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.
SDG 15: Life on land
A series of forthcoming policy and industry initiatives this year should help banks and asset managers understand and report their impact on nature, but full integration of such risks still looks some way off.
Last year put sustainability accounting and reporting on the map. The next 12 months should see regulators, standard setters and companies taking a closer look at areas like double materiality, Scope 3 emissions and nature-based reporting.
The loss of our forests could prevent the world from meeting the Paris Agreement target of limiting the increase in global temperature to 1.5°C. Over half of global GDP is covered by a national net-zero target, yet it is questionable whether any of these targets will be met without significant progress on deforestation.
For natural resources such as air, water and soil to be regulated, there needs to be a way of valuing them. Governments are grappling with this issue as investors focus increasingly on SDG 15: Life on Land.
The German lender is turning down more deals that do not satisfy its increasingly strict sustainability criteria. But it still faces criticism for its financing of high-carbon industries.
Asia's two main finance hubs are moving quickly to adopt global best practice on sustainable finance. They recognise policy certainty in this area is necessary to drive investment into companies, particularly given the region's distinct characteristics.
The Togo-based group expects its debut sustainable bond and new sustainable finance framework to help it adopt a more climate-friendly strategy and expand SDG-aligned funding across the continent, says chief risk officer Eric Odhiambo.
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.
Small steps maybe, but early-stage investment into tech companies linked to SDG 15 – Life on Land – is shooting up. Good news for institutional investors complaining about the lack of infrastructure to support investment policies around biodiversity.