $100 trillion and will likely be missed unless 10% of global economic output is directed toward the goals each year till 2030. (Sept 2021)
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ESG Data Hub (NASDAQ) — Connects investors with ESG data sets on biodiversity, gender diversity, carbon emissions, green bonds, and more from 7 global providers—including Munich Re, Cleantech Group, and Equileap—with the aim of improving ESG disclosure. All data is connected to the U.N. SDGs, and the portal allows investors to generate allocation and impact reports, and to find new sustainable investments. (July 2021)
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World Investment Report 2021: Investing in Sustainable Recovery (UNCTAD) — Reports COVID-19 has caused a crash in investment flows to SDG-relevant sectors in developing countries, with all but one of those sectors showing a double-digit decline from pre-COVID levels. Identifies global and regional investment trends, and national and international policy developments, and provides recommendations for policymakers and the international development community to promote investment in a sustainable recovery. (June 2021)

Invest NYC SDG Finance: Models for Financing the UN Sustainable Development Goals (Cary Krosinsky and Ella Warshauer) — Provides insight into financing models of 6 SDGs areas—built environment, sustainable mobility, renewable energy, waste, food & health, and resilience. Finds varying levels of investment and innovative finance in each area, ranging from public and private sources, separated into 3 categories: 1) areas with sufficient innovative financing mechanisms that now require scaling up – the built environment and renewable energy; 2) areas with emerging investment solutions, but pathways to scalability that are yet unclear – food and health and waste; and 3) areas lacking sufficient financing, where a larger vision is required to make meaningful progress – sustainable mobility and climate resilience. (March 2021)

“Scaling SDG Finance for the Sustainable Development Goals” (UN Global Compact) offers guidance to companies seeking options for scaling their positive impact on the SDGs through sustainable financing. The report highlights three areas of opportunity: foreign direct investment, financial intermediation, and public-private partnerships.

“Global Corporate Green Investment and the UN Sustainable Development Goals” (Corporate Knights and Climate Bond Initiative) finds that 7,000 of the world’s largest non-financial sector corporations collectively made $611 billion in green investments in 2017. The report also finds that the green component of this collective investment needs to increase from $611 billion (17% of the total) to about $1.07 trillion (28% of the total) in order to reach “SDG Alignment.” (2019)

“Financing the Sustainable Development Goals: Impact Investing in Action” (Global Impact Investing Network, 2018) features case studies that showcase how impact investors are raising and directing capital to help meet the United Nations’ Sustainable Development Goals (SDGs) by 2030. The case studies feature the following investors: Blue like an Orange Capital, Incofin Investment Management, The Mirova Land Degradation Neutrality Fund project, PGGM, and Partners Group.

Green Bonds

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Sustainability-Linked Bonds: Building a High-Quality Market (Climate Bonds Initiative) — This first of its kind report assesses the $279 billion Sustainability-Linked Bonds (SLBs) market, including scope, performance, and sustainability alignment. 768 SLBs were issued from December 2018 to November 2023, with only 14% (representing 17% of amount issued) being aligned with the Paris Agreement (well below 2°C). In 2023, this percentage improved, with a third of SLBs issued aligned with global climate goals. 59% of SLBs used only one key performance indicator (most often climate change), and none used more than four. Three sectors issued 41% of SLBs: utilities, industrials, and agriculture & food. Of the SLBs sampled, 12% have targets currently met (almost all of which with observation dates up to 2025). Target feasibility also varied widely (with some with targets that are just a slight improvement, which the report calls “clear examples of greenwashing”). The report concludes with a best practices checklist for SLB issuance (pp. 27-28). (April 2024)

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The issuance of global green bonds reached a record high of $351 billion in the first six months of 2023. More broadly, sustainable bond products raised $568 billion during that same period. Europe was the largest green bond market with 448 of the 935 green bonds issued there, raising $190 billion. Sustainability-linked bonds (SLBs), however, saw reduced issuance in 2023, with the lowest value of SLB issuances in Q2 since Q4 of 2020, due to increased investor scrutiny. (July 2023)

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Bloomberg News analyzed more than 100 sustainability-linked bonds (SLBs) worth almost €70 billion sold by global companies to investors in Europe—the most mature market for sustainable finance products—and found that the majority are tied to climate targets that are weak, irrelevant, or even already achieved. The researchers argue that companies are getting cheaper financing and an enhanced green reputation with no additional effort. This is especially concerning as SLBs make up a growing share of the bond market (81% in 2021 and 96% so far in 2022). (Oct 2022)

The Climate Bonds Standard and Certification Scheme is expanding to certify non-financial corporates and Sustainability-Linked Bonds (SLBs) issued by non-financial corporates. This new Climate Bond Standard enables corporates aligned with 1.5°C pathways, and those that will be by 2030, to be certified under the standard. Specifically that means corporates with emissions already “near zero,” and those that are not “so long as the corporate has suitably Ambitious Performance Targets and Credible Transition Plans.” The Climate Bonds Initiative has also started screening all SLBs issued in the market and will release a database of those aligned with a 1.5°C transition. Proposals for this Standard expansion are open for public consultation and feedback can be provided here until November 4, 2022. (Sept 2022)

Bloomberg has found that green bond issuance is remaining relatively stable compared to conventional bonds, having shrunk only 3% compared to 19%, despite underperforming traditional issues in the first six months of 2022. (Aug 2022)

Global green financing, comprised mostly of green bonds/loans and equity funding through IPOs targeting green projects, has grown over 100 times in the past decade, a new study from the TheCityUK and BNP Paribas showed. The share of green finance in the total finance market grew 40 times during that same period, standing at about 4% by 2021. (April 2022)

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The Climate Investment Funds ’ (CIF) Clean Technology Fund (CTF) unveiled a new Capital Market Mechanism that would “issue investment-grade bonds and raise significant new finance for scaling clean energy and sustainable infrastructure in emerging economies.” The mechanism—backed by the U.S., the U.K., and others—could mobilize $500 million of additional concessional capital for developing countries each year, resulting in an estimated total investment of $50 billion over 10 years. (Nov 2021)
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Over a quarter of 70 sustainability-linked term loans and revolving credit lines arranged in the U.S. since 2018 have no penalty for failing to meet stated goals and have only a one basis-point incentive for goals met, according to a new Bloomberg analysis. (Sept 2021)
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Sales of solar bonds hit almost $2 billion in the first half of the year, a record amount and nearly double the sales from the same period in 2020 and 2019, according to Finsight.com. (Sept 2021)

Issuance of sustainability-linked, “green, social and sustainability,” and transition bonds reached $496 billion in the first half of 2021, a 59% growth over the same period in 2020, according to the Climate Bonds Initiative “Sustainable Debt Market Summary.” (Sept 2021)

Sustainability-linked loan issuance reached $350 billion in the first 6 months of 2021, compared with $197 billion in all of 2020, according to SPG Global. The loans outpaced issuance of green bonds ($202 billion) and green loans ($42 billion). (Aug 2021)

Global sustainable debt issuance is on track to pass $1 trillion by year’s end, with green bonds making up the largest share of issuance, according to an Institute of International Finance report. (July 2021)

ESG-linked loan issuance reached $87 billion in the first quarter of 2021, triple that of the same period in 2020, according to Refinitiv. (June 2021)

The issuance of ESG-related bonds in Asia-Pacific has hit a record $69 billion this year, according to Reuters. (June 2021)

The global sustainable bond market surpassed $3 trillion, up from $2 trillion 8 months ago and $1 trillion in 2018, according to Bloomberg.

Banks are on pace to finance—for the first time—more climate-friendly projects than fossil fuels in 2021, according to Bloomberg. 140 global financial institutions have provided at least $203 billion in bonds and loans to renewable projects and other climate-friendly ventures since May 14, compared to $189 billion to oil, gas, and coal projects. Since the Paris Agreement, banks have globally financed $3.6 trillion into fossil fuels—almost 3 times more than “green” bonds and loans. (May 2021)

Sustainable bond volumes (a combination of green, social, and sustainability bonds) achieved new heights in Q1 2021, reaching $231 billion, according to Moody’s.Issuance in the first quarter was 19% higher than the previous quarter and more than tripled the year-over-year comparison. Moody’s estimates sustainable bonds will account for 8-10% of total global debt issuance in 2021. (May 2021)

$73.4 billion of green bond sales were issued globally in March, marking a new all-time monthly high, according to Bloomberg. First-quarter issuance amounted to $149.9 billion, up 186% from the same period in 2020. (April 2021)

Issuance of green, social and sustainability bonds globally is forecast to hit a record high of $300 billion in 2021 (up from $225 billion in 2020), according to Moody's. (March 2021)

Sustainable bond issuance will hit a record high in 2021 totaling $650 billion—32% more than last year, according to Moody’s: $121 billion in sustainability bonds, $375 billion in green bonds, and $150 billion in social bonds. (February 2021)

The Green Bond Principles (GBP), updated as of June 2016, are voluntary process guidelines that recommend transparency and disclosure and promote integrity in the development of the Green Bond market by clarifying the approach for issuance of a Green Bond.

Provide issuers guidance on the key components involved in launching a credible Green Bond
Aid investors by ensuring availability of information necessary to evaluate the environmental impact of their Green Bond investments
Assist underwriters by moving the market towards standard disclosures which will facilitate transactions.

"What are Green Bonds?" (World Bank and PPIAF) provides an introductory overview to help practitioners better understand what green bonds are, how they work, who issues them and who buys them, and the benefits they provide.

Green Bonds 101 CEF webinar: Inspiration and How-to from the Apple and Starbucks Bond Offerings (October 2017) Slides

Evaluating Climate Risk in Investments/ Finance

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Evaluating Natural Capital Risk in Investments/ Finance

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Evaluating Plastic Risk in Investments/ Finance

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Planet Risk: Measuring Risk in the Plastic Sector (Planet Tracker) — Argues that investors are ignoring critical environmental, legal, reputational, and transition risks in the plastics sector. Analysis of equity risk premiums in 150 firms shows the lowest perception of risk in the plastics industry since 2011, despite growing potential for regulatory and legal action. Corporate liabilities and litigation costs in plastics-related issues could rise above $20 billion by end of the decade for the U.S. alone. The study finds that (June 2023):

Plastic company risk registers should include exposure to CO2 emissions, harmful toxic discharges, plastic pollution (for land, sea and air), and chemical additives exposure;
Between 2012 and 2022, 731 plastic pollution policies were introduced worldwide;
Single-use plastic producers are generally seen as the riskiest segment in the plastics value chain, and consumer staples the least;
The popularity of plastics may make the plastic industry appear like an attractive growth story, but it also increases the sector’s regulatory and litigation exposure.

Unwrapping Investor Risk (Planet Tracker) — Analyses 83 of the world's largest publicly traded plastic packaging firms and finds almost two-thirds report no policies on sustainability-related topics like waste or carbon. It also found less than one-tenth of 1% of the 4,175 institutional investors with investments in companies surveyed are members of investor initiatives supporting sustainable plastics initiatives. (April 2021)

Evaluating Transition Plan Risk in Investments/ Finance

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Red Flag Indicators (WWF) — This new tool will help financial supervisors, asset managers and financial institutions evaluate the net-zero transition plans of the companies they are investing in. Using AI technology, the tool helps identify transition plan inconsistencies and possible greenwashing, providing a first screening to “red flag” companies whose transition plans lack ambition, feasibility, and credibility. It is currently under development but a report on the concept is available here. The tool will be pilot tested with a number of companies until December 2023 at which point the results of the testing will be published. (Oct 2023)

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Evaluating Water Risk in Investments/ Finance

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Efforts to Harmonize ESG Reporting, Ratings & Rankings

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Google parent Alphabet, Amazon, Autodesk, eBay, Facebook, Intel, and Salesforce urged the SEC to mandate regular corporate climate-related disclosures. They said the SEC should utilize existing frameworks to ensure disclosure consistency and comparability and that businesses should measure and report relevant GHG by relevant global standards. (June 2021)
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The American Petroleum Institute—which includes ExxonMobil and Chevron—released a new framework to standardize how companies log and report their GHG emissions, and to prompt them to make voluntary, public disclosures. The 5-section template excludes Scope 3 emissions but includes logging data on GHGs emitted from company assets and from the energy companies use, as well as emissions-reduction efforts. Reporting is first expected in 2022. (June 2021)
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Key responses to the Securities and Exchange Commission’s formal request for input on how companies should disclose climate-related risks in regulatory filings (June 2021):

Democratic Sens. Brain Schatz and Sheldon Whitehouse want disclosure of “financed emissions” — (business with fossil fuel companies) — to include “off-balance sheet activities like equity and debt underwriting, as well as advisory work”
BlackRock says the SEC should align mandatory climate-related disclosure with TCFD recommendations and sector-specific recommendations, and that reporting on Scope 3 emissions “may require a phased approach”
The American Petroleum Institute calls for the SEC to provide liability protections typically given to businesses’ forward-looking statements, urges the commission to consider compliance costs to small- and mid-size companies, and warns against an overly wide definition of “material” disclosures
The National Association of Manufacturers calls for reporting requirements to focus on metrics “financially material to the investors in a specific business”

The Investment Company Institute (ICI), whose members manage total assets of $30.8 trillion, called on the SEC to require mandatory corporate disclosure of direct and indirect GHG emissions data and information on workforce diversity. (June 2021)
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Ceres coordinated a letter signed by 180 investors managing nearly $2.7 trillion in assets, 155 companies, and 58 nonprofits calling on the SEC to develop climate change disclosure rules that are based on TCFD recommendations and include industry-specific metrics, governance and strategy disclosure, emissions disclosure (Scope 1, 2, and 3), and material climate disclosures in financial filings. (June 2021)
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The Taskforce on Climate-related Financial Disclosures (TCFD) opened a public consultation seeking input on proposed guidance for climate-related metrics, financial impacts, targets, and transition plans. The consultation is open until July 7, 2021. (June 2021)
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The Sustainability Accounting Standards Board (SASB) and the International Integrated Reporting Council (IIRC) officially merged to form the "Value Reporting Foundation," seeking to streamline corporate reporting, increase legitimacy around sustainability disclosure standards, and support investor and business decision-making. The foundation plans to work closely with the IFRS Foundation and other leading framework providers to deliver a more coherent corporate reporting system. (June 2021)
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The IFRS Foundation announced Former European Central Bank President Jean-Claude Trichet would lead an advisory group to set up an “International Sustainability Standards Board (ISSB),” to be unveiled ahead of COP26. (June 2021)
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Finance Ministers and Central Bank Governors from all G7 nations announced support for mandatory climate-related financial disclosures consistent with the TCFD framework and for the IFRS Foundation’s efforts to create an International Sustainability Standards Board. (June 2021)
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The Responsible Business Alliance’s Responsible Minerals Initiative released ESG Standards for all mineral supply chains. The new standards include environmental criteria, occupational health and safety provisions, social obligations, and governance requirements. (June 2021)
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The Taskforce on Nature-Related Financial Disclosures launched as a new global initiative to deliver a framework by 2023 for companies to report and act on evolving nature-related risks. The Taskforce is co-chaired by David Craig, CEO of Refinitiv and Group Leader of Data & Analytics Division at London Stock Exchange Group, and Elizabeth Maruma Mrema, Executive Secretary of the UN Convention on Biological Diversity. View the proposed technical scope here. (June 2021)
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International Financial Reporting Standards Foundation (IFRS) launched a public consultation on proposed amendments to the Foundation’s Constitution to accommodate the potential formation and operation of a new “International Sustainability Standards Board” (ISSB). The closing date for public comment is July 29, 2021. (May 2021)

International Financial Reporting Standards Foundation (IFRS) announced a goal to publish its first batch of climate-related company disclosure standards by the middle of 2022. (May 2021)

Salesforce called for mandatory independent third-party-reviewed climate disclosures, covering Scopes 1, 2, and 3 and emission reduction goals. (April 2021)

The Investment Leaders Group—a global network of pension funds, insurers, and asset managers collectively managing $16.9 trillion—proposed a new framework and disclosure method for financial institutions called “temperature scores” to act as a universal measure of climate performance for the industry. (April 2021)
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The European Fund and Asset Management Association (EFAMA), representing 110 members and over $22 trillion in assets, called for European legislators to adopt the European Commission’s Corporate Sustainability Reporting Directive (CSRD) proposal as the mandatory sustainability reporting standard. (April 2021

Apple called for the SEC to “require that companies disclose third-party-audited emissions information to the public, covering all scopes of emissions, direct and indirect, and the value chain.” (April 2021)

Net Zero Investor Framework — New effort produced by the Institutional Investors Group on Climate Change (IIGCC) aiming to provide investors with practical approaches to align portfolios and investments to 1.5 °C net-zero strategies. 37 investors managing $8.5 trillion—including Fidelity and PIMCO—have already begun to use the framework. (March 2021)

A group of five sustainability and integrated reporting organizations — CDP, CDSB, GRI, IIRC, and SASB — released a joint paper (Reporting on Enterprise Value) outlining how their “current frameworks, standards and platforms, along with the elements set out by the TCFD, can be used together to provide a running start for development of global standards that enable disclosure of how sustainability matters create or erode enterprise value.” (Jan 2021)

The International Integrated Reporting Council and the Sustainability Accounting Standards Board announced their intention to merge into a unified organization called the Value Reporting Foundation. The <IR> Framework and SASB Standards “will remain complementary tools,” and the Value Reporting Foundation “will facilitate the use of both together.” (December 2020)

BlackRock published a paper calling for a “convergence of the different private sector reporting frameworks and standards to establish a globally recognized and adopted approach to sustainability reporting.” (November 2020)

The International Financial Reporting Standards (IFRS) Foundation released a Consultation Paper on Sustainability Reporting, which concludes that “there is an urgent need to improve the consistency and comparability in sustainability reporting” and that “diverse approaches and objectives pose the threat of increasing fragmentation globally.” The IFRS Foundation is considering creating a sustainability standards board and becoming a standard-setter in that area. The paper is open for comment until December 31, 2020. (October 2020)

Five global framework- and standard-setting organizations — CDP, CDSB, GRI, IIRC, and SASB — issued a joint statement committing to work together towards more comprehensive corporate reporting. (October 2020)

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Definitions for Responsible Investment Approaches (CFA Institute, Global Sustainable Investment Alliance, and the Principles for Responsible Investment) — This new guidance aims to harmonize responsible investment terminology, providing definitions for five key terms: 1) screening; 2) environmental, social, and governance (ESG) integration; 3) thematic investing; 4) stewardship; and 5) impact investing. Each of the terms includes a definition, essential elements, practical guidance on using the term, and primary references that influenced the definitions. (Nov 2023)

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Evaluating Climate Risk in Investments/ Finance

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See also Natural Capital Risk Assessment (general)

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Evaluating Water Risk in Investments/ Finance

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