As part of a push to improve financial literacy, the Czech consumer credit provider has linked the first ESG loan it has taken out globally – in the Philippines' sustainable debt market – to that goal. Jean Lafontaine, head of funding, treasury, M&A and investor relations, gives the lowdown.
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India’s Adani Group, the world’s largest private developer of fossil fuels, is still securing funding for its Carmichael project in Australia despite investors increasingly withdrawing support and rising negative sentiment against coal. But how long will it be able to do so?
As a growing list of governments tap investor demand for sustainable investments, Capital Monitor analysis shows renewable energy is largely ignored by green bond allocations.
Paris-based NGE raised €500m of sustainability-linked debt, with one of the key performance indicators linked to female representation on construction sites. Executive VP Jean-Sébastien Leoni outlines the company's rationale behind it.
Tokyo wants to become Asia’s top sustainable finance centre by riding the wave of green bond issuance in Japan. That would require a change in the mindset of local investors and an alignment with international norms, not least around its planned taxonomy.
High net worth individuals are increasingly demanding to know precisely how sustainable their portfolios are, but wealth managers have traditionally struggled with the complexity of offering the granular view of ESG metrics such visibility requires. Rodolphe Bocquet of Clarity AI discusses efforts being made to integrate total transparency into one’s models – and the implications of a failure to do so.
In partnership with Clarity AI
Billions of dollars are pouring into the clean energy that is seen as crucial for the transition to net-zero emissions. But the financial sector is not taking sufficient account of what happens to such assets when they reach the end of their life. It may soon have to.
Cement is the first heavy industry to set net-zero emissions targets and wants to see regulation, including a carbon tax, to help achieve those goals. But there are major challenges, including that pollution levels from China's cement sector – the world's biggest – are rising.
A corporate treasurer’s work has historically revolved around cash flow forecasts, but increasingly involves defining sustainability key performance indicators and monitoring ESG data. Miguel Silva Gonzalez of Dutch supermarket giant Ahold Delhaize gives his take.
Singapore's Nanyang Technological University has sold a bond that is only the second of its kind globally. If it misses its targets, the step-up money will go into climate research or carbon offsets, not to investors. Capital Monitor gets the skinny from NTU finance chief Ong Eng Hock.
With investors pushing back on what they see as weak or immaterial claims by issuers of sustainability-linked debt, banks are now citing similar concerns – though they are still arranging deals seen as questionable.
The founder of ClientEarth, James Thornton, explains how the environmental law charity takes on large corporates and governments to tackle climate change.
As one of the more eager issuers of bonds linked to inflation, the UK faces the prospect of higher borrowing costs as high inflation begins to look less temporary than initially expected. Sustainability-linked bonds, relatively new instruments, could provide a long-term antidote.
Often cash-flush and shy of scrutiny, higher education institutions have not typically felt the need or inclination to raise green bonds, despite their suitability for such funding. That is changing, with private placements seen as increasingly popular.
Banks account for around half of the $130trn in private capital Mark Carney said at the Cop26 summit was aligned with net zero, but there is widespread scepticism about the announcement. Senior executives from some of the biggest lenders give Capital Monitor their take.
Capital Monitor research shows that only one in four banks have linked CEO pay to environmental impact metrics, and the ESG targets that have been set often lack transparency and impact – despite growing stakeholder pressure to address such issues.
New Zealand’s state rail and ferry operator is buying two new diesel-electric ferries with the help of the first debt to be certified by the Climate Bonds Initiative. KiwiRail’s move is a step forward in decarbonising the shipping sector and progressing the country’s net-zero emissions goals.
Last month the Japanese bank joined the growing list of its peers pledging to hit net zero by 2050. But how will it achieve that and what will it mean in terms of impact, given the firm derives most of its revenues from wholesale banking and has little exposure to high-carbon sectors?
Three-quarters of European companies have set emission-reduction goals, but details of how they intend to achieve them are lacking, while only one in ten is on track to hit net-zero targets, finds recent research. Pressure is growing on corporates – and regulators – to take more action.
Investors increasingly claim to be incorporating ESG factors into their portfolios. But are they doing so genuinely and for the right reasons, and what should best practice entail in ESG integration? The concept is still vague, with a clear definition some way off.
The EU’s latest review of solvency rules for insurance firms threatens to impose capital charges on polluting assets. But the industry warns that doing so could have unintended consequences and would ultimately not have a positive impact for the environment or society.
Initiatives are under way to build the markets for so-called blue bonds – which finance ocean-related conservation projects – and environmentally related debt swaps. But there are doubts over the scalability of such programmes, despite the huge appetite for sustainable assets.
An Australian parliamentary inquiry into the domestic finance sector’s shift away from coal exposure underlines the government's reputation as a climate policy laggard. But it may inadvertently help boost the country’s sustainable investment industry, argue some market participants.
The Nordic country is a pioneer in carbon taxation and a leader in green bond issuance. Åsa Lindhagen speaks to Capital Monitor about the country's green policies and fostering sustainable development.
With its landmark deal, a South African private healthcare group has saved itself at least 21 basis points in the cost of funding and set a quartet of key performance indicators – three with environmental targets and one focused on patient satisfaction.
Retirement village operator Summerset has inked a landmark sustainability-linked loan related to reductions in carbon emissions and construction waste and, less typically, the development of dementia care. Its domestic peers are also expected to take the green finance path.
CIB is leading the charge among Egypt's banks to build a sustainable finance market, with help from the International Finance Corporation and at the behest of the central bank. Corporates are showing rising interest in issuing green bonds but will face ESG reporting from next year.