What’s Happening in Sustainable Finance: Impact Reporting for Bonds, the Low-carbon Transition for the Cement Industry, and More

Episode Summary

Hosts

• Nicholas Gandolfo, Director, Corporate Solutions
• Marika Stocker, Senior Manager, Corporate Solutions

In this episode, Nick and Marika welcome special guest Simon Vacklen, Senior Manager with Sustainalytics’ Corporate Solutions  to discuss impact reporting for use of proceed bonds. As more funds are allocated to labeled and sustainability-linked bonds, there is growing demand from investors to understand and measure the positive impact of the assets and projects financed. Simon notes that while the current focus is on environmental and climate impacts, such as the amount of greenhouse gases avoided, the market is also looking toward ways to effectively quantify positive social impact.

Sustainalytics Launches Impact Reporting for Bonds and Loans

To support companies and investors looking for opportunities to analyze and investigate the impact of their projects and investments, Sustainalytics now offers Impact Reports for Bonds and Loans. Available for pre- and post-issuance assessments, the reports provide issuers with a credible and independent analysis of the impacts both expected and achieved by financed projects.

Climate Bonds Standard Shares Criteria for Hard-to-Abate Sectors

The Climate Bonds Standard announced that it will be expanding to include criteria and certification for credible transition for heavy industrial sectors, starting with the cement industry. The cement criteria will provide science-based requirements which identify when investment and activity in the sector are aligned with the transition to the Paris Agreement objectives. Throughout 2022, the Climate Bonds Standard plans to expand its criteria to support the low-carbon transition of other heavy-emitting sectors such as basic chemicals and steel.   

Download Our New eBook, Understanding Materiality: Lessons From Industries With High ESG Risk

The business case for addressing material ESG issues is clear: the effective management of ESG risks can contribute to superior long-term enterprise value. Sustainalytics Corporate Solutions can help you better understand how ESG risks can impact your operations. Download our analysis of the five industries with the highest ESG risk to learn how companies in any industry can find opportunities for improving ESG risk management.

 

Key Moments

0:01:10	Market news
0:01:52	AFME - ESG Finance Report 2021
0:02:23	Green bond market forecast for 2022 and beyond
0:02:57	Nuclear and gas debate in the EU green taxonomy
0:03:18	Environmental Finance Sustainable Bonds Insight 2022
0:03:57	Boom in sovereign green issuances
0:04:09	IFC updates guidelines for blue bonds
0:04:18	Transition bond debates continue
0:04:34	Ongoing discussion around mapping Scope 3 emissions
0:05:01	Outlook on scaling up carbon markets
0:05:35	ISSB and the harmonization of disclosures
0:06:13	Challenge directed at SBTi process
0:06:59	EU Green Bond Standards
0:07:04	CBI report on premiums for green and social bonds
0:07:52	CBI China Transition Report
0:08:06	Climate Bonds Standard transition criteria for cement sector
0:08:28	Special Guest - Simon Vacklen discusses impact reporting for green and social bonds
0:16:45	SLB overview
0:21:03	SLL overview
0:25:25	Audience questions
0:30:38	Green bonds overview
0:34:13	Green loans overview
0:35:49	Social bonds and loan overview
0:36:39	Labeled products overview
0:38:25	Transition bond and regulatory news

 

Links to Select Resources

• AFME - ESG Finance Q4 and Full Year 2021 - European Sustainable Finance
• Bloomberg - Emerging ESG Bond Boom Puts World on Path to Sell $1.8 Trillion
• DW - European Commission declares nuclear and gas to be green
• Environmental Finance – Sustainable Bonds Insight 2022
• International Finance Corporation – Guidelines for Blue Finance
• South China Morning Post - Sustainable finance: why transition bonds and loans are not popular even as demand for green and sustainable products is growing
• Environmental Finance – The Changing Shape of the Carbon Markets
• BBC News - Climate Change: Top Companies Exaggerating Their Progress - Study
• Official Monetary and Financial Institutions Forum - Greenium set to stay, say sovereign debt issuers
• Climate Bonds Initiative – Transition Finance in China
• Sustainalytics – Maximum Impact: How Bond Impact Reporting Can Improve Corporate Decision Making
• Sustainalytics SPOs:
  • Fabbrica Italiana Sintetici Sustainability-Linked Bond Second-Party Opinion
  • Cellnex Sustainability-Linked Financing Framework Second-Party Opinion
  • Sparebanken Sør Green and Sustainability Bond Framework Second-Party Opinion
  • Central American Bank for Economic Integration Social Bond Annual Review
  • iA Financial Group Sustainability Bond Framework Second-Party Opinion

 

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