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.

Dpef CCO

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...

Manifestation Exxon climat Angela Weiss AFP

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...

Plateforme BP ExxonMobilAustralia

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...

Taxonomy

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...

Finance durable CC0

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,...

Taxonomy

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.

HSBC HSBC

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...

Market Data march 2021

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...

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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...

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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...

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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...

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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...

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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...