Pressure is growing for prudential measures to help tackle the climate crisis, with banks facing a rise in estimated credit losses of up to 20% in a 'hot-house' scenario. But bankers say climate-related stress tests should not lead to more capital requirements, and some propose alternatives.
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.
Frameworks such as the UK’s Senior Managers & Certification Regime may be adapted – and expanded to sectors beyond financial services – to put company directors on the hook for climate-related commitments.
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.
While banks prefer to hire former bankers for ESG jobs, there is a strong demand for individuals with sector-specific, non-financial backgrounds, Capital Monitor analysis reveals.
The US bank recently acquired NN Investment Partners and is offering tools to help clients with their low-carbon transition, says sustainable finance head John Goldstein. But its climate policies and disclosure lag behind industry best practice, though there are plans to remedy that.
Teess – a joint venture between France’s TotalEnergies and Chinese renewables company Envision – will execute the first green-funded project in China’s solar industry as it bets on the country’s energy transition. Capital Monitor takes an in-depth look at the deal.
Lloyds Bank is leading efforts among UK lenders to provide easier access to financial services for the rising number of refugees in the country, most recently from Afghanistan. But they could do a lot more, as France’s BNP Paribas is showing elsewhere.
The idea of incorporating gross national happiness into mainstream economic thought has long been a subject reserved for debating societies and 'lefty' thinkers. As politicians are cornered into taking immediate action on climate change, capitalism is in for a big surprise.
The embattled Swiss bank has cut lending to heavy polluters and is analysing its loan book's carbon intensity and clients' 'transition readiness', but has been slow to set emission-reduction targets. Two of Credit Suisse's top ESG and sustainability executives set out its thinking.
The UK is about to launch its first green sovereign bond programme, which will incorporate innovative social indicators. Senior banking executives expect it to boost the corporate debt market, but want more specifics on impact benchmarking targets and deadlines.
Green short-term funding has struggled to take off as an asset class. With Asia’s first green commercial paper guarantee for Taiwan’s Sing Da Marine Structure, Crédit Agricole hopes that a new wind is blowing.
The British bank is calculating a carbon budget that should lead to an overhaul of its balance sheet. Starting by tightening financing policy for the oil and gas sector, the group will introduce a series of emissions-led sector targets by 2022. A bold move, but critics argue the plans lack clarity.