Weekly ESG News: Financial Services and Insurance Industry (47/2024)
News in the spotlight: Iceberg Data Lab Launches Tool to Assess Portfolio Deforestation Impact
Iceberg Data Lab (IDL) has introduced a new tool enabling investors to measure the deforestation impact of 3,500 global companies producing raw materials like beef, soy, and palm oil in 22 deforestation-prone countries, with plans to expand coverage to 8,000 companies by January.
Upcoming events
Sustainability Forum Middle East (SFME)
We are delighted to invite you and your team members to register for the third edition of Sustainability Forum Middle East (SFME), set to take place on January 28-29, 2025, at the Crowne Plaza, Manama, Kingdom of Bahrain, in the presence of H.E. Dr. Mohamed bin Mubarak Bin Daina, Minister of Oil and Environment and Special Envoy for Climate Affairs, with the support of Supreme Council for Environment of Bahrain.
Focused on “Mobilizing Action and Investment for Climate and Energy Resilience,” the Forum will gather more than 400 business leaders, sustainability experts, and changemakers from the region and beyond to address topics critical to MENA’s transition to a low-carbon future.
The two-day event will feature high-level panels and keynote addresses from cross-sector executives across both public and private sectors, along with networking opportunities and a full day of Expert-Led Workshops dedicated to skills development and hands-on learning. In collaboration with global management consultancies and leading sustainability specialists, SFME will offer several interactive workshops designed to help attendees develop and refine strategies to launch, accelerate, and report on their organization’s net-zero journey – this includes workshops from KPMG, Anthesis Group and Environment Arabia, among others. Once registered, participants will have access to all workshops on January 28 and the full Forum programme on January 29, 2025.
Don’t miss this opportunity to join a premier gathering of business leaders and sustainability advocates and experts. Please use this coupon to get 20% discount “Media”.
Register now: https://sustainmideast.com/registration/
Products and Services
Amundi launches Global ESG Factor ETF range
Amundi, Europe’s leading asset manager, has expanded its suite of sustainable investment solutions by introducing a new range of Global ESG Factor Exchange-Traded Funds (ETFs). This initiative aligns with the growing investor demand for products that integrate environmental, social, and governance (ESG) considerations with factor-based investment strategies.
The newly launched ETFs are designed to provide investors with exposure to global equity markets while emphasizing ESG criteria. They incorporate factor-based approaches, such as value, momentum, and low volatility, to enhance portfolio diversification and potential returns. By integrating ESG factors, these ETFs aim to promote responsible investing practices without compromising on performance (source: amundietf.ch).
IBM Unveils Maximo Renewables to Optimize Renewable Energy Assets
IBM has launched Maximo Renewables, a solution designed to help companies manage and optimize renewable energy assets. The platform offers predictive maintenance, performance monitoring, and actionable insights to address challenges like asset complexity, high operating costs, and efficiency losses. Key features include a Map View for real-time portfolio performance, custom dashboards, and automated workflows for identifying and addressing underperformance. The solution builds on IBM’s acquisition of Prescinto and integrates AI and analytics to enhance asset lifecycle management. IBM aims to support companies in improving asset efficiency, extending lifespan, and maximizing energy output amid the growing adoption of renewables.
Net Zero Commitments
Alfa Laval Accelerates Net Zero Target to 2027
Alfa Laval has advanced its net zero goal for scope 1 and 2 emissions to 2027, three years earlier than planned, with a 50% reduction in scope 3 emissions also targeted by then. Announced at its Capital Markets Day in Italy, this update builds on its 2019 commitment to carbon neutrality by 2030 and net zero by 2050. Backed by investments in energy efficiency and renewable energy, the company is exceeding its targets. CEO Tom Erixon emphasized growth from sustainable energy demands, while a new unit focuses on hydrogen technologies to support the clean energy transition.
Société Generale Sets €500 Billion Sustainable Finance Goal for 2030
Société Generale has surpassed its €300 billion sustainable finance goal for 2020-2025 and set a new target of €500 billion for 2024-2030. The new goal includes €400 billion in financing and advisory and €100 billion in sustainable bonds, with 80% dedicated to environmental activities and 20% to social initiatives. The bank has reduced its upstream oil and gas exposure by over 50% and minimized its thermal coal exposure to under 0.1%. As a founding member of the Net Zero Banking Alliance, Société Generale aims to align its financing with global decarbonization goals and support the transition to a low-carbon economy.
Regulatory & Law
EU Adopts Regulation Banning Products Linked to Forced Labor
The EU Council has adopted a regulation prohibiting products made with forced labor from being sold or exported within the EU. The legislation, initially proposed in 2022, empowers customs and national authorities to investigate and remove such products, covering both domestic and imported goods. Non-compliant companies face fines, but products may return to the market if forced labor is eliminated from supply chains. The rules also call for a database on forced labor risks and a list of high-risk sectors and regions. The regulation will take effect three years after its publication in the EU’s Official Journal.
EU Regulators Urge Banks and Investors to Address Climate Risks Post "Fit-for-55" Stress Test
The EU’s financial regulators have released the “Fit-for-55” climate stress test results, assessing the financial sector’s resilience to the low-carbon transition. While transition risks alone are unlikely to destabilize the system, severe scenarios—like a sudden selloff of carbon-intensive assets—could lead to losses of up to €5.1 trillion, with investment funds being the most affected. Regulators call for financial institutions to integrate climate risks into management strategies and support the green transition through coordinated policies. The findings underline the need to prepare for the EU’s 2030 emissions reduction targets.
Leadership Announcement
Quinbrook Names Hilkka Komulainen Global Head of Sustainability
Quinbrook Infrastructure Partners has appointed Hilkka Komulainen as its new Global Head of Sustainability and Impact, succeeding Anne Foster. Komulainen will oversee sustainability initiatives across all Quinbrook funds and regions. Previously, she led responsible investment at Aegon UK and held leadership roles at Inter Fund Management, EY, the OECD, and the United Nations, contributing to ESG best practices. Quinbrook co-founder David Scaysbrook praised Komulainen’s extensive ESG expertise, calling her an ideal addition to drive impactful investments and large-scale decarbonization in North America, the UK, and Australia.
Starbucks Names Marika McCauley Sine as New Chief Sustainability Officer
Starbucks has appointed Marika McCauley Sine as its new Chief Sustainability Officer, succeeding Michael Kobori, who will retire at the end of 2024. McCauley Sine brings extensive experience from her nearly 10 years at Mars, where she most recently served as Chief Sustainability Officer at Mars Petcare, focusing on climate action, sustainable sourcing, and circular packaging. She has also held sustainability roles at Coca-Cola. In a statement, McCauley Sine expressed her excitement to build on Starbucks’ legacy of sustainable and socially impactful business practices. Kobori, Starbucks’ first CSO since 2020, reflected on his tenure with gratitude, highlighting Starbucks’ progress in sustainability and social justice initiatives.