Weekly ESG News: Financial Services and Insurance Industry
News in the spotlight: DBS launches hybrid financing solution for companies to support ESG agenda
DBS Bank has introduced an innovative financial solution, the DBS Eco Renovate Loan, aimed at supporting small and medium enterprises (SMEs) in financing sustainability initiatives. This loan allows SMEs to borrow up to 100% of the costs associated with green renovation projects that utilize resource-efficient or energy-optimized solutions at favorable terms. Companies can also combine this loan with a traditional commercial loan to finance their complete renovation needs. This initiative aims to fill the gap in sustainable financing for SMEs and is aligned with internationally recognized Green Loan Principles. Additionally, DBS offers sustainability skills training and a comprehensive support program for SMEs in developing and implementing sustainability strategies.
Weekly Sustainable Finance Newsletter 43/2023
ESG News of the last week in detail
Products and Services
Fidelity real estate launches climate impact fund
Fidelity International has acquired a central London office property for an undisclosed amount on behalf of its new European value-add real estate climate impact fund. This asset, 99 Queen Victoria Street (99 QVS), is the fund’s first purchase and will undergo refurbishment to provide 88,000 square feet of office space. The fund, Fidelity’s first Article 9 fund under EU Sustainable Finance regulations, aims to invest in properties that support climate change mitigation and the transition to net zero carbon. Their strategy involves refurbishing existing commercial real estate assets in Western Europe to create sustainable workspaces, with an expected holding period of three to five years. This initiative recognizes the potential for impact in transforming existing buildings into eco-friendly spaces, meeting both environmental and market demands.
DBS launches hybrid financing solution for companies to support ESG agenda
DBS Bank has introduced an innovative financial solution, the DBS Eco Renovate Loan, aimed at supporting small and medium enterprises (SMEs) in financing sustainability initiatives. This loan allows SMEs to borrow up to 100% of the costs associated with green renovation projects that utilize resource-efficient or energy-optimized solutions at favorable terms. Companies can also combine this loan with a traditional commercial loan to finance their complete renovation needs. This initiative aims to fill the gap in sustainable financing for SMEs and is aligned with internationally recognized Green Loan Principles. Additionally, DBS offers sustainability skills training and a comprehensive support program for SMEs in developing and implementing sustainability strategies.
ESG Data and Analytics
S&P Global Market Intelligence enhances climate credit analytics
S&P Global Market Intelligence and Oliver Wyman have announced an enhancement to the Climate Credit Analytics solution. It now includes climate-related physical and energy transition risk assessments for over 20,000 companies, helping clients understand their exposure to climate change hazards. This solution, developed through collaboration, was initially launched in June 2021 to help financial institutions and corporations assess the impact of climate change and the transition to a low-carbon economy on their investments. It incorporates various climate scenarios, additional datasets, and sector-specific information. It is used for regulatory climate stress testing and aligns with the recommendations of the Task Force for Climate-Related Financial Disclosures.
Bloomberg and Riskthinking.AI launch physical risk indicators
Bloomberg and Riskthinking.AI have launched pioneering physical risk indicators that encompass all climate scenarios endorsed by the IPCC. These indicators, available on the Bloomberg Terminal and via Bloomberg Data License, assess exposure to climate vulnerabilities like floods, droughts, and wildfires by combining extensive climate projections and data on over 1 million physical assets. Users can gauge their physical risk exposure level on a 0 to 100 scale, aiding decision-making in the complex financial and regulatory landscape while aligning with global sustainability reporting standards.
TMF Group launches new ESG administration services
TMF Group has introduced new ESG administration services to assist companies and fund managers in creating and maintaining accurate ESG reports. ESG reporting is vital for sustainable and responsible business practices, impacting investment decisions, regulatory compliance, and consumer preferences. Outsourcing ESG administration services offers benefits such as expertise, cost savings, data accuracy, scalability, risk management, and the ability to focus on core activities. This service will help clients comply with ESG reporting requirements and can be used for audits, investor management, and customer inquiries, according to Daniel Max, TMF Group’s Head of Global Solutions, and Pierre Lechat, TMF Group’s Head of ESG Solutions.
Regulatory and Law
Brazil to require application of ISSB standards from 2026
Brazil will adopt the ISSB’s inaugural sustainability standards, IFRS S1 and IFRS S2, for voluntary reporting starting in 2024, and these disclosures will become mandatory for all listed companies from January 1, 2026. The Brazilian Securities Commission (CVM) issued Resolution 193 to facilitate this transition, marking a significant milestone for Brazil and CVM as the first country and regulator in the world to adopt these sustainability reporting rules. This transition period allows companies to prepare for both reporting and assurance requirements, with the intention of ensuring the entire package of standards and assurance is in place by 2026. The English versions of the standards will be used initially, with Portuguese translations expected to follow. The ISSB commended Brazil’s leadership in this move toward adoption of sustainability reporting standards.
ASIFMA issued recommendations on carbon market development
The Asia Securities Industry & Financial Markets Association (ASIFMA) has launched a report titled “Upscaling Carbon Markets Across APAC.” The report aims to improve carbon market development in the Asia Pacific (APAC) region, focusing on compliance carbon markets (CCMs) and voluntary carbon markets (VCMs). It provides recommendations for governments, regulators, and financial market participants to enhance the integrity and decarbonization capacity of these markets. Topics covered include ambition and planning, principles and policies, legal and regulatory classification, systems and infrastructure, regulation and oversight, and emissions data integrity. ASIFMA hopes these recommendations will support decarbonization efforts in APAC.
Leadership Announcements
M&G appoints Kathy Ryan as Chief Sustainability Officer
M&G plc has appointed Kathy Ryan as Chief Sustainability Officer, where she will lead the company’s sustainability strategy and promote responsible long-term investment. Kathy brings extensive experience in sustainable investing, having previously worked at Irish Life Investment Management and founded an ESG research firm. She will report to M&G’s Chief Financial Officer, Kathryn McLeland, and aims to contribute to sustainability efforts, including initiatives like PruFund Planet and the Catalyst investment strategy. Kathy Ryan is set to assume her role on November 13 and is enthusiastic about enhancing M&G’s sustainability approach.
Barclays appoints Denise Wong as Head of Sustainable and Impact Banking, Asia Pacific
Barclays has appointed Denise Wong as the Head of Sustainable and Impact Banking for the Asia Pacific region, based in Hong Kong. She will advise corporate and institutional clients on sustainability objectives in the transition to a low-carbon economy, reporting to Vanessa Koo, Head of Investment Banking. With over 20 years of experience, including roles at VU Venture Partners and Green Monday, Ms. Wong’s appointment highlights Barclays’ commitment to supporting sustainability goals in the Asia Pacific. She will also report to Brian Reilly and Marie Freier, Global Co-Heads of Sustainable and Impact Banking.