Weekly ESG News: Financial Services and Insurance Industry (18/2024)
News in the spotlight: HSBC faces shareholder calls for more transparency
HSBC shareholders, representing assets worth USD 892 billion, are pressing for transparency on the bank’s green finance initiatives, particularly requesting details on fund allocation and a renewable energy funding target.
Regulations, Law and Frameworks
ISSB publishes its digital sustainability taxonomy
The International Sustainability Standards Board (ISSB) has released the IFRS Sustainability Disclosure Taxonomy, facilitating efficient analysis of sustainability disclosures for investors. It aligns with ISSB Standards, aiding dialogue without imposing new compliance burdens. Designed to complement existing accounting taxonomies, it promotes transparency and market efficiency. ISSB Chair Emmanuel Faber highlights its importance for global adoption and interoperability with other taxonomies, facilitating effective disclosure identification. Educational resources and a forthcoming webcast further support its utilization.
IFRS Foundation and EFRAG publish interoperability guidance
The IFRS Foundation and EFRAG have collaborated to publish guidance showcasing the substantial alignment between the ISSB Sustainability Disclosure Standards and the ESRS. This guidance aids companies worldwide in efficiently complying with both sets of standards, reducing complexity and duplication in reporting processes. By providing practical support and detailed analysis, the document facilitates transparency, comparability, and accountability in sustainability reporting. Stakeholders emphasize the importance of such interoperability in advancing international standards and supporting companies in meeting their sustainability reporting obligations effectively (source: ISSB website).
Products & Services
Goldman Sachs Alternatives invests in Adler & Allan
Goldman Sachs Alternatives’ Private Equity business is set to acquire a majority stake in environmental risk reduction specialist Adler & Allan from Sun European Partners. This acquisition aims to propel Adler & Allan’s growth trajectory, enhancing its service offerings and geographic reach. The company’s management team, led by CEO Henrik Pedersen, will continue to guide its strategic direction. Both parties express excitement about the collaboration and anticipate completing the deal in the latter half of 2024, pending regulatory approvals.
Leadership Announcements
Schneider Electric Names Farrukh Shad Head of Sustainability for APMEA Region
Schneider Electric has named Farrukh Shad as the Head of Sustainability for the APMEA region, where he will lead the company’s sustainability efforts. With over 25 years of experience and a background in various sectors, Shad will focus on advancing Schneider Electric’s climate mitigation initiatives and aiding large enterprises in reducing carbon emissions. Shad’s appointment underscores Schneider Electric’s dedication to sustainability and purpose-driven business, aligning with its integrated efficiency solutions for energy management.
Nicola Schroder Appointed Group Head of Sustainability at QBE Insurance Group Limited
QBE Insurance Group Limited has appointed Nicola Schroder as Group Head of Sustainability, where she will lead the company’s sustainability strategy across key areas. With 20 years of experience in various sectors, including insurance, Nicola brings extensive expertise to her new role. Previously serving as Head of Environment and Transition at QBE, she played a vital role in advancing sustainability goals, including the development of a net-zero operations roadmap. Nicola holds degrees from the University of Melbourne and chairs the Insurance Council of Australia’s Net Zero Working Group. She will assume her new position immediately, while QBE begins recruitment to fill her former role.
Net Zero Commitments
HSBC faces shareholder calls for more transparency
HSBC shareholders, representing assets worth USD 892 billion, are pressing for transparency on the bank’s green finance initiatives, particularly requesting details on fund allocation and a renewable energy funding target. Led by ShareAction, investors like Ethos Foundation and Royal London Asset Management are urging HSBC to clarify how its $1 trillion sustainable finance target by 2030 will be distributed across environmental and social themes, emphasizing renewable energy. This demand for clarity follows concerns about greenwashing accusations due to a lack of transparent reporting, as highlighted in ShareAction’s previous analysis of major banks’ sustainable finance efforts.