ESG News

ESG News 43/2024 (21.10. – 27.10.)

Weekly ESG News: Financial Services and Insurance Industry (43/2024)

News in the spotlight: London, Zurich, Singapore rank highest in the newly published Global Green Finance Index

The Swiss financial market is solidifying its position as a hub for sustainable investments, with Zurich and Singapore surpassing Geneva in the latest Global Green Finance Index (GGFI), which ranks global financial centers based on green finance offerings. Compiled by London-based think tank Z/Yen, the GGFI ranks 97 cities, with London narrowly holding the top spot.

Products and Services

Investec partners with Holtara to accelerate progress on sustainability

Investec Bank’s Alternative Investment Management (IAIM) has entered a strategic partnership with Holtara, a sustainability services provider within the Apex Group, to accelerate sustainable lending practices. The collaboration will focus on improving IAIM’s data capture and evaluation processes, supporting its commitment to sustainable growth within its direct corporate lending platform. Managing over €3bn in private market credit, IAIM aims to offer institutional clients and family offices access to sustainable investment solutions, aligning its portfolio with net-zero targets by 2050. This partnership with Holtara enhances IAIM’s ability to deliver positive outcomes for investors and borrowers alike through sustainability-linked financing. Callum Bell of IAIM emphasized the importance of understanding data to meet client demands for sustainable investments, while Holtara’s Andrew Pitts-Tucker noted the partnership’s potential to drive positive change across the financial sector.

M&G launches sustainable bond strategy together with responsAbility

M&G has launched its first sustainable corporate bond strategy, the M&G (Lux) responsAbility Sustainable Solutions Bond Fund, in collaboration with responsAbility, a Swiss asset manager known for impact investing. Classified as Article 9 under SFDR, the fund is designed for institutional and wholesale investors looking for sustainable, active fixed-income solutions. The portfolio targets six key areas, including health, social inclusion, and climate action, and aligns investments with the UN Sustainable Development Goals. Co-managed by Mario Eisenegger and Ben Lord, the fund includes project-financing bonds and bonds from solution-provider businesses addressing environmental and social challenges. The partnership allows M&G to leverage responsAbility’s impact expertise, meeting the demand for ESG-aligned investments in the growing global market for green and sustainability bonds. The fund became available on October 18, 2024 (source: M&G).

Leadership Announcements

Richard Mattison Appointed as MSCI’s New ESG and Climate Head

MSCI has appointed Dr. Richard Mattison to lead its ESG and Climate division, bringing his extensive experience in sustainable finance from previous roles as President of S&P Global’s Sustainable1 and CEO of Trucost. Reporting to Chief Product Officer Alvise Munari, Mattison will drive MSCI’s ESG and climate product innovation and strategy. With a background that includes advisory roles with the EU and TNFD, Mattison aims to advance MSCI’s data-driven solutions for sustainability-focused investors. He highlighted MSCI’s critical role in shaping sustainable investment, noting his enthusiasm for enhancing climate and ESG insights for global asset managers and banks.

J.P. Morgan Welcomes NOAA’s Sarah Kapnick as Global Head of Climate Advisory

J.P. Morgan has appointed Dr. Sarah Kapnick, former Chief Scientist at NOAA, as Global Head of Climate Advisory for its Commercial and Investment Bank. With her expertise in climate science and sustainability strategy, Dr. Kapnick will enhance the firm’s climate advisory services and strengthen client support in navigating decarbonization and energy transition opportunities. Previously, she contributed to J.P. Morgan’s Asset and Wealth Management as a senior climate scientist, before her NOAA leadership role. Co-CEO Troy Rohrbaugh emphasized that Dr. Kapnick’s insights will be essential as clients increasingly focus on building resilience and capturing opportunities within a low-carbon economy.

Regulations and Law

SEC charges WisdomTree for not adhering to its investment criteria for ESG-marketed Funds

The SEC has charged WisdomTree Asset Management Inc. for misrepresenting its ESG investment criteria in certain ETFs from March 2020 to November 2022. Despite claims that three ESG-marketed funds avoided investments in fossil fuels and tobacco, the SEC found they included companies involved in coal mining, natural gas, and tobacco sales. WisdomTree lacked adequate screening policies and relied on inadequate third-party data. The firm agreed to a cease-and-desist order, censure, and a $4 million civil penalty, without admitting or denying the findings. The investigation was led by the SEC’s Enforcement Division and New York Regional Office (source: SEC.gov).

Hong Kong Monetary Authority Launches Sustainable Finance Action Agenda

The Hong Kong Monetary Authority (HKMA) has unveiled its Sustainable Finance Action Agenda, aiming to position Hong Kong as a leading sustainable finance hub. Key directives include requiring banks to achieve net zero financed emissions by 2050 and enhance disclosures on climate risks and opportunities. The agenda focuses on four priorities: “Banking for net zero,” “Investing in a sustainable future,” “Financing net zero,” and “Making sustainability more inclusive.” Under these priorities, banks are urged to reduce financed emissions, improve transparency in climate-related disclosures, and support sustainable investment initiatives. HKMA Chief Executive Eddie Yue emphasized the importance of addressing climate change and facilitating sustainable fund flows in Hong Kong’s role as an International Financial Centre.

ESG Data and Analytics

London, Zurich, Singapore rank highest in the newly published Global Green Finance Index

The Swiss financial market is solidifying its position as a hub for sustainable investments, with Zurich and Singapore surpassing Geneva in the latest Global Green Finance Index (GGFI), which ranks global financial centers based on green finance offerings. Compiled by London-based think tank Z/Yen, the GGFI ranks 97 cities, with London narrowly holding the top spot. Zurich now ranks second, followed by Singapore in third, pushing Geneva down to fourth place. Notably, New York has also declined in both its rating and ranking. The top 10 is rounded out by Stockholm, Los Angeles, Luxembourg, Copenhagen, and Montreal. Switzerland’s Lugano, a relatively small city, impressively placed 13th. Despite the increased competition, only six financial centers improved their ratings, indicating a slight decline in confidence regarding green finance development compared to previous surveys. Key areas of focus in sustainable investment include energy-efficient projects, fossil fuel divestment, and green loans. Western European and North American cities continue to excel due to their established experience in green finance and strong sustainability commitments.

ICE and Dun & Bradstreet to launch Climate Data and Analytics solutions

Intercontinental Exchange (ICE) and Dun & Bradstreet have announced a new climate data service aimed at providing comprehensive climate and ESG data for a vast range of public and private companies worldwide. This offering will deliver transition and physical risk data, including Greenhouse Gas Scope 1, 2, and 3 emissions, making it one of the most extensive climate data sources available. By combining Dun & Bradstreet’s vast private company database and supply chain data with ICE’s geospatial and climate capabilities, the service will give investors a single source of climate information on millions of businesses. This new product leverages Dun & Bradstreet’s D-U-N-S Number for seamless integration into investment workflows, addressing the rising demand for private company ESG data. The data solution will be part of ICE Climate, focusing on quantifying investment impacts from climate risks such as extreme weather events.

Download our Weekly ESG Newsletter 43/2024 (21.10. – 27.10.) including updates from M&G, the Global Green Finance Index, J.P. Morgan and many more here or explore all of our Weekly News.