News in the spotlight: LGFA launches sustainable water loan programme for councils
The New Zealand Local Government Funding Agency (LGFA) has launched the Sustainable Water Action Loan (SWALe) programme, a sustainability-linked lending product for Council-Controlled Organisation water entities formed under the Local Water Done Well reforms.
Products and Services
Crédit Agricole CIB launches Asia Pacific’s first ESG-linked trade finance solution
Crédit Agricole CIB has launched Smart Platform Assisted SustainablE, the first ESG-linked trade finance solution in Asia Pacific. The AI-powered platform leverages trade transaction data to generate a measurable, auditable view of ESG performance across suppliers, products and trade flows, giving corporates an ESG dashboard for every transaction in their trade finance portfolio. SPASE transforms raw transaction data into aggregated ESG dashboards and actionable intelligence, enabling companies to review value chain operations, rebalance portfolios and reduce operational costs by expanding relationships with high-impact suppliers. The platform eliminates the bottleneck where many trade corporates face barriers tracking ESG performance across global supply chains, tapping into an unexplored market segment in the region. The solution integrates sustainability directly at the transaction level, motivating suppliers to invest in operational improvements to achieve higher ESG scores for more commercial opportunities.
LGFA launches sustainable water loan programme for councils
The New Zealand Local Government Funding Agency (LGFA) has launched the Sustainable Water Action Loan (SWALe) programme, a sustainability-linked lending product for Council-Controlled Organisation water entities formed under the Local Water Done Well reforms. Each SWALe is designed to incentivise borrowers to improve their contribution to Planetary Boundaries through science-based targets. Under the programme, borrowers must adopt and track targets using a Planetary Boundaries approach and report against two KPIs: a mandatory Nitrogen and Phosphorus KPI covering nutrient pollution, and one optional KPI chosen from Biogenic GHG Emissions, Embodied Carbon, or Water Efficiency. Borrowers that meet agreed targets receive a financial incentive in the form of a more favourable loan margin, making the loan cheaper as environmental performance improves. SWALes are available to all eligible Water CCO borrowers, including those that do not have specific green or social projects.
SCALED aims to turn one-off deals into a scalable sustainable finance platform
Allianz and Zurich have launched SCALED, a public-private platform and investment firm designed to standardise blended finance and mobilise billions for sustainable development. Launched July 2026, SCALED aims to overcome the high transaction costs, inconsistent standards and lack of replicable structures that have limited the scale of blended finance in emerging markets. The platform combines public de-risking capital with private institutional capital to create investable, risk-adjusted products that can be replicated across geographies and sectors. Its model is built on the experience of Allianz’s existing blended finance funds such as EMCAF and AfricaGrow, which use junior public capital to absorb first losses and make senior private capital more attractive. Public funds provide first-loss protection and co-investment, while private investors supply the majority of financing, with the structure enabling further leverage through local co-investors and project-level debt. SCALED’s goal is to move from isolated deals to a standardized, scalable pipeline of projects that can be funded repeatedly, turning blended finance into a mainstream asset class.
Lloyds Bank and Wildfarmed launch funding scheme for regenerative farming
Lloyds Banking Group and regenerative farming business Wildfarmed have launched the Food & Nature Resilience Fund, a cross-sector funding scheme designed to make the transition to nature-positive arable farming commercially viable without taking land out of food production. The fund pools investment from banks, utility companies, insurers and other businesses across and beyond the food supply chain to reward farmers for delivering verified improvements in biodiversity, soil health, water quality and carbon outcomes. Initial partners include water companies Severn Trent and Affinity Water and commercial insurer AXA XL, with year-one ambition set at GBP 1.3 million and further growth expected as more farmers and partners join. The initiative targets the UK’s three million hectares of arable farmland, seeking to address the financial barriers that 92% of farmers say are the biggest obstacle to switching practices. By creating a model that pays for resilience and natural capital alongside food, the fund aims to scale regenerative agriculture and align environmental and economic returns across the sector. Eligibility criteria and application processes have not yet been announced.
Regulations, Law and Frameworks
ESMA launched consultation to simplify EU Taxonomy disclosure
ESMA has launched a six-week consultation on technical advice to simplify the EU Taxonomy disclosure framework for non-financial undertakings and asset managers, with the aim of reducing reporting burdens while preserving investor relevance. The consultation runs until 12 August 2026 and will be followed by a public hearing on 22 July, with final advice to the European Commission due by end-October 2026. Key proposals include simplifying the operational expenditure (OpEx) key performance indicator, which stakeholders have flagged as complex and burdensome, and exploring a pragmatic solution for group-level reporting in mixed groups and financial conglomerates based on the parent undertaking’s reporting model. The advice also seeks to improve alignment with European Sustainability Reporting Standards (ESRS), introduce targeted reporting reliefs and materiality considerations, and streamline KPIs, templates and disclosure requirements including sector-specific elements.
New Zealand drafts roadmap to adopt IFRS S2 for climate reporting
New Zealand’s External Reporting Board (XRB) has launched a consultation on a draft climate reporting roadmap that proposes replacing the current Aotearoa New Zealand Climate Standards (NZ CS) with a new NZ IFRS S2 Climate-related Disclosures standard based on IFRS S2. The roadmap seeks to keep New Zealand internationally aligned, harmonised with Australia, and locally relevant. The proposed timeline gives preparers a long transition: early adoption from 1 October 2026, with mandatory application from 1 January 2033, and an option to continue using NZ CS until that date. The XRB is considering whether to adopt IFRS S2 as the core standard, what modifications may be needed for New Zealand’s legislative and regulatory settings, and how to address differences with Australia’s AASB S2 and Corporations Act requirements. Key differences highlighted include IFRS S2’s more prescriptive requirements on connected information, significant judgements, value chain considerations, transition plan assumptions, and its explicit requirement to use the GHG Protocol. The consultation closes on 30 September 2026.