ESG in Conversation

What’s Happening in Sustainable Finance: Reflecting on COP26 Pledges, Sustainable Finance for Gender Equality, and More


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Episode Summary 
Hosts 
  • Nicholas Gandolfo, Director, Corporate Solutions 
  • Aditi Bhatia, Regional Sales Manager, Corporate Solutions 
  •  

    Your hosts Nick and Aditi showcase recent deals and transactions in the global sustainable debt and loan markets, share interesting reports, and highlight new labeled products and regulatory developments in this space.     

    Climate Promises Made, but What Do They Mean in Practice? 

    Reflecting on the outcomes from COP26, Nick and Aditi highlight some of the commitments made during the conference and what they could mean going forward. Many of the delegates, including some of the world’s largest polluters, made pledges to target net-zero emissions, curb deforestation, reduce methane emissions, and ‘phase down’ coal and fossil fuels.

    The issue of what developed nations could and should do to support developing nations in building resilience against the impacts of climate change was also a hot topic. Some participants and observers were dissatisfied with the outcomes from COP26, and their disappointment was understandable. Though things may not be progressing as far or as quickly as needed, it is promising to see that these pressing climate issues continue to take center stage.     

    Bridging the Gender Gap Through Sustainable Finance 

    Among the recommended reading for this episode, a recent report from the International Capital Markets Association (ICMA), UN Women, and the International Finance Corporation (IFC) stands out. Bonds to Bridge the Gap: A Practitioner’s Guide to Using Sustainable Debt for Gender Equality, outlines how sustainable finance can help direct capital to reduce the financial and economic inequalities between women and men. The report offers case studies and examples of gender-related activities, targets, and key performance indicators for issuers to consider.

    In a blog post from last year, Sustainalytics’ Ijeoma Madueke also discussed the idea of using gender lens investing and gender bonds to finance the empowerment and socio-economic advancement of women and girls globally. It’s clear that gender is a key issue that could, and should, be included in more sustainable finance transactions.

    Key Moments 

    00:08

    Introduction

    00:49

    Market news

    01:10

    Forecast for 2022

    01:32

    CBI Q3 report

    02:55

    Post-COP 26 insights

    04:30

    STBi - Net Zero Target Setting Mechanism

    05:04

    World Bank report on ways to measure GDP

    05:33

    ICMA, IFC, UN Women Report - Bonds to Bridge the Gender Gap

    06:04

    Partnership for Carbon Accounting Financials (PCAF) report

    07:35

    EU/China Common Ground Taxonomy

    07:52

    IOSCO calling for ESG ratings regulation

    08:51

    Green bonds overview

    14:22

    Social bonds and loans overview

    15:05

    Green loans overview

    16:11

    SLB overview

    20:45

    Audience questions

    24:25

    SLL overview

    26:12

    Labeled products overview

    27:35

    Transition bonds overview

    29:06

    Regulatory update

     

    Links to Select Resources
    • Bloomberg – Modi Urges $1 Trillion to Help India’s Transition: COP26 Update
  • Market Screener – SEB's The Green Bond Report: COP26 - a Qualified Success
  • SBTi – The Net-Zero Standard
  • The Age – Hitting Net-Zero Requires a Major Banking Shake-up
  • Bloomberg – Nuclear Energy Generator Splits ESG Buyers With Green Bond
  • Global Capital – EU, China Produce First Common Ground Taxonomy
  • Responsible Investor – IOSCO: ESG Ratings and Data Need Regulatory Oversight to “Increase Trust”
  • Sustainalytics SPOs:
    • Frost CMBS 2021-1 Green Securitized Bond Framework Second-Party Opinion
  • Barclays Capital Real Estate Inc. Social Bond Framework Second Party Opinion
  • KPN Sustainability-Linked Finance Framework Second-Party Opinion
  • Encevo S.A Green Schuldschein Framework Second Party Opinion
  • Empresa Generadora de Electricidad Haina, S.A. Sustainability-Linked Financing Framework Second Party Opinion
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