News
The Finance for Biodiversity Pledge calls on states to create an ambitious biodiversity framework ahead of COP 15
Approximately 78 investors from 17 countries signed a pledge calling for states to agree on an ambitious biodiversity conservation roadmap at COP 15. Just as the financial community came together for climate change in 2015 at COP 21, the Finance for Biodiversity Pledge published a joint letter ahead...
The EU Platform on Sustainable Finance drafts its first report on the “European Social Taxonomy" for consultation
The European Union’s sustainable finance strategy intends to expand beyond green finance to include the social sphere. Therefore, the technical experts behind The EU Platform on Sustainable Finance - the body behind recommendations on this implementation - also published a first report on the EU...
The ECB seeks to incorporate climate change into its monetary policy
The European Central Bank unveiled its new monetary policy, with climate change playing a key role in its strategy. Two months ahead of schedule, European Central Bank President Christine Lagarde unveiled a detailed action plan that considers climate risk in macroeconomic modelling and risk...
LGIM drops American insurer AIG over climate policies
Four companies, including American insurer AIG, will be dropped from Legal & General Investment Management (LGIM) portfolios. The British management company is implementing its new shareholder engagement strategy and is opting out of investing in companies that no longer meet its sustainability...
The new decree under Article 29 of the French Law on Energy and Climate keeps its promise to strengthen requirements
Investors were kept in suspense concerning the environmental reporting framework set by the French Treasury Department. With the implementing decree under Article 29 of the French Law on Energy and Climate, it is now known that the government's objective is to continue its leadership on this issue...
Shareholder climate engagement sees first major victory at ExxonMobil annual meeting
The small activist investment fund Engine No. 1 recently led a campaign that resulted in the election of at least two of its candidates to ExxonMobil’s board of directors. This was a big blow for CEO Darren Woods, who bowed to pressure from investors after concern for future consequences stemming...
Financial institutions struggle to align with carbon neutrality
Has the financial sector succeeded in greening its business model? The CDP asked this question in their latest study, and their findings revealed that there’s still a long way to go. Most banks, insurance companies, and investors have begun the shift to green finance by increasing the number of...
Adoption of the EU Taxonomy Delegated Act: a move by the European Commission to avoid rejection in the European Parliament
The European Commission recently adopted the EU Taxonomy Climate Delegated Act. Drafting the text required several months of work, and during that time, pressure from various industries and member states continued to intensify. Ultimately, the text excludes natural gas and nuclear power from the EU...
The application of the Sustainable Finance Disclosure Regulation shows differing views on interpretation
Almost 25% of assets domiciled in Luxembourg are classified under Articles 8 and 9 of the Sustainable Finance Disclosure Regulation (SFDR), which classifies funds according to their degree of sustainability. Management companies have started to communicate on how they apply SFDR to their fund range,...
Under pressure from lobbies, the European Commission considers including gas in the EU Taxonomy
A leaked proposal of delegated acts involving the EU Taxonomy suggests that power plants could be replaced with gas-fired plants if they emit fewer greenhouse gases. This is an extremely negative sign according to the NGOs that believe this lobby concession goes against science.
Investors pressure HSBC to vote on phase-out of fossil fuels
Several investors supported a resolution calling for HSBC to elaborate on its climate policy. The bank finally decided to submit a new strategy to vote by its shareholders at its May 28th General Meeting. The strategy outlines its commitment to ending coal financing and aligning its activities with...
Widespread distribution of SRI has begun across networks, but not without risk
The level of French investment that ballooned during the Covid- 19 crisis helped accelerate sustainable finance in France. According to Novethic’s Market Data statistics, the market reached nearly 1,000 sustainable funds, totaling €461 billion. More than half of the funds have an SRI label and are...
BlackRock strengthens its engagement policy on climate risk
In an open letter, the world’s largest asset manager formalized climate strategy requirements for the companies in which it invests. The purpose of this offensive move is to align the asset manager’s engagement and voting practices with the intentions of CEO Larry Fink, as presented in his annual...
Pascal Canfin says the ECB should abandon market neutrality to respect the climate
The principle of market neutrality remains firmly anchored in the European Central Bank (ECB). Several Members of the European Parliament - including French MEP Pascal Canfin - have tabled an amendment to the resolution on the ECB’s annual report, urging it to reconsider market neutrality and...
Is the new mission behind the Platform on Sustainable Finance a threat to the EU Taxonomy?
Pressure from certain states? Industrial lobbying? It remains unclear why the European Commission gave the Platform on Sustainable Finance a month to provide a "transition" guide on the EU Taxonomy. One thing is for sure; this poses a dangerous risk of delaying the deployment of European sustainable...
Larry Fink leads BlackRock into a net-zero commitment, but first they’ll need to show it
Larry Fink, CEO of BlackRock, recently sent his annual letter to clients and business leaders around the globe. Fink announced that he wants to commit the company to more than $8.6 trillion in carbon-neutral assets under management by 2050. Calculation of portfolio temperatures, shareholder...
Article 173: five years on, the climate reporting pioneer struggles to transform investor practices
Novethic presents its latest review of the Article 173 reporting obligation, which is due to be replaced by another mechanism incorporating the European Disclosure Regulation. With the exception of 20 engaged actors, Article 173 seems to have failed to change the habits of institutional investors...
Greening European Infrastructure: a Challenge the EU Taxonomy is not Prepared to Meet
The European transition to a greener and more sustainable model requires transforming our modes of transportation, energy production, and waste recycling networks of all kinds. The European Commission estimates that almost €500 billion is needed annually for infrastructure of this nature. This is...
Julie Becker in Luxembourg, Julia Hoggett in London: two women appointed CEO of European Stock Exchanges
The London and Luxembourg Stock Exchanges simultaneously announced a change in management. Starting in early 2021, Julie Becker and Julia Hoggett will become CEOs of the Luxembourg Stock Exchange and the London Stock Exchange respectively. In a sector where management roles still struggle with...
The European Investment Bank is transforming to become the EU climate bank
Member States have given the European Investment Bank (EIB) the green light to begin its transformation into a climate bank. This strategy was launched last year with the phasing out of fossil fuels, and it continues this year with the bank’s intention to align all of its activities with the Paris...