Weekly ESG News: Financial Services and Insurance Industry
Weekly ESG News by Sustainable Finance Daily provide you with all relevant sustainable finance information of the last week. We cover the Insurance- and Financial Services Industry. No sign-up or mail address required.
Weekly Sustainable Finance Newsletter 22/2023
ESG News of the last week in detail
Products and Service
Lombard Odier IM launches Future Electrification Strategy
Lombard Odier Investment Managers (LOIM) has launched its Future Electrification Strategy, aiming to capitalize on the opportunities presented by the global shift to electrification and clean energy systems. The strategy focuses on high-quality companies that support demand, supply, and enablers of electrification. LOIM believes that electrification presents significant investment opportunities and aligns with its commitment to sustainability and the transition to a circular, lean, inclusive, and clean economy. Read more here.
ING launched a multi-asset Article 9 Fund
ING has launched its fifth impact fund, an Article 9 fund focused on the UN Sustainable Development Goals (SDGs). The fund invests in companies aiming to make a positive im-pact on people, the environment, and society while aligning to the SDGs. This launch is part of a larger trend in the asset management industry, with other firms like Azora, Allianz Global Investors, and Denmark’s Formuepleje also introducing ESG-focused funds and teams to meet the grow-ing investor demand for sustainable investment options.
Citi Group closes $130m off-grid solar deal in Kenya
Citi Group and Sun King have successfully secured $130 million in funding to support the expansion of solar energy in Kenya. In the securitization structure, investors finance the aggregated future payments from over a million Sun King customers. With this significant investment, Kenya is poised to experience a substantial boost in its solar power infrastructure.
HSBC explores opportunities around debt-for-nature swaps
HSBC is in close exchange with different partners to tap into the debt-for-nature swap market. This emerging market was dominated by Credit Suisse Group AG so far. The underlying principle is to swap debt aiming at reducing debt burdens of countries in exchange for environmental liabilities. HSBC’s managing director sees potential in exploring these alternative funding options alongside currently established green or sustainability bond structures.
Rize ETF has listed its circular economy ETF
Rize ETF has listed a sustainable thematic ETF, the Rize Circular Economy Enablers UCITS ETF. The product focuses on investing in companies that enable the transition to a circular economy. The ETF selects companies using a framework developed in partnership with Sustainable Market Strategies based on definitions from the European Commission and the EU Taxonomy. It aims to capture the diverse contributions different companies make towards enhancing circularity and is listed on multiple stock exchanges with an Article 9 SFDR classification.
Philips Pensioenfonds aligns EUR 370m EM equity portfolio with UN SDGs
The Dutch pension fund Philips Pensioenfonds has partnered with BlackRock and Qontigo to align its €370m emerging markets equity portfolio with four UN Sustainable Development Goals (SDGs). The segregated mandate managed by BlackRock will track the iSTOXX PPF Responsible SDG Emerging Markets index, overweighting companies aligned with SDGs 3, 11, 12, and 13. This follows a similar segregated mandate for Philips Pensioenfonds’ developed markets equity portfolio.
ESG Data and Analytics
Arabesque AI partners with HSBC and develops the HSBC ESG Risk Improvers Index
HSBC has launched the HSBC ESG Risk Improvers Index, using artificial intelligence to measure companies’ ESG improvements. The index tracks the performance of over 1,000 global stocks expected to benefit from better ESG credentials. Investors can access these stocks with positive ESG momentum through products linked to the index. The methodology was developed together with Arabesque AI using their ESG Book data platform.
Sustainable Finance Leadership Announcements
Richard Mattison and Chris Heusler promoted to vice-chair and president of Sustainable1
S&P Global has promoted Dr. Richard Mattison to Vice-Chair and Chris Heusler to President of Sustainable1. Dr. Mattison will focus on market innovation and thought leadership, while Heusler will drive growth. Heusler and Mattison will report directly to Martina Cheung, president of S&P Global Ratings and executive sponsor at Sustainable1.
Pemberton appoints Niamh Whooley as Head of Sustainable Investing
Pemberton has hired Niamh Whooley as new Head of Sustainable Investing. In her new role, she will develop sustainable investments opportunities and collaborate with clients and stakeholders. With 15 years of experience in sustainable investing, she has contributed to various industry initiatives, including the UN PRI’s and the Sustainable Development Goal’s advisory committee. Whooley plans to lead the firm’s growth and innovation in sustainability within the private credit space.
Net Zero
Lloyd's, QBE to exit NZIA
Lloyd’s and QBE have withdrawn from the Net Zero Insurance Alliance (NZIA), joining a list of insurers and reinsurers leaving the voluntary alliance. Some cited antitrust concerns, but UNEP emphasizes the need for collaboration to tackle the climate emergency.