Weekly ESG News: Financial Services and Insurance Industry (26/2024)
News in the spotlight: KKR and IGNIS Partner to develop green hydrogen projects
KKR and IGNIS have announced a joint venture, IGNIS P2X, to develop green hydrogen, ammonia, and other green technologies, with KKR committing up to €400 million.
Products & Services
KKR and IGNIS Partner to develop green hydrogen projects
KKR and IGNIS have announced a joint venture, IGNIS P2X, to develop green hydrogen, ammonia, and other green technologies, with KKR committing up to €400 million. IGNIS P2X will focus on decarbonizing hard-to-abate industrial sectors, starting with a pipeline of around 20 GW of projects in Spain and other countries. The partnership leverages IGNIS’ extensive renewable portfolio and KKR’s expertise in climate investments to support the global transition to a low-carbon economy (source: KKR).
ECB published report on climate-related financial disclosure
As climate-related disasters grow in frequency and severity, the ECB recognizes the urgent need to address climate change. The ECB is committed to increasing transparency about climate-related risks and the carbon footprint of its financial portfolios. Their latest report shows significant emission reductions in corporate sector assets and includes new disclosures for public sector and covered bond portfolios, covering over 99% of Eurosystem assets held for monetary policy purposes. This progress supports the EU’s climate goals and highlights the importance of issuer-level actions to achieve net zero carbon emissions.
Regulations, Law and Frameworks
IFC and IFRS Foundation partner to boost sustainability reporting in emerging markets
The International Finance Corporation (IFC) and the IFRS Foundation have formed a strategic partnership to enhance sustainability and climate reporting in emerging markets and developing economies (EMDEs). Announced during London’s Climate Action Week, the collaboration aims to promote the IFRS Sustainability Disclosure Standards through training, toolkits, and technical assistance. This initiative builds on IFC’s previous successes and seeks to ensure EMDEs are included in the global move towards sustainable finance.
ISSB announced new two-year work plan to harmonize sustainability disclosures
ISSB has unveiled a new two-year work plan aimed at further harmonizing sustainability disclosure standards. Key initiatives include consolidating frameworks for transition plans, enhancing GHG emissions measurement with the GHG Protocol, partnering with CDP for aligned climate disclosures, and collaborating with GRI to streamline reporting. This effort responds to market demand for high-quality, comparable sustainability information for investors.
ISO to develop first International Net Zero Standard
ISO has begun developing its first international standard on net zero, set to launch at COP30 in November 2025. This standard aims to provide clear, robust requirements for the net zero transition and enable independently verified climate action, enhancing credibility and combating greenwashing. Thousands of experts from over 170 countries will collaborate, with a public consultation planned for 2025. The initiative was announced during London Climate Action Week by Noelia Garcia Nebra, ISO’s Head of Sustainability (source: IFRS).
IIGCC unveiled enhanced Net Zero Investment Framework 2.0
The IIGCC has released the NZIF 2.0, a comprehensive guide for investors to develop net zero strategies, incorporating three years of implementation experience. Key updates include new guidance for sovereign bonds, real estate, private debt, and a focus on financing reduced emissions over merely reducing financed emissions. The NZIF 2.0 serves as a crucial resource for investors globally, offering over 40 actionable steps to support their net zero goals (source: IIGCC).