Weekly ESG News: Financial Services and Insurance Industry (02/2024)
News in the spotlight: S&P Dow Jones Indices introduces two new benchmarks to measure SDG alignment
S&P Dow Jones Indices (DJI) has launched the S&P 500 SDG Index and the S&P Global LargeMidCap SDG Index to assess companies’ alignment with the United Nations’ 17 Sustainable Development Goals (SDGs). These indices provide an alternative approach to sustainability by focusing on the external impact of companies’ products and activities on society and the environment, rather than financial materiality. Utilizing data from Impact Cubed, a London-based ESG impact data provider, the indices offer unique perspectives on tracking and measuring sustainability performance based on the S&P 500 and S&P Global Large MidCap Index. More details on the methodology can be found on S&P DJI’s website.
Leadership Announcements
BN AMRO appoints Tanja Kramer as Head of the ABN AMRO Sustainable Impact Fund
Tanja Kramer has recently assumed the role of Head of the ABN AMRO Sustainable Impact Fund, bringing her valuable expertise to bolster the fund’s leadership. In her new capacity, Tanja will actively contribute to the origination and execution activities, propelling the fund’s growth and impact. With a background in the Venture Capital sector, Tanja has a track record of early-stage investments in the digital consumer life at Slingshot Ventures. Prior to this, she held key roles in corporate finance, serving as Head of M&A at KPN and as a member of the ABN AMRO Corporate Finance team.
Flexstone Partners appoints Samira Boussem as Head of Sustainability in France
Flexstone Partners has appointed Samira Boussem as Managing Director & Head of Sustainability to lead its ESG team and drive the firm’s sustainability strategy. Reporting to Eric Deram, Managing Partner, Boussem will focus on developing Flexstone’s in-house ESG investing framework, stewardship strategy, and product offering. With over $10 billion in assets, Flexstone aims to address environmental, social, and governance issues across private markets. Boussem, previously Head of ESG at Natixis Investment Managers Solutions, brings extensive sustainable investing knowledge and leadership experience to her new role.
Lazard expands Global Sustainable Equity team
On January 11, 2024, Lazard Asset Management (LAM) announced the expansion of its global sustainable equity investment team by appointing Evie Paterson as a Portfolio Manager/Analyst based in London. In her role, Ms. Paterson will contribute to managing the Lazard Global Sustainable Equity strategy, focusing on companies promoting sustainability and financial productivity. With expertise in global responsible investing and ESG integration, her appointment aligns with LAM’s commitment to stewarding clients’ capital. Formerly a Senior Research Analyst at Impax Asset Management, Ms. Paterson brings valuable experience in generating investment ideas for environmental and sustainable equity strategies, having been part of the portfolio construction teams for the $12 billion Global Opportunities strategy.
Products and Services
BNP Paribas Asset Management updates its global sustainability strategy
BNP Paribas Asset Management’s Global Sustainability Strategy centers on integrating sustainability into investments and operations. Guided by six strategic priorities, including science-led research and bold stewardship, the strategy aligns with the ‘3Es’ (Energy transition, Healthy Ecosystems, and Equality) for economic sustainability. Key elements encompass responsible business conduct, ESG integration, stewardship, sustainability in product offerings, and a CSR approach focusing on reducing environmental impact and promoting diversity. Transparent reporting underscores their commitment as a sustainable investor.
Apex Group backed Holtara combines advisory and platform services
Financial services giant Apex Group has unveiled Holtara, a new sustainability brand formed through the merger of Apex and MJ Hudson. Holtara offers global ESG solutions, leveraging a team of 150+ specialists and robust data tools. Backed by Apex Group’s $3 trillion assets serviced, Holtara aims to go beyond traditional ESG reporting, supporting 3,400+ investment managers and companies in 50+ countries. The ESG Advantage platform simplifies reporting and compliance, while advisory services assist clients in setting realistic commitments and prioritizing initiatives for continuous improvement.
Impax Asset Management acquires assets of Absalon Corporate Credit
London-based Impax Asset Management has announced its intention to acquire the assets of Absalon Corporate Credit, a Copenhagen-based fixed income manager overseeing approximately £351 million (€405 million) in assets. The acquisition, pending fulfillment of certain closing conditions, will bring the experienced Absalon team, led by Klaus Blaabjerg, into Impax’s fold, bolstering its fixed income capabilities. This strategic move aligns with Impax’s goal of providing a wider array of sustainable investment solutions. Following the completion of the acquisition, Impax plans to manage and distribute Absalon’s SICAV Funds, with the aim of incorporating them into its Ireland-based UCITS range, subject to approvals from relevant stakeholders and regulators.
S&P Dow Jones Indices introduces two new benchmarks to measure SDG alignment
S&P Dow Jones Indices (DJI) has launched the S&P 500 SDG Index and the S&P Global LargeMidCap SDG Index to assess companies’ alignment with the United Nations’ 17 Sustainable Development Goals (SDGs). These indices provide an alternative approach to sustainability by focusing on the external impact of companies’ products and activities on society and the environment, rather than financial materiality. Utilizing data from Impact Cubed, a London-based ESG impact data provider, the indices offer unique perspectives on tracking and measuring sustainability performance based on the S&P 500 and S&P Global Large MidCap Index. More details on the methodology can be found on S&P DJI’s website.
Green Bond & ESG Bond Issuances
International Finance Corporation (IFC) provides EUR 300mn ESG-linked bond to Iberdrola
Iberdrola and the World Bank’s IFC extended their partnership with a 300 million euro green loan for renewable projects in coal-dependent countries like Morocco, Poland, and Vietnam. The funding aligns with ESG criteria and supports Iberdrola’s goal to reduce emissions by over 60% and double its capacity by 2030. The loan, part of a collaboration initiated in May, has already allocated 170 million euros to onshore wind projects in Poland. This reinforces IFC as a crucial ally for Iberdrola’s renewable projects in developing nations. IFC, the World Bank’s private sector arm, continues its commitment to investing in emerging markets, having recorded a $43.7 billion investment in developing countries last year.
Regulations, Law & Frameworks
PRI publishes introductory guide to responsible investment
Corporate governance is vital for organizations, ensuring effective decision-making and accountability. The bankruptcy of FTX exemplifies how poor governance can lead to financial failure. Internationally recognized standards emphasize key areas like board roles, leadership, remuneration, and disclosure. Asset owners can enhance governance by integrating it into policies, engaging with issuers, and promoting transparent disclosure. The Greater Manchester Pension Fund sets an example by incorporating guidelines on governance in its responsible investment policy. Adopting such practices contributes to improved decision-making and long-term success. Access the guidance here.