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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Positive incentive loans: a new favorite for companies...and banks

Positive incentive loans are the new sustainable finance products on the rise. After the stalled growth in green bonds in 2018, positive incentive credits, with rate indexes based on environmental, social and governance (ESG) criteria, are experiencing triple-digit growth. This is not a bubble, but...

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Climate change could provoke a financial crisis similar to 2008

The current climate crisis could provoke a financial disaster. A group of researchers from the Institute for Public Policy Research (IPPR) in the United Kingdom estimate that the link between climate, social and economic risks have been greatly underestimated until recently. According to them, the...

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Natural disasters causing insures to lose profits

Almost all Insurance and reinsurance companies have seen their financial results impacted by the numerous natural disasters that occurred in 2018. The increase in economic losses related to climate events is beginning to worry insurers, but not so much in the short-term.

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Meeschaert management company launches a social footprint for investments

Meeschaert wants to understand the impact of its investments on employees. The management company has recently developed its own method for calculating the social footprint of its portfolio and is now using this information to engage with companies. Accidents at work, employee turnover, parity......

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Global call to massively mobilize capital for the climate

Elected officials, economists, scientists, and academics may all propose different plans, but they all have the same goal: ensure that not a single euro or dollar finances global warming, particularly through the development of fossil fuels. These calls must move global decision makers from inaction...

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Top rating agencies turn to ESG criteria for credit quality

Gone are the days when rating agencies were only interested in financial information. Climate, social and governance risks are beginning to influence issuers' credit ratings for better or worse. It remains to be seen how to integrate such extra-financial criteria into the credit quality equation.

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Norway’s sovereign wealth fund attacked over ethical investment strategy

Norway’s $1 trillion wealth fund has found itself under fire by conservative Norwegian critics. The new conservative coalition in power is particularly alarmed by the number of sectors excluded from the fund’s scope of intervention. The Ministry of Finance will set up a commission to review the...

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Unlisted green funds: many opportunities but very little impact

Nearly €60 billion has been invested in unlisted European green assets by 223 funds. This is the result of the new Novethic study on unlisted green asset funds, conducted in partnership with Ademe, revealing an asset class that interests investors more for its profitability than its positive...

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Disappearance of biodiversity: a systemic risk for the economy that remains underevaluated

The disappearance of natural capital is the second major risk factor the world faces in the next ten years, according to the Davos Forum Annual Global Risks Report. Yet at a time when biodiversity is at great risk, sustainable finance has its eyes set on climate change. To improve the situation, we...

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[Inside story] COP24 highlights limits to financial engagement on coal-related emissions

At COP24, which is taking place in Katowice, Poland until 14 December, 415 major global investors are calling on states to be more ambitious about reducing their greenhouse gas emissions. This is a puzzling message considering that many management company funds have increased the quantity of...

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Sustainable finance, a growing sector

An international mobilization for a sustainable finance has taken place in Paris this week. The major players in the sector took stock of their actions and made new green commitments. To this day, while sustainable finance is still a small business, a real movement seems to have begun to build a...

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A green CAC40 index, for what?

It is now possible to invest in the largest, most transparent French listed companies on environmental criteria, or so is Goldman Sach’s promise with their new "green" financial product. The bank is relying on data from the Carbon Disclosure Project (CDP) to choose the 40 most advanced French...

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"173 shades of reporting": will there soon be a European version of article 173?

On 25 October, Novethic published "173 Shades of Reporting: Edition 2", an in-depth analysis of the climate risk and integration of environmental, social and governance criteria (ESG) reporting conducted by the top 100 French institutional investors. The results from the first two editions show the...

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Decathlon uses environmental disclosure as a dialog tool with its stakeholders

How can companies better diffuse CSR (Corporate Social Responsibility) internally and throughout its ecosystem? This is the question all committed companies are asking. Novethic has identified good, achievable, and proven practices that have been put in place by major economic leaders. The following...

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Sustainable finance : three trends making finance more positive

Finance is not our enemy. On the contrary, it can even be used to develop a positive economy! This is the message that a changing sector wants to deliver. With a focus on three innovations created by startups discovered at the Change Now event, major financial institutions want to direct funding to...

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ESG integration : a question of financial profitability

The integration of ESG criteria in investment vehicles is becoming increasingly common for companies and investors worldwide, according to an East and Partners study commissioned by HSBC. For investors, ensuring the financial profitability of their portfolios is of the utmost importance.

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TCFD: Companies increasingly transparent on climate-related disclosures

Thus far, 513 organisations have expressed their support for the 2017 recommendations from the Task Force on Climate-related Financial Disclosures (TCFD). A positive start, the majority of these organisations already publish information on the subject. But there is still some work to do in order to...

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Sustainable finance : Too many obstacles between engagement and action

Toronto and Wall Street have announced plans to launch initiatives geared toward the sustainable finance movement... and may even become leaders. But the movement is joined by some of the largest oil sand producers in the world, and motivation behind leading such a movement is driven by short-term...

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European carbon market: with a rise in the price, the energy transition accelerates

A new Carbon Tracker study found that European Union (EU) carbon prices could average between €35-40 per tonne over the next five years. At this rate, the EU could save around 400 million tonnes in carbon emissions over the 2019-2023 period.

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Financial management debates on ESG fail to consider the social factor

In San Francisco, the Global Climate Action Summit and PRI in Person are taking place concurrently. On this occasion, responsible investors assert that a fair ecological transition will not be achieved by responding to climate and environmental issues alone: social dimensions must also be taken into...