Weekly ESG News: Financial Services and Insurance Industry (23/2024)
News in the spotlight: Phoenix Group launches new climate aware equity benchmarks
Phoenix Group has launched a “Climate Aware” index series with FTSE Russell. The FTSE Russell-developed indices and benchmarks are designed to measure the mitigatation risk level of climate change.
Products & Services
Phoenix Group launches new climate aware equity benchmarks
Phoenix Group has launched a “Climate Aware” index series with FTSE Russell. The FTSE Russell-developed indices and benchmarks are designed to mitigate the risk of climate change on policyholder portfolios by limiting exposure to companies that may suffer from a lack of well-thought-out plans for effectively navigating the transition. The building adheres to the fundamental values established by Phoenix, which include the acceleration of the decarbonization trajectory and the incorporation of data that looks forward, guaranteeing that managing climate risk and advocating for change are at the center of the project.. The launch aligns with Phoenix’ strategy in terms of ESG. Sindhu Krishna of Phoenix Group highlighted the need to manage transition risks for optimal investment performance. Solange Le Jeune of FTSE Russell noted the collaboration’s role in mainstreaming decarbonisation strategies with minimal deviation from parent benchmarks.
Pollination launches landmark Climate and Nature Fund
Pollination has launched the Climate and Nature Impact Venture Fund, aiming to drive new investment into Australian climate and nature technologies. The fund targets early-stage and early expansion solutions, with initial support from Queensland Investment Corporation. CEO Martijn Wilder highlighted the fund’s role in addressing the climate and nature crises, combining climate and nature solutions to meet market demand. Chief Investment Officer Diana Callebaut emphasized the fund’s alignment with the transition to net zero and nature-positive initiatives across various industries.
Regulations, Law and Frameworks
Public consultation on conduct code for directors launched in the UK
The Institute of Directors (IoD) has introduced a voluntary code of conduct for directors to improve decision-making and public trust. Developed by a commission led by Lord McNicol and supported by BDO, the code includes six principles: Leading by Example, Integrity, Transparency, Accountability, Fairness, and Responsible Business. Jonathan Geldart of IoD emphasized its role in fostering exemplary values and integrity, while Lord McNicol stressed the importance of trust in directors’ decisions.
Australia proposes fund-labeling regime in sustainable finance strategy
Australia has announced a sustainable finance strategy, including a fund-labeling regime to standardize sustainability labels for investment products. The strategy, open for stakeholder feedback until December 1, aims to enhance information quality, support financial regulators, and promote international alignment. It also addresses greenwashing and plans for nature-related financial disclosures.
Leadership Announcements
Savills IM appoints head of natural capital
Savills Investment Management (Savills IM) has appointed Andrew Dreaneen as Global Head of Natural Capital. Dreaneen, formerly Head of Alternatives at Schroders, brings extensive experience in natural capital investments, including forestry and farmland. He will lead Savills IM’s natural capital division, focusing on investment strategy, product design, and capital raising. Savills IM aims to leverage its rural expertise to offer innovative natural capital strategies to institutional investors. Chief Executive Alex Jeffrey highlighted the firm’s unique position to integrate rural investment and management capabilities.
ESG Data & Analytics
Large institutional investors push for improved ocean-related ESG data
BNP Paribas Asset Management, Federated Hermes, Mirova, Robeco and Storebrand Asset Management urge ESG data providers to enhance ocean-related data on risks and opportunities. The push follows the 2022 Kunming-Montreal Agreement to protect 30% of maritime ecosystems by 2030. The asset managers call for credible data to assess companies’ impacts on nature to support informed investment decision-making. Major sectors with data gaps include aquaculture, marine tourism, offshore energy, and wild capture fishing.
Wolters Kluwer expands CCH Tagetik ESG & Sustainability solution
Wolters Kluwer has launched CCH Tagetik ESG & Sustainability for Carbon Emissions, enhancing its ESG offerings with advanced data management for Scope 1, 2, and 3 emissions. This solution aligns with the Corporate Sustainability Reporting Directive (CSRD) and uses the GHG protocol for accurate emissions tracking. Key features include pre-configured data models, emission factor libraries, GHG calculation logic, and comprehensive dashboard visualization. The product aims to help finance leaders manage non-financial data rigorously and streamline regulatory reporting. This launch underscores Wolters Kluwer’s commitment to supporting companies in meeting growing ESG reporting requirements.
ESG & Green Bonds
Australia issues inaugural $7 billion green bond
Australia has issued its inaugural $7 billion green bond, marking a significant milestone in the country’s sustainable finance market. The bond was oversubscribed, attracting over $22 billion in bids from 105 investor institutions globally. Funds raised will support projects such as green hydrogen hubs, community batteries, clean transport, and biodiversity conservation. This initiative aims to reduce greenhouse gas emissions, boost renewable energy production, and enhance biodiversity. The bond aligns with the Albanese Government’s commitment to net zero emissions by 2050 and the UN Sustainable Development Goals (source: treasure.gov.au).