Weekly Snippet November (21.11. – 27.11.)

Products and Service

Banque de France joins the UN PRI initiative

tThe Banque de France’s responsible investment strategy has been built and developed around fighting climate change and taking into account sustainability criteria. Through its adherence to the UN-supported Principles for Responsible Investment (PRI), the Banque de France wants to strengthen its commitment to continue its contribution.
Read more here.

Morgan Stanley Investment Management (MSIM) launched new Private Equity platform

MSIM announced the launch of the 1GT growth-oriented private equity platform focusing on investments in companies that seek to mitigate climate change. 1GT is seeking to invest in companies that will collectively avoid or remove one gigaton of CO2-equivalent emissions from the Earth’s atmosphere from the date of the Platform’s investment through 2050, the date by which the United Nations has mandated “Net Zero” must be achieved.
Read more here.

EURAZEO announced first close of Transition Infrastructure Fund

Eurazeo announced that the Eurazeo Transition Infrastructure Fund (ETIF or the Fund) has reached first close with €210million commitments from EIF and a range of institutional investors. The European Investment Fund has made a cornerstone investment of €75 million. The agreement is supported by the InvestEU program. As of today, the fund has a portfolio of 3 investments in 3 sectors across 3 European countries.
Read more here.

Amundi downgrades 100 funds

Amundi has downgraded 100 funds with $46.28 billion in assets to a lower level of sustainability under the Sustainable Finance Disclosure Regulation (SFDR) rules ahead of new reporting requirements going live in January 2023.
Read more here.

Schroders Capital launches real estate impact fund

Schroders Capital has launched its UK real estate impact fund which seeks to address both social inequality and climate change by seeking to repurpose retail town centers into mixed-used projects. Schroders committed GBP 10m in seed funding and targets the closing of the fund with approx. GBP 150m by year-end.
Read more here.

Regulations and Law

Climate disclosures become mandatory for large banks in Switzerland

During its meeting on 23 November 2022, the Federal Council adopted the implementing ordinance on climate disclosures for large Swiss companies, and brought it into force as of 1 January 2024. Public companies, banks and insurance companies with 500 or more employees and at least CHF 20 million in total assets or more than CHF 40 million in turnover are obliged to report publicly on climate issues.
Read more here.

Law change allows US pension plans to consider material ESG factors

ERISA pensions are now permitted to incorporate material ESG factors into their investment and voting decisions. It clarifies that a fiduciary of pension plans can consider ESG as a material factor that can inform their investment and proxy voting decisions. It follows an executive order signed by President Biden in May 2021 and serves as a direct reversal of two rules issued in 2020 by the Trump’s administration
Read more here.

Goldman Sachs Asset Management to pay $4 million penalty

Goldman Sachs Asset Management agreed to pay $4 million to settle the Securities and Exchange Commission’s claims that Goldman Sachs Asset Management, L.P. failed to follow policies and procedures for certain environmental, social and governance investment products. The SEC uncovered procedural failures involving the ESG research used to select and monitor securities.
Read more here.

ESMA launches consultation on guidelines for the use of ESG-related terms

The European Securities and Markets Authority (ESMA), is seeking input on draft guidelines on the use in funds’ names of ESG or sustainability-related terms. In order not to mislead investors, ESMA believes that ESG- and sustainability-related terms in funds’ names should be supported in a material way by evidence of sustainability characteristics or objectives that are reflected fairly and consistently in the fund’s investment objectives and policy.
Read more here.

UK´s Financial Conduct Authority (FCA) plans to develop a code of conduct for ESG data and rating providers

As financial services firms integrate ESG into their activities and expand their ESG-focused products, they are increasingly reliant on third party ESG data and ratings services. The Secretariat will convene an independent group to develop the Code. Consistent with their respective objectives, the FCA, the Bank of England and other relevant financial regulators and government departments will sit as active observers to this group.
Read more here.

European Supervisory Authorities (ESAs) launch Call for Evidence on greenwashing

The three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) this week published a Call for Evidence on greenwashing to gather input from stakeholders on how to understand the key features, drivers and risks associated with greenwashing and to collect examples of potential greenwashing practices.
Read more here.

ESG Data and Analytics

MSCI launches new solutions for banks to align with EBA ESG Pillar 3 disclosures

MSCI, a leading provider of critical decision support tools and services for the global investment community, today launches a new solution to support banks that seek to align
with the European Banking Authority’s (EBA) Environmental, Social and Governance (ESG) Pillar 3 prudential framework in measuring and reporting on ESG and climate-related risks.
Read more here.

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