Weekly ESG News: Financial Services and Insurance Industry
News in the spotlight: ICE expands UN SDG Offering for Corporate Bonds and Equities
Intercontinental Exchange (ICE) collaborates with Util to expand its UN SDG data offering for corporate bonds and equities, meeting the growing demand for impact investing. ICE’s data set now includes revenue-aligned impact metrics for 50,000 companies and 1.2 million securities, aiding clients in making informed sustainable investment decisions. Util’s granular data and ICE’s linkage capabilities help identify positive impact investment opportunities and measure the impact of companies’ products and services.
Weekly Sustainable Finance Newsletter 30/2023
ESG News of the last week in detail
Products and Service
LGIM partners with The National Trust to create fossil fuel divestment fund
LGIM has partnered with The National Trust to launch the Legal & General Future World ESG Developed Fossil Fuel Exclusions Index Fund. The fund aims to help investors and institutions fulfill their fossil fuel divestment commitments by providing a cost-effective way to minimize exposure to high carbon-emitting companies and those with significant carbon reserves. It incorporates ESG tilts to LGIM-designed indices, reducing exposure to companies with unfavorable ESG practices and supporting those with commendable ESG standings. The fund also includes LGIM’s Climate Impact Pledge.
Goldman Sachs launches corporate impact and green bond funds
Goldman Sachs Asset Management has launched two funds, the Goldman Sachs Global Impact Corporate Bond Fund and the Goldman Sachs USD Green Bond Fund, targeting fixed income investors interested in green, social, and sustainability bonds. The funds aim to enhance portfolio sustainability and address UN Sustainable Development Goals. Managed by the green, social, and impact bonds team within Goldman Sachs Asset Management’s global fixed income department, they have helped the firm surpass $9 billion in assets under management dedicated to green bonds. The funds comply with the EU’s Sustainable Finance Disclosure Regulation and are available for purchase in multiple European countries.
UBS AM launches global green bond ESG ETF
UBS Asset Management launched GREENE, a global green bond ESG ETF, excluding bonds over 10 years. It tracks the Bloomberg MSCI Global Green Bond 1-10 Year Sustainability Select index, filtering out controversial industries and low ESG-rated companies. The ETF supports eco-friendly projects and complies with Article 8 of SFDR, aligning with UBS AM’s broader ESG portfolio initiatives. This latest offering reflects UBS’s ongoing commitment to providing innovative solutions that address climate and sustainability needs for investors. The asset manager’s dedication to ESG is evident in recent moves, such as switching its USA quality and prime value factor ETFs to incorporate ESG characteristics and launching other sustainable-focused ETFs.
ICE Expands UN SDG Offering for Corporate Bonds and Equities
Intercontinental Exchange (ICE) collaborates with Util to expand its UN SDG data offering for corporate bonds and equities, meeting the growing demand for impact investing. ICE’s data set now includes revenue-aligned impact metrics for 50,000 companies and 1.2 million securities, aiding clients in making informed sustainable investment decisions. Util’s granular data and ICE’s linkage capabilities help identify positive impact investment opportunities and measure the impact of companies’ products and services.
ESG Data and Analytics
WTW launched “Climate Vista” to managed climate transition strategy efficiently
WTW has launched “Climate Vista,” an engagement tool designed to address the climate skills gap in corporate boardrooms. The tool aims to help boards and senior management understand their exposure to climate-related risks and opportunities. A recent survey by WTW and the Nasdaq Center for Board Excellence revealed that almost half of respondents reported their boards lacked the expertise to respond to climate risks effectively. Climate Vista can be tailored to specific companies, promoting alignment and understanding of climate risks and opportunities at all levels of the business. With increasing shareholder, investor, and regulatory pressure for climate risk disclosure, Climate Vista seeks to equip companies for the transition to a net-zero future.
Leadership Announcements
IPCC elects Jim Skea as the new Chair
Jim Skea from the UK is the newly elected Chair of the IPCC, bringing nearly forty years of climate science expertise. His priorities include improving inclusiveness and diversity, maintaining scientific integrity, and utilizing the best available climate science. The election took place in Nairobi during the IPCC’s 59th Session, with four candidates, including the first women running for the Chair position. Skea’s leadership will guide the IPCC through its Seventh Assessment Report over the next five to seven years.
Regulatory and Law
Australian regulator launches greenwashing case against Vanguard
ASIC has initiated legal proceedings against Vanguard Investments Australia over suspicions of greenwashing related to its environmental, social, and governance (ESG) statements. ASIC accuses Vanguard of making false claims about ESG screening in a bond index fund and insufficiently researching issuers tied to fossil fuels. The regulator is seeking monetary penalties and orders for public disclosure of the contraventions found. Vanguard self-reported the breach and apologized for causing concerns. Prior to this action, ASIC issued fines exceeding AUD 140,000 for greenwashing suspicions, including several against Vanguard.
IOSCO endorses the ISSB’s Sustainability-related Financial Disclosures Standards
IOSCO has endorsed the sustainability-related financial disclosures standards issued by the International Sustainability Standards Board (ISSB), including IFRS S1 and IFRS S2. This endorsement aims to promote consistent and comparable climate-related and sustainability-related disclosures for investors globally. The ISSB Standards will serve as a global framework for capital markets to use sustainability-related financial information in capital raising and trading. IOSCO calls on its 130 member jurisdictions, regulating over 95% of the world’s financial markets, to consider adopting or applying these standards. The endorsement comes after an extensive two-year engagement between IOSCO and ISSB.