Weekly ESG News: Financial Services and Insurance Industry (08/2024)
News in the spotlight: SIX launches new SME Sustainability Assessment Solution
SIX has launched a SME Sustainability Assessment Solution in partnership with Greenomy, allowing global banking clients to measure sustainability performance and assess climate risks for their SME clients.
Products and Services
Schroders launches new global equity impact fund
Schroders has launched Schroder ISF Global Equity Impact, a new global equity impact fund in response to increasing client demand. Aligned with the UN SDGs, the fund targets companies addressing societal and environmental challenges, aiming for positive impact and long-term returns. Managed by Joanna Wald and Paul Griffin, it joins Schroders’ impact-driven public equity range covering emerging markets, US smaller companies, Asian equity, and European innovators.
BNP Paribas Asset Management launches two new fixed income ETFs
BNP Paribas Asset Management launched two ESG-focused fixed income ETFs, trading on Borsa Italiana and Deutsche Börse Xetra. The funds, Corporate Bond and Government Bond, integrate BNPP AM’s ESG methodology, exclusion policies, and active engagement. The Corporate Bond fund follows Article 9 of SFDR regulation, while the Government Bond fund adheres to Article 8, offering clients diverse, sustainable fixed income options.
Redwheel partners with Turquoise to launch ClimateTech Growth Capital fund
Redwheel and Turquoise partner for a UK ClimateTech Growth Capital fund, pending regulatory approval. The fund targets growth capital for disruptive companies in energy, transport, and resource efficiency. Combining Redwheel’s institutional access and Turquoise’s corporate network, the goal is to advance clean and sustainable technologies in the promising ClimateTech sector, with an estimated £1.4 trillion investment opportunity over the next 30 years.
SIX launches new SME Sustainability Assessment Solution
SIX has launched a SME Sustainability Assessment Solution in partnership with Greenomy, allowing global banking clients to measure sustainability performance and assess climate risks for their SME clients. The solution utilizes Greenomy’s software platform and facilitates the calculation of the EU Banking Book Taxonomy Alignment Ratio (EU BTAR). It supports banks in meeting reporting requirements, fosters sustainability improvements, and enables a dialogue with SME clients to meet emerging standards. Marion Leslie, Head Financial Information at SIX, emphasizes the importance of understanding the climate credentials of SMEs, which represent a significant portion of businesses worldwide.
Regulations, Law & Frameworks
EU Council and Parliament agree to establish an EU carbon removals certification framework
EU Council and Parliament agree on the first certification framework for carbon removal, farming, and storage, supporting climate neutrality by 2050. Criteria emphasize quantification, additionality, long-term storage, and sustainability. The agreement includes monitoring rules, liability, and a transparent EU-wide registry. Next steps involve endorsement and formal adoption, aiming to boost carbon removal technologies and sustainable farming in line with EU climate policy.
AMF publishes position paper which should guide the SFDR review
The AMF proposes a review of SFDR, urging for a clear EU product categorization system with objective criteria. They suggest four categories, emphasizing flexibility and compatibility with existing national schemes. Manufacturers should disclose sustainability risks and impact assessments for all products, focusing on comparability and clarity for investors. The AMF recommends shifting SFDR’s focus solely to product-level disclosures, removing entity-level disclosures to align with the Corporate Sustainability Reporting Directive framework. This approach aims to streamline information for investors with sustainability preferences.