Weekly ESG News: Financial Services and Insurance Industry (24/2024)
BlackRock expands shelf of climate transition ETFs
BlackRock has launched a new range of five climate transition ETFs, listed on Euronext Amsterdam and classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).
Products & Services
WisdomTree collaborates with Irish Life Investment Managers for Global Sustainable Equity ETF launch
WisdomTree has launched the WisdomTree Global Sustainable Equity UCITS ETF (WSDG) in collaboration with Irish Life Investment Managers (ILIM). Listed on Börse Xetra and the London Stock Exchange, this SFDR article 9 fund aims to track the Solactive WisdomTree Global Sustainable Equity UCITS Index with a TER of 0.29%. The ETF invests in developed market companies contributing to social and environmental objectives, aligning with 11 of the 17 UN Sustainable Development Goals. This is WisdomTree’s third article 9 ETF, following launches in renewable energy and recycling decarbonisation.
Candriam launched new Sustainable Equity Water Fund
Candriam has launched a Sustainable Equity Water Fund under SFDR Article 9 to tackle global water challenges. The fund invests in companies that focus on water treatment, transportation, distribution, and efficiency. Managed by senior fund managers Bastien Dublanc and David Czupryna, it employs thematic and ESG screening, supported by a bespoke water taxonomy developed using multifaceted data sources and artificial intelligence. The fund responds to the increasing global demand for robust water infrastructure amid growing water scarcity. It is available in several European countries, including Luxembourg, Austria, Belgium, and France, with plans to expand to the UK soon.
BlackRock expands shelf of climate transition ETFs
BlackRock has launched a new range of five climate transition ETFs, listed on Euronext Amsterdam and classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR). These ETFs track the MSCI Transition Aware Select index suite and aim to include companies leading in the transition to a low carbon economy. The indices focus on companies with approved greenhouse gas emissions reduction targets or significant green revenues and exclude those with severe ESG controversies or involved in controversial industries. Manuela Sperandeo of BlackRock highlighted the importance of this transition in reallocating capital as energy systems evolve.
Regulations, Law and Frameworks
QCB launches ESG and sustainability strategy for financial sector
On June 12, 2024, Qatar Central Bank launched its ESG and Sustainability Strategy for the Financial Sector, in line with the Third Financial Sector Strategy and Qatar National Vision 2030. The strategy focuses on managing climate, environmental, and social risks, mobilizing capital towards sustainable finance, and integrating ESG principles within QCB’s operations. It aims to build capabilities in sustainable finance, enhance data infrastructure for risk assessment, and support national sustainability goals, strengthening the financial system’s resilience and inspiring sustainability efforts regionally and globally.
ESG Data & Analytics
MSCI launches AI Portfolio Insights
MSCI has launched MSCI Al Portfolio Insights, integrating generative artificial intelligence with advanced analytics to aid investors in identifying and managing emerging portfolio risks efficiently. This tool enables interactive risk analysis without coding, enhancing collaboration across investment teams. Additionally, MSCI introduced the Macro Finance Analyzer, leveraging financial modeling to assess macroeconomic impacts on portfolio risks and returns, supporting dynamic asset allocation decisions on their MSCI ONE platform.
BIS and MAS started a project for a climate risk platform for financial authorities
The BIS Innovation Hub and Monetary Authority of Singapore have developed Project Viridis, a blueprint for a climate risk platform that integrates regulatory and climate data. It assists financial authorities in identifying and managing climate-related risks, utilizing advanced technology from the BIS Innovation Hub Singapore Centre and MAS, alongside insights from global financial regulators. Key features include metrics on emissions, physical risk exposure, and climate scenarios, enhancing regulators’ ability to assess and address these risks effectively.
ISS ESG launches enhanced Modern Slavery Solution
ISS ESG has launched an enhanced Modern Slavery solution to assist investors in monitoring portfolio risks related to forced labor and human trafficking. The solution includes a scorecard and portfolio report utilizing data from ISS ESG’s assessments and external sources such as the US Department of Labor. It covers approximately 60,000 issuers globally for risk assessment and 8,000 for comprehensive reporting. This tool helps investors evaluate modern slavery risks, benchmark companies, and improve due diligence efforts.