News in the spotlight: UNEP FI introduces Human Rights Toolkit for financial institutions
On January 28, 2025, the United Nations Environment Programme Finance Initiative (UNEP FI) introduced a Human Rights Toolkit designed to assist financial institutions in aligning with the United Nations Guiding Principles on Business and Human Rights (UNGPs).
Products and Services
Schroders ready to adopt all four SDR labels for its product range of 16 funds
Schroders has announced plans to adopt all four of the Financial Conduct Authority’s (FCA) Sustainability Disclosure Requirements (SDR) labels across 16 of its funds. The SDR labels—’Sustainability Focus’, ‘Sustainability Impact’, ‘Sustainability Improvers’, and ‘Sustainability Mixed Goals’—are designed to help investors identify funds that align with specific sustainability objectives.
The funds set to adopt these labels include:
- Schroder Sustainable Future Multi-Asset Fund (‘Sustainability Mixed Goals’ label)
- Schroder European Sustainable Equity Fund* (‘Sustainability Improvers’ label)
- Schroder Global Cities Real Estate Fund (‘Sustainability Focus’ label)
This initiative follows previous announcements regarding the adoption of SDR labels for other funds within the Schroders Group, including three Cazenove Capital funds.
The Schroder European Sustainable Equity Fund is scheduled to be renamed the “Schroder European Climate Transition Fund” on 24 February 2025.
First EU Green Bond from a public sector issuer listed on Euronext
Île-de-France Mobilités listed a €1 billion Green Bond on Euronext Paris, marking the first issuance by a public entity aligned with the European Union’s Green Bond Standard. The funds will finance projects such as the renewal and renovation of electric trains, metros, trams, and the development of associated infrastructure, all in line with the European taxonomy for sustainable activities. The EU Green Bond Standard, effective from December 21, 2024, aims to provide a rigorous framework for green bond issuances, ensuring full transparency and enhanced oversight by the European Securities and Markets Authority (ESMA).
Manulife Investment Management closes Forest Climate Fund at $480mn
Manulife Investment Management has successfully closed its Forest Climate Fund, securing $480 million in capital commitments. The fund is designed to invest in sustainably managed forests across the United States, Chile, New Zealand, and Australia. Its primary objectives are to generate financial returns for investors while contributing to climate change mitigation through carbon sequestration. Additionally, the fund aims to promote biodiversity conservation and support local communities associated with these forested areas. This initiative reflects a growing trend in sustainable finance, where investment strategies are aligned with environmental and social objectives.
American Express Global Business Travel launches emissions-based carbon pricing solution
American Express Global Business Travel (Amex GBT) introduced an integrated emissions-based carbon pricing solution for corporate clients. This tool allows companies to select a carbon calculation methodology and apply corresponding fees to their air travel bookings. These fees can be displayed to travelers during the booking process and included on invoices, aiming to raise awareness of individual carbon footprints and corporate sustainability efforts. The collected fees are intended to fund various decarbonization initiatives, such as investments in sustainable aviation fuel (SAF), electric vehicles (EVs), and research and development projects. The process involves three steps:
- Selecting a carbon calculation methodology.
- Applying a carbon fee, either emission-based, flat, or categorical.
- Allocating the accumulated funds to sustainability projects.
This approach aims to create a self-sustaining fund for environmental initiatives, aligning corporate travel programs with broader emission reduction goals. By integrating carbon pricing at the point of sale, the solution seeks to engage employees and encourage more sustainable travel decisions.
France announced provisional plan to issue EUR 11bn of green bonds in 2025
On January 31, 2025, Agence France Trésor (AFT) announced a provisional cap of €11 billion for Green OAT (Obligations Assimilables du Trésor) issuances in 2025. This cap is based on the anticipated green eligible expenditures for the year, which primarily include budgetary and fiscal spending under the special law. Additionally, it accounts for eligible green expenditures from 2024 that were not matched by previous Green OAT issuances, making them eligible for 2025 in accordance with the State’s green bond framework. AFT noted that this cap is provisional and may be revised upwards depending on the 2025 Budget Law. As of now, the total outstanding amount of the four existing Green OATs stands at €76 billion.
ESG Data & Analytics
Dunya Analytics launches innovative platform for biodiversity risk
Dunya Analytics unveiled a new platform designed to help companies assess and manage their interactions with natural ecosystems. The platform offers comprehensive biodiversity analytics and is aligned with global frameworks such as the Taskforce on Nature-related Financial Disclosures (TNFD), the EU’s Corporate Sustainability Reporting Directive (CSRD), and the Science Based Targets Network (SBTN). Notably, it integrates data concerning Indigenous Peoples’ and local communities’ lands, acknowledging their crucial role in conservation efforts.
The platform employs a science-based methodology that synthesizes various nature-related datasets into an automated system, providing users with clear and actionable insights. This approach enables businesses to analyze their nature-related risks and opportunities without requiring extensive technical expertise. The tool aims to assist organizations in navigating complex sustainability requirements and identifying opportunities for sustainable growth.
This development comes amid increasing recognition of the financial risks associated with biodiversity loss and ecosystem degradation. As regulatory frameworks evolve and investors demand greater transparency, tools that facilitate the measurement and management of nature-related risks are becoming essential for businesses aiming to achieve sustainability goals.
RepRisk makes data available to bloomberg customers
RepRisk announced that its business conduct and Environmental, Social, and Governance (ESG) risk data is now accessible to Bloomberg customers. This integration allows Bloomberg Terminal and Data License subscribers to access RepRisk’s dataset, which covers over 100 risk factors across more than 280,000 companies globally. RepRisk employs artificial intelligence models trained on over two decades of human analyst-labeled data, adopting an outside-in approach that excludes company self-disclosures. This collaboration aims to provide financial professionals with timely and actionable insights into companies’ business conduct risks, supporting various use cases such as due diligence, risk management, benchmarking, quantitative investment, and index construction.
Regulations, Law and Frameworks
UNEP FI introduces Human Rights Toolkit for financial institutions
On January 28, 2025, the United Nations Environment Programme Finance Initiative (UNEP FI) introduced a Human Rights Toolkit designed to assist financial institutions in aligning with the United Nations Guiding Principles on Business and Human Rights (UNGPs). Developed in collaboration with the European Investment Bank (EIB), the toolkit offers a structured approach to integrating human rights considerations into financial operations.
The toolkit is organized around three core components:
- Policy Commitment: Guidance on establishing and embedding human rights policies within financial institutions.
- Human Rights Due Diligence: Processes to identify, prevent, and mitigate adverse human rights impacts.
Access to Remedy: Strategies to provide or cooperate in remediation when institutions cause or contribute to negative human rights impacts.
The toolkit includes case studies from organizations leading in human rights practices, providing practical insights for financial institutions. It is intended primarily for banks but is also relevant to investors, insurance companies, civil society, states, and national human rights institutions.
IFRS Foundation publishes guide to help companies how to publish climate-related information only under ISSB Standards
The IFRS Foundation released a guide titled “Applying IFRS S1 when reporting only climate-related disclosures in accordance with IFRS S2.” This publication aims to assist companies in reporting solely climate-related information using the International Sustainability Standards Board (ISSB) Standards. The guide addresses the ‘climate-first’ transition relief, allowing companies to focus initially on climate-related disclosures under IFRS S2 while applying relevant requirements from IFRS S1. This approach responds to investor demands for immediate climate-related data and acknowledges concerns about data availability and corporate readiness for broader sustainability reporting. The guide is part of the ISSB’s commitment to supporting the implementation of its standards, aiding companies in preparing useful information for investors.
Leadership Announcements
BDO has appointed Hannah Routh as its Head of Sustainability and ESG
Accountancy and business advisory firm BDO announced the appointment of Hannah Routh as its Head of Sustainability and Environmental, Social, and Governance (ESG). This strategic move aims to enhance BDO’s capabilities in providing advisory services related to sustainability and ESG matters. Hannah Routh brings extensive experience in sustainability consulting, having previously held leadership roles in the field. Her expertise encompasses advising businesses on integrating sustainable practices and navigating ESG-related challenges. This appointment reflects BDO’s ongoing commitment to strengthening its advisory services in response to the growing importance of sustainability and ESG considerations in the business landscape.