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.
Most newest results
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.
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.
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.
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.
The landmark financing deal from the country’s biggest supermarket chain aims to reduce both waste and emissions and put more women in leadership roles. Capital Monitor speaks to Coles’ treasurer and CFO as well as bankers on 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 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.
Some car manufacturers have sold green bonds, but Paris-based Valeo is Europe’s first automotive sector company to target carbon emission reduction along the entire manufacturing chain.
Asset managers are labelling more funds as ‘sustainable’ amid accusations of regulator-mandated greenwashing, even as the European Commission’s SFDR update last week did little to clear up confusion over product classification.
The region's healthcare providers have been slow to embrace sustainable funding because it is tricky to set measurable key performance indicators in the sector – but that is changing.
Investor action around UN Sustainable Development Goal 15 – Life on Land – is slow, but it is gathering momentum. We look at how a handful of investors are embracing technology as part of the approach to managing deforestation risk.
The French industrial gas producer achieved a record price for its first green debt issue even as the bond ‘greenium’ has narrowed. This is at least partly thanks to the company’s rising focus on hydrogen.
UN Sustainable Development Goal 15 figures low on investors’ agenda, while their exposure to at-risk forest companies remains high.
A lack of technical guidance on Europe’s SFDR legislation has left asset managers to fill in the gaps, leading to confusion and serious risks of both greenwashing and market fragmentation.
Analysis by Capital Monitor has discovered a small handful of influential investors with significant stakes in companies that dominate the ocean economy. Sadly, improving life below water is not high on many investment agendas.
Rainforest Action Network recently uncovered the levels of financial support still available to the fossil fuel sector. Further digging reveals a troubling relationship between bank policy and financing activity during 2020.