Weekly ESG News: Financial Services and Insurance Industry
News in the spotlight: Euronext launches new ESG solutions
Euronext has launched a series of ESG initiatives during its inaugural Euronext Sustainability Week to promote sustainable finance across Europe. These initiatives include “My ESG Profile,” a digital tool for issuers to showcase their sustainability efforts and provide investors with ESG data, and the creation of the Euronext Biodiversity Enablers index, highlighting companies’ positive impacts on biodiversity. Euronext is also enhancing ESG education for listed companies and launching the “Euronext Foundation” to support sustainable communities and projects. These efforts aim to drive positive change and align with the CSRD directive, emphasizing the importance of improved ESG standards in sustainable finance.
Weekly Sustainable Finance Newsletter 36/2023
ESG News of the last week in detail
Products and Service
Euronext launches new ESG solutions
Euronext has launched a series of ESG initiatives during its inaugural Euronext Sustainability Week to promote sustainable finance across Europe. These initiatives include “My ESG Profile,” a digital tool for issuers to showcase their sustainability efforts and provide investors with ESG data, and the creation of the Euronext Biodiversity Enablers index, highlighting companies’ positive impacts on biodiversity. Euronext is also enhancing ESG education for listed companies and launching the “Euronext Foundation” to support sustainable communities and projects. These efforts aim to drive positive change and align with the CSRD directive, emphasizing the importance of improved ESG standards in sustainable finance. Read more here.
Fidelity International launches new Art. 9 SFDR Funds
Fidelity International has expanded its sustainable investment offerings with the introduction of two new Article 9 funds under the EU’s Sustainable Finance Disclosure Regulation (SFDR), in addition to reclassifying four existing funds from Article 8 to Article 9. This brings their total Article 9 fund offerings to eight. The expansion is a response to increasing client demand for sustainable investment strategies. Each fund now exclusively invests in sustainable options, aligning with the EU Taxonomy and Fidelity’s SDG tool. Fidelity’s Chief Sustainability Officer, Jenn-Hui Tan, emphasized their commitment to developing products that align with the transition to a sustainable economy.
KKR and Infracapital's £870 Million Investment Fuels Zenobē's Electrification and Storage Expansion
KKR and Infracapital have invested a total of £870 million in Zenobē to support their initiatives in fleet electrification and grid-scale battery storage. This investment makes KKR and Infracapital joint majority stakeholders in Zenobē, with Jera and TEPCO Power Grid remaining as minority shareholders. Zenobē’s recent focus includes £750 million investment in three battery storage projects in Scotland, aiming to provide 1 GW of storage capacity by 2026. They have also played a significant role in electric bus deployment, supporting over 1,000 electric vehicles globally and aiming to expand to 4,000 by 2026. Zenobē currently operates 430 MW of grid-scale battery storage in the UK and plans to commission 1.2 GW in the UK by 2026 and 2.5 GW in North America and Australia by 2030.
Leadership Announcements
IFM Investors appoints Maria Nazarova-Doyle as Head of Sustainable Investment
IFM Investors has appointed Maria Nazarova-Doyle as Head of Sustainable Investment. Based in London, she will lead the Global Sustainable Investment team, focusing on sustainability initiatives across the global portfolio. Nazarova-Doyle brings experience from roles at Scottish Widows, JLT Employee Benefits, and Mercer. She is also involved in various sustainability and stewardship committees and joins IFM’s growing sustainable investment team, which operates across asset classes. IFM Investors manages funds invested in critical assets like infrastructure and renewable energy. Nazarova-Doyle aims to strengthen sustainability practices and create positive change in the real economy while delivering returns for clients.
Regulatory and Law
HKMA issued Net-Zero transition principles for Hong Kong Banks
The Hong Kong Monetary Authority (HKMA) has directed banks to integrate net-zero transition planning into their operations. The HKMA’s principles emphasize setting clear objectives aligned with a net-zero transition and Paris Agreement goals, integrating transition considerations into internal processes, engaging with clients on transition pathways, enhancing transparency, and regularly updating transition plans in response to evolving climate scenarios. These measures aim to promote financial system stability and align with global efforts to combat climate change.
Net-Zero / Decarbonization Commitments
Allianz's announced net zero transition plan 2023 for core business
Allianz, a leading insurance and investment group, has unveiled ambitious climate commitments, including investing €20 billion (USD$21 billion) in climate and cleantech solutions by 2030. They have also released their first comprehensive net-zero transition plan, aiming to achieve net-zero emissions by 2030 in their operations and by 2050 in their investment and underwriting portfolios. Allianz plans to achieve 150% profitable growth in revenues from renewable energy and low-carbon technology solutions by 2030, expand their coverage to emerging hydrogen technologies, reduce carbon emissions in their motor and commercial insurance segments, and strengthen their net-zero-focused engagement with customers and investee companies. Allianz CEO Oliver Bäte emphasized the urgency of addressing climate change and the company’s commitment to partnering with stakeholders to create a more sustainable future. Read more here.