What’s Happening in Sustainable Finance: Innovation is the Name of the Game

Episode Summary Hosts Nicholas Gandolfo, Director, Corporate Solutions Marika Stocker, Senior Manager, Corporate Solutions The recurring theme in this episode’s round up of market developments is innovation! Nick also offers a list of recommended reading for the month (be prepared, it’s a long one) and concludes the tale of his encounter with an elephant in Bangladesh first mentioned in October’s episode. Innovation is the Name of the Game in Sustainable Finance The thread of innovation continues throughout sustainable finance – from green cryptocurrency to ESG derivatives, and relinked sustainability instruments (sustainability-linked bonds tied to sustainability-linked loans). Ultimately, it’s good to see the market continue to develop, but caution and scrutiny are needed to ensure that labeling and the increasing complexity of financial instruments don’t lead to greenwashing. Greening of IPOs On the heels of Allbirds’ initial public offering (IPO), for which Sustainalytics provided a corporate ESG assessment of the company, there are continuing discussions about the greening of IPOs. As the number of companies going public continues to rise, they are each looking for ways to signal to investors that they are a safe bet when it comes to managing material ESG risk and overall company management. Having their ESG or sustainability performance assessed by a third-party prior to their IPO is one way to do that. Watch this space as we see how this trend develops for new IPOs in 2022. Recommended Reading Nick runs down a list of reports and research focused on reducing emissions and transition finance. IEA – Tracking Report: Methane Emissions from Oil and Gas McKinsey – Curbing Methane Emissions: How Five Industries Can Counter a Major Climate Threat IEA – Global Hydrogen Review 2021 IEA – An Energy Sector Roadmap to Carbon Neutrality in China Energy Transitions Commission – Keeping 1.5°C Alive: Actions for the 2020s HSCB – A Practitioner’s Guide to Net Zero for Banks   Key Moments 01:28 Market overview 02:00 Greening of IPOs 02:40 Google adds carbon data to flight info 03:00 Green cryptocurrency 03:32 EF conference - ESG Risk Ratings 04:08 ESG derivatives 04:46 Taxonomy report from Natixis 05:11 Nuclear power in sustainable finance 05:46 COP 26 highlights 06:19 New in sustainability-linked finance: relinked SLB 07:04 Biodiversity COP15 highlights 07:31 Green industry unicorns 08:03 Report recommendations: McKinsey & IEA methane reports 08:40 CBI interactive data tool 09:36 Green bonds overview 15:10 Social bonds and loans overview 21:21 Audience questions 28:21 SLL overview 30:53 Labeled products overview 32:16 Transition finance overview 33:30 Regulatory and country update   Links to Select Resources Natixis – The New Geography of Taxonomies CBI Interactive Data Platform CBI – China Green Securitization State of the Market 2020 Oilprice.com - EU’s Green Bond Debut Comes Out Swinging Forbes - Africa’s Seychelles Blue Bond Economy Inspires Belize Natural Gas World - Japan's Inpex Issues Its 1st Green Bonds Reuters - APICORP sells $750 million in debut green bonds Sustainalytics SPOs: Kvika Bank Green Financing Framework Second-Party Opinion The Famur Group Green Bond Framework Second-Party Opinion Autodesk Sustainability Financing Framework Second-Party Opinion OVS Group Sustainability-Linked Bond Framework Second-Party Opinion Autonom Sustainability-Linked Bond Framework Second-Party Opinion More Episodes

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