Weekly ESG News: Financial Services and Insurance Industry (22/2024)
News in the spotlight: US Government announces new principles for voluntary carbon markets
The Biden-Harris Administration announced new principles for voluntary carbon markets to ensure their integrity and effectiveness. These principles aim to establish robust standards for carbon credits, improve market functionality, ensure fair treatment, and advance environmental justice.
Products & Services
Candriam launches sustainable equity emerging markets ex-China fund
Candriam has launched the Candriam Sustainable Equity Emerging Markets ex-China Fund, targeting growth through sustainability trends in emerging markets excluding China. The fund focuses on themes like technology, innovation, healthy living, climate change, resource efficiency, waste management, and demographic shifts. Managed by Vivek Dhawan, with support from Paulo Salazar and Galina Besedina, the fund aims to capitalize on the rising demand and potential in these regions. Salazar notes that the fund offers investors a unique opportunity to achieve compelling returns while aligning with sustainable investment principles (source: funds-europe.com).
Lightrock launches Global Small-Cap ESG strategy
Lightrock has launched its Global Small-Cap Strategy, marking its first move into public equity investing. Seeded with over €400 million, it aims to outperform the MSCI World Small Cap Index through active management and fundamental research. The strategy, comprising 50-75 stocks, focuses on companies with strong fundamentals and aligns with Lightrock’s ESG and Impact frameworks. CEO Pal Erik Sjatil highlighted the firm’s commitment to fostering positive change in this new asset class (source: Lightrock).
HSBC UK launches carbon calculator for corporate clients (SMEs)
HSBC UK has launched a carbon calculator for SMEs in partnership with Greenly, accessible via HSBC’s Sustainability Tracker. It offers basic and premium packages for carbon footprint assessment, addressing the lack of support for sustainability measurement found in an HSBC survey. Rob King of HSBC UK highlighted its importance for SMEs’ transition plans. This follows the introduction of HSBC UK’s Buildings Sustainability Assessment Tool (source: HSBC).
Inauguration of Amundi Energy Transition´s wind farm
On May 16, Amundi Energy Transition and Opale Énergies Engagées inaugurated the Bois des Saulx wind farm near Dijon. The wind farm, comprising six turbines with a total capacity of 18 MW, can produce low-carbon electricity for around 18,000 people, reducing CO2 emissions by 22,000 tonnes annually. Amundi Energy Transition, holding an 80% stake, partnered with Opale in 2020, who managed construction and now oversees operations. This project aligns with Amundi’s strategy of investing in the energy transition and decarbonization sectors. Arnaud Grand of Opale emphasizes the role of renewable energies like wind power in achieving France’s carbon neutrality goals by 2050 (source: Amundi).
Regulations, Law and Frameworks
The SBTi releases criteria updates to improve usability for financial institutions
The Science Based Targets Initiative (SBTi) has released revisions and new resources, including the Financial Institutions’ Near-Term Criteria Version 2.0 (FINT Criteria V2), to assist financial institutions in setting ambitious near-term emission reduction targets aligned with a 1.5°C goal. These updates aim to enhance clarity, actionability, and usability, introducing criteria for fossil fuel finance targets. The changes will take effect from November 30, 2024, with a transition period for existing targets. Additionally, the SBTi is developing a Financial Institutions Net-Zero Standard (source: SBTi).
US Government announces new principles for voluntary carbon markets
The Biden-Harris Administration announced new principles for voluntary carbon markets to ensure their integrity and effectiveness. These principles aim to establish robust standards for carbon credits, improve market functionality, ensure fair treatment, and advance environmental justice. Key principles include meeting credible decarbonization standards, avoiding environmental harm, prioritizing measurable emissions reductions, and ensuring transparency in credit use. These measures are part of a broader effort to drive significant climate action and economic opportunity through responsible and high-integrity carbon markets (source: The White House).
IIGCC published new net zero guidance for private credit
IIGCC published new net zero guidance for private credit, tailored for the private debt industry. It recommends differentiated targets for general and limited partners, promotes clarity in assessing climate risks, and introduces innovative approaches like a 12-month grace period post-deal close. The guidance is part of the Net Zero Investment Framework, aiming to accelerate portfolio alignment with the Paris Agreement (source: IIGCC).
Leadership Announcements
Abrdn appoints Dan Grandage as Chief Sustainability Officer
Abrdn has recently named Dan Grandage as its latest chief sustainability officer, now reporting to Peter Branner, the chief investment officer. With an extensive track record spanning over 25 years in sustainable investing, Grandage brings a wealth of experience to the role, having previously worked on integrating sustainability into both public and private assets. His appointment follows the departure of Amanda Young in April 2024. Grandage has stressed the crucial role of clarity and insightful decision-making in sustainable investing, particularly in addressing pressing global issues such as climate change.
Dame Inga Beale appointed as Chair of South Pole’s Board of Directors
Dame Inga Beale has been appointed as the new Chair of South Pole’s Board of Directors, bringing decades of leadership experience from companies like Lloyd’s of London and Zurich Insurance. With her expertise, South Pole aims to continue delivering positive climate impact and leading in sustainability initiatives. Her appointment aims to strengthen South Pole’s strategic governance and position the company for growth in the evolving sustainability industry (source: South Pole).
Net Zero Commitments
Edmond de Rothschild Asset Management commits to align EUR 26bn to 2050 net zero targets
Edmond de Rothschild Asset Management has allocated 26 billion euros, representing 47.5% of its assessed assets, towards achieving the goal of net zero emissions by 2050. This commitment is part of the company’s sustainable development strategy, highlighting the integration of ESG criteria in investment processes and active engagement with invested companies. Additionally, the firm has set interim net zero targets for 2030 across its main asset classes, demonstrating its dedication to combating climate change and supporting the transition to a more sustainable economy (source: Edmond de Rothschild).