ESG in Conversation

What’s Happening in Sustainable Finance: Innovation is the Name of the Game


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Episode Summary
Hosts
  • Nicholas Gandolfo, Director, Corporate Solutions
  • Marika Stocker, Senior Manager, Corporate Solutions
  • The recurring theme in this episode’s round up of market developments is innovation! Nick also offers a list of recommended reading for the month (be prepared, it’s a long one) and concludes the tale of his encounter with an elephant in Bangladesh first mentioned in October’s episode.

    Innovation is the Name of the Game in Sustainable Finance

    The thread of innovation continues throughout sustainable finance – from green cryptocurrency to ESG derivatives, and relinked sustainability instruments (sustainability-linked bonds tied to sustainability-linked loans). Ultimately, it’s good to see the market continue to develop, but caution and scrutiny are needed to ensure that labeling and the increasing complexity of financial instruments don’t lead to greenwashing.

    Greening of IPOs

    On the heels of Allbirds’ initial public offering (IPO), for which Sustainalytics provided a corporate ESG assessment of the company, there are continuing discussions about the greening of IPOs. As the number of companies going public continues to rise, they are each looking for ways to signal to investors that they are a safe bet when it comes to managing material ESG risk and overall company management. Having their ESG or sustainability performance assessed by a third-party prior to their IPO is one way to do that. Watch this space as we see how this trend develops for new IPOs in 2022.

    Recommended Reading

    Nick runs down a list of reports and research focused on reducing emissions and transition finance.

    • IEA – Tracking Report: Methane Emissions from Oil and Gas
  • McKinsey – Curbing Methane Emissions: How Five Industries Can Counter a Major Climate Threat
  • IEA – Global Hydrogen Review 2021
  • IEA – An Energy Sector Roadmap to Carbon Neutrality in China
  • Energy Transitions Commission – Keeping 1.5°C Alive: Actions for the 2020s
  • HSCB – A Practitioner’s Guide to Net Zero for Banks
  •  

    Key Moments

    01:28

    Market overview

    02:00

    Greening of IPOs

    02:40

    Google adds carbon data to flight info

    03:00

    Green cryptocurrency

    03:32

    EF conference - ESG Risk Ratings

    04:08

    ESG derivatives

    04:46

    Taxonomy report from Natixis

    05:11

    Nuclear power in sustainable finance

    05:46

    COP 26 highlights

    06:19

    New in sustainability-linked finance: relinked SLB

    07:04

    Biodiversity COP15 highlights

    07:31

    Green industry unicorns

    08:03

    Report recommendations: McKinsey & IEA methane reports

    08:40

    CBI interactive data tool

    09:36

    Green bonds overview

    15:10

    Social bonds and loans overview

    21:21

    Audience questions

    28:21

    SLL overview

    30:53

    Labeled products overview

    32:16

    Transition finance overview

    33:30

    Regulatory and country update

     

    Links to Select Resources
    • Natixis – The New Geography of Taxonomies
  • CBI Interactive Data Platform
  • CBI – China Green Securitization State of the Market 2020
  • Oilprice.com - EU’s Green Bond Debut Comes Out Swinging
  • Forbes - Africa’s Seychelles Blue Bond Economy Inspires Belize
  • Natural Gas World - Japan's Inpex Issues Its 1st Green Bonds
  • Reuters - APICORP sells $750 million in debut green bonds
  • Sustainalytics SPOs:
    • Kvika Bank Green Financing Framework Second-Party Opinion
  • The Famur Group Green Bond Framework Second-Party Opinion
  • Autodesk Sustainability Financing Framework Second-Party Opinion
  • OVS Group Sustainability-Linked Bond Framework Second-Party Opinion
  • Autonom Sustainability-Linked Bond Framework Second-Party Opinion
  • More Episodes

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