SUSTAINABLE FINANCE

Sustainable Finance

Climate, oil and shareholder influence: the shell test

On 22 May, Shell’s General Assembly will be the centre of a standoff between shareholders who want to push the company towards a climate strategy compatible with the Paris Agreement and those who do not want to oppose the group’s leadership. The outcome of the vote for this climate resolution, which...

Climate change: a political and financial challenge for Europe

Good news : the climate is a priority for the European Union 2021-2027 budget framework, published on 2 May. Climate will represent a quarter of all programs, 5 % more than the previous period (€117 billion over 7 years). However, the framework does not detail any measures for eliminating fossil...

Donald Trump’s withdrawal from Iran nuclear deal boosts oil extraction

Already subject to supply and demand constraints, oil prices are heavily influenced by geopolitical tensions concerning the nuclear deal with Iran, which Donald Trump has threatened to leave. As a result, oil companies are seeing their profits soar as they pump their reserves to full capacity.

Green Funds remain marginal in Europe, while general interest continues to grow

The political push towards green finance in Europe has led to unprecedented momentum in 2017 in terms of green fund growth. Assets reached €32.2 billion, up 49% year-on-year, and two countries are taking the lead: France and Switzerland.

 

 

The central banks of France and England call for more regulation against climate change

According to the Banque de France Governor, François Villeroy de Galhau, it is time to penalise brown assets, which are harmful to the climate, rather than just favour the financial sector’s green initiatives. He has even offered carbon stress tests for banks. Bank of England Governor, Mark Carney,...

Danone issues a 300 million-euro pioneer social bond, a first for a multinational corporation

The agribusiness giant has issued a 300 million-euro positive social impact bond. This sum will be used to finance research on food, the emancipation of various populations or the improvement employee protection within the group. This is the first time that a private actor has carried out such an...

High-level conference: a glorious day for sustainable finance

A packed hall in the heart of Brussels' European Quarter and prestigious speakers, such as Emmanuel Macron, Michael Bloomberg, Jean-Claude Juncker. On March 22nd, the High-Level Conference on sustainable finance was organized by the European Commission to launch its sustainable finance action plan....

Oekom to join Institutional Shareholder Services (ISS) in unexpected acquistion

Oekom’s acquisition by Institutional Shareholder Services (ISS), the American proxy firm, has caused quite a shock in the small ESG (Environmental, Social and Governance) community. The German rating agency will now be able to manage increasingly fierce competition, but Europe will lose a rare...

Major French corporations link credit facilities to environmental and social performance

It's a small revolution that has been going on for a few months in the banking sector. A new tool is attempting to link credit facilities with environmental and social performance. Referred to as “impact credits”, these new tools already have a following in France. Danone has recently signed on,...

The EU announces a European eco-label for citizens who want to invest in Green Finance

In the European Commission's Action Plan for Financing Sustainable Growth, published on 8 March, a European eco-label project has been emphasised in an effort to skew the personal investments of European citizens towards more climate-friendly financial products.

Green bond issuance to reach 200 billion-dollar record in 2018

According to estimates by Standard & Poor’s, the global green bond market should reach $200 billion this year. This is a 30% increase compared to 2017 — lower than the previous five years. But what is worth noting is the greater diversification of borrowers, which includes more private investors and...

[INSIDE STORY] What will it take to drive the "business as usual" scenario out of business ?

As January 2018 comes to an end, it is marked by strong messages that all carry the same meaning: current business models are at risk and must change course in order to become sustainable.

Towards sustainable finance : key recommendations from the European High-Level Expert group report

After one year of work, the 20 members of the High-Level Expert Group on Sustainable Finance (HLEG), set up by the European Commission at the end of 2016, published their recommendations in a 100-page report. These recommendations are aimed at not only developing green finance but also making...

[INSIDE STORY] Could financial risks in oil and gas influence the way market indexes measure financial performance?

The Norwegian government must decide if its sovereign wealth fund will divest from the world’s major oil companies, a decision that could change the way stock market indexes measure financial performance. This announcement was a wakeup call for the finance world, which still measures its performance...

Laurence Tubiana: the One Planet Summit must fuse the Paris agreement with the real economy

“The One Planet Summit starts a new phase in the Paris Agreement”, insists Laurence Tubiana, president of the European Climate Foundation and French ambassador for climate negotiations during the COP 21 in 2015. This meeting is an occasion to fuse the agreement with the real economy, and integrate...

Financial hurdles strain COP23 climate negotiations in Bonn

Issues surrounding coal, and to a lesser extent small island states, were the focus of the COP 23 climate negotiations in Bonn (Germany). But hiding in the background, were concerns for the 100 billion dollars per year needed for climate change adaptation from now until 2020. Developed countries...

[Inside story] One Planet Summit: Global Call for Climate Action

With COP 23 in Bonn in full swing, under the Presidency of Fiji, which is currently threatened with submersion by rising sea levels, France hopes that people will turn their attention to Paris. To mark the anniversary of the Paris Agreement, France is organising a full-scale call to action to turn...

[Inside Story] Europe's sustainable finance wave

The European Commission's public hearing on the report prepared by the High-Level Expert Group on Sustainable Finance was an appeal to the financial industry about the urgent need to shift toward models that limit environmental and social harm and finance the transition toward low-carbon and...

Sustainable finance: A report sets out the missions of the European Commission's Expert Group

In an interim report published on 13 July 2017, the European Commission's High-Level Expert Group (HLEG) offers a vision of what sustainable finance might become. Final recommendations are expected to be issued by the end of the year, following consultations with banks, insurers, pension funds,...

Investors rally for the energy transition

Faced with the risks and opportunities associated with the energy transition, more and more investors are campaigning to demand a low-carbon economy. They call themselves ethical investors and they aim to influence both firms and regulators. They are part of a movement that received its initial...