SUSTAINABLE FINANCE

Sustainable Finance

Sustainable finance brings together Socially Responsible Investment (SRI), solidarity finance, green finance and is often known as responsible investing. Sustainable finance is mainly focused on the fight against climate change through impact investments and green funds.

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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...

Taxonomy

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 PDG BlackRock oBlackRock

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...

Final Report 173

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...

Couv etude infra Anglais

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 LGX web 01

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...

Banque européenne d'investissement @EIB

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...

Bourse Coronavirus 2

2020 dividends: the second wave of covid-19 could dampen bank expectations

The third-quarter rebound in the economy that followed the end of the first lockdown, enabled banks to improve their results. With a stronger balance sheet and profits in their pockets, they want to be able to pay dividends to their shareholders – an indispensable condition for remaining appealing...

Pompage petrole CC0

Exclusions from the most controversial oil and gas projects signal a broader movement

A study published on October 20th by the Australian Institute IEEFA - which specializes in the economic and financial analysis of the energy sector - examined the policies of 50 major investors who exclude oil sands and Arctic gas drilling. Their conclusion: an exodus of financial flows from fossil...

Drapeau Luxembourg bofotolux

The LuxFlag ESG label — overwhelmingly awarded to Danske Bank funds — wants to play an important role on the European market

LuxFLAG, a Luxembourg-based organization that awards sustainable finance labels, issued a press release at the end of September announcing that it had labelled 100 new funds. It has, thus, passed the threshold for labelling 300 funds (ESG, Environment, and Microfinance). Interesting fact: 82 of...

Dividendes EternalCreative

COVID-19: More than $100 billion in dividend payments have been lost due to the pandemic

Many companies have chosen to cut or suspend dividend payments due to pressure from governments or their own cash flow situations. According to Janus Henderson's study, global shareholder payouts decreased by 22% in the second quarter of 2020 and by as much as 57% in France. This was the worst...

Ouverture NYSE bourse coronavirus BryanRSmith AFP 01

Financial markets continue to rise, contridicting the reality of the global economy

The economy is collapsing, American unemployment figures are skyrocketing, and business prospects are poor…and despite it all, financial markets are soaring. Backed by stimulus packages and new money injected into the system, stock markets seems to be in a rapid recovery. This is a risky assumption...

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Bank of America commits $1 billion to reducing economic and racial inequalities

Following the death of George Floyd in the United States, the anti-racism movement, led by Black Lives Matter, has moved Bank of America to fight against inequality. Over a four-year period, the company plans on donating $1 billion to projects focused on education, health and economic development in...

Camion charbon glencore Australie Glencore

The Norwegian sovereign wealth fund blacklists Glencore, Anglo american

The Norwegian sovereign wealth fund introduced new criteria-based exclusions to divest itself from coal. Strongly committed to the fight against global warming, the fund recently classified large coal mining companies on the same level as high-emitting utility and oil companies. For now, Glencore...

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Controversy mounts over Blackrock’s environmental and social advisory role for the European commission

The European Commission recently hired BlackRock, the world's largest asset manager, to help advise on environmental, social and governance standards concerning banks. This was a startling decision for the European NGO Finance Watch, which estimates that BlackRock is set to act as judge and jury in...

Ouverture NYSE bourse coronavirus BryanRSmith AFP 01

Coronavirus : Rehumanize finance to reprogram high frequency trading

Since February 20th, global markets have dropped an average of 30% due to a massive plummet that was soon followed by a temporary upswing. The cause of these massive fluctuations is High Frequency Trading (HFT), a system controlled by pre-programmed algorithms which overreact to even the slightest...

Place de la concorde vide mardi 17mars coronavirus LudovicMarin AFP

As Covid-19 brings the world to its knees, could this be the opportunity for a new beginning?

“To stop the virus, we must kill the economy”, stated one American finance expert, and it is the remedy being applied by an increasing number of countries. Stock markets are plummeting, companies are closing their doors, people are going into confinement and consumption – the economic motor of...

Taxonomy : Europe agrees on a “green list”… but hesistates on nuclear energy

The European Commission has been committed to directing financial flows towards activities that will allow Europe to achieve carbon neutrality by 2050. A group of experts recently submitted a list of key sectors for investment in order to achieve this goal. Nonetheless, nuclear energy—which emits...

Plateforme ExxonMobil sur le champ D Hebron au Canada

Investor payouts show oil majors live well beyond their means

The largest oil companies live well above their means, according to a study by the Institute for Energy Economics and Financial Analysis (IEEFA). Despite their steadily declining economic weight, oil majors continue to pay out generous dividends to shareholders every year, at amounts greatly...

Valdis Dombrovskis Commission europeenne CCO

The European Commission begins work on non-financial reporting standards

Valdis Dombrovskis, vice-president of the European Commission, wants to create non-financial reporting standards for companies. He recently announced the launch of the Commission’s preparatory work on these standards. This project would complement Europe’s action plan on sustainable finance by...