Weekly ESG News: Financial Services and Insurance Industry
News in the spotlight: WTW appoints Peter Carter to lead Climate Practice
Global advisory, broking, and solutions company WTW has appointed Peter Carter as the head of its climate practice, unifying climate and risk analytics under common leadership. This move is aimed at assisting clients in quantifying, mitigating, and transferring climate-related risks. Carter, who has over 25 years of industry experience, will lead this effort. WTW intends to align more closely with client demands in addressing climate risks, leveraging its expertise and core risk and analytics capabilities.
Weekly Sustainable Finance Newsletter 41/2023
ESG News of the last week in detail
Products and Services
Franklin Templeton launches ESG improver fund
Franklin Templeton and ClearBridge Investments have introduced a new global value equity fund called the FTGF ClearBridge Global Sustainability Improvers Fund. This fund is aimed at investing in companies that are actively improving their Environmental, Social, and Governance (ESG) practices, rather than just those with already strong ESG profiles. It focuses on undervalued companies and maintains a concentrated portfolio of 30-40 equity securities. The fund is compliant with the EU’s Sustainable Finance Disclosure Regulation and will initially be available in select European countries. By investing in companies in the early stages of their ESG journey, the fund aims to reduce operating risks and contribute to sustainable economic growth.
Climate change tops list of reasons for portfolio exclusions in financial sector
Concerns about climate change are the primary reason for financial groups to exclude companies from their portfolios, according to research by environmental and sustainability organizations. The study found that 40% of exclusions were due to climate change concerns, with weapons manufacturing and tobacco accounting for 17% and 12%, respectively. The research, based on 150 pension funds, insurance companies, and banks, identified 4,532 excluded companies by 87 financial institutions in 16 countries.
ESG Data and Analytics
MSCI expands climate solutions with Trove Research acquisition
MSCI, an investment data provider, is acquiring Trove Research, a specialist firm focused on corporate climate action and carbon markets. This move allows MSCI to enter the evolving carbon market ecosystem and provide insights into companies’ transition plans and carbon credit pricing. The acquisition aims to strengthen MSCI’s position in climate-related investment solutions, as demand for carbon offset projects and credits is expected to rise due to net-zero ambitions. Trove Research, founded in 2015, specializes in tracking corporate climate commitments and the voluntary carbon credit market, and the acquisition will help create comprehensive climate solutions by combining both companies’ expertise.
Leadership Announcements
WTW appoints Peter Carter to lead Climate Practice
Global advisory, broking, and solutions company WTW has appointed Peter Carter as the head of its climate practice, unifying climate and risk analytics under common leadership. This move is aimed at assisting clients in quantifying, mitigating, and transferring climate-related risks. Carter, who has over 25 years of industry experience, will lead this effort. WTW intends to align more closely with client demands in addressing climate risks, leveraging its expertise and core risk and analytics capabilities.
Net Zero / Decarbonization Commitments
ING Bank released its 2023 Climate Report
ING Bank has released its 2023 Climate Report, emphasizing its commitment to addressing climate change. The report highlights ING’s efforts to steer carbon-intensive sectors in its loan portfolio toward global climate goals using the Terra approach. It also sets targets for decarbonizing various industries, including oil and gas, steel, shipping, and aluminum. ING is integrating climate considerations into its decision-making processes and expanding its Terra approach into areas like Business Banking and global commercial real estate. The bank is actively calling for government and regulatory support to accelerate the global economy’s decarbonization. This report reflects ING’s commitment to sustainability and its ongoing efforts to drive positive change in the face of climate challenges.
Green Bond & ESG Bond Issuances
EIB Invests €150 Million in Valeo's €600 Million Green Bond for sustainable mobility projects
The European Investment Bank (EIB) has invested €150 million in Valeo’s inaugural €600 million green bond issue, marking the EIB’s first such operation in France. The funds raised will support projects in clean transport, renewable energy, energy efficiency, sustainable water and wastewater management, and the circular economy. Valeo has committed to achieving carbon neutrality by 2050 and reducing emissions by 45% by 2030. The bond will help Valeo expand its low-carbon mobility technologies, especially in vehicle electrification. The EIB’s involvement aims to attract long-term financing for green investments on public debt markets.