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.

Five celebrities using their fame and fortune for a sustainable future

Robert Downey Jr., the actor known for his role as Iron Man, wants to launch the Footprint Coalition in 2020, a project aimed at using science to protect the environment. He is not alone in using his fame - and fortune – to serve the common good. Bono, Leonardo DiCaprio, Serena Williams, and Bill...

Shareholder Engagement Demonstrates Its Impact On Company Transformation In The Oil And Gas Sector

Investor coalitions are putting in place specific methodologies to question companies on their social responsibility. The Transition Pathway Initiative (TPI) and the Dutch NN Investment Partners explained the results they obtained from companies like Shell, BP and Tesla at Novethic’s 2019 Positive...

The great battle over the european classification system for sustainable activities has begun

Members of the European Commission’s technical expert group recently unveiled the fruit of a year’s worth of labor: a proposal for a regulation on the establishment of a classification system (i.e. taxonomy) to facilitate sustainable activities in Europe. As the backbone of the sustainable finance...

Three essential questions to navigating the jungle of sustainable finance labels

Sustainable finance labels provide valuable insights for investors seeking to manage their money more responsibly. However, there are significant disparities between many European sustainable finance labels, which makes it difficult to understand their true impact. To better understand this impact,...

ESG focus: Beyond Ratings moves to the London stock exchange!

On June 3rd, the London Stock Exchange announced the acquisition of Beyond Ratings, signifying the rise of sustainable finance in the London Stock Exchange. This French rating agency, created in 2014, specializes in the integration of ESG (environmental, social and governance) criteria into credit...

[Europe] The European union: a motor in the development of sustainable finance

European institutions deserve much credit for the recent momentum around sustainable finance. In less than three years, it has become a major focus of the Commission's financial markets policy. It is likely to transform the European economy, provided that differences of opinion between Member States...

The World Bank wants to reconcile mining and climate action

The World Bank has launched a $50 million fund to invest in mining sites in developing countries. Its goal is to support the energy transition by financing the extraction of the mines and metals needed for green energy. The plan to introduce responsible practices to a sector known for its many...

Shareholders rebel against top companies ahead of annual meeting season

Bayer, Barclays, UBS...annual meeting season is already in a state of turmoil, with shareholders voting against corporate leadership and asking them to be more responsible. Shareholder activism is strengthening to hold companies more responsible, particularly on the climate issue. Businesses are...

Impact investing: a holy grail for the finance sector

The search for impact investing has spread across the entire finance sector. From specialized management companies to the largest of banks, financial institutions want to be a part of this rapidly growing market, estimated at $502 billion by Global Impact Investing Network (GIIN). However, there is...

Gender equality: the next challenge in sustainable finance

Thematic funds on gender equality are starting to emerge within companies. And it's not an easy task! Women continue to experience difficulties in attaining corporate leadership roles. The management company Mirova has just created a fund that goes against current statistics, by investing in...

Greening the financial system : a new mission for central banks

The fight against climate change can work wonders. It is not only able to transform central bankers into environmental apostles, but also reduces circumspect regulation to concrete considerations of climate-related financial risks. This was demonstrated by the Paris meeting of the Network for the...

Responsible investment could mean a crash test for the mass market

Responsible investing is growing at a rapid pace and is beginning to intertwine with the rest of the finance sector. The challenge is far from being won. Disparity in terminology makes it particularly difficult for investors and salespeople to market it. And lack of standardization concerning impact...

The SEC allows ExxonMobil to axe climate change resolution at general meeting

The basis of the Security and Exchange Commission’s (SEC) recent decision goes against historical trends. While shareholders once again tried to put climate on the agenda of ExxonMobil's General Meeting, the stock exchange watchdog authorised the oil giant to dismiss the resolution, on the premise...

[Inside story] Calls for boycott: George Clooney against the Sultan of Brunei, while Arab States stand against brazilian agrobusiness!

Boycotting is a double-faced geopolitical weapon used by stars like George Clooney to defend human rights but also by Arab states against the Brazilian agribusiness that sells them halal meat!

For investors, the artificial intelligence race has a long road ahead

Startups incorporating artificial intelligence technology are not as numerous as we think. A study conducted by MMC Ventures identified nearly 1,600 such startups in Europe. That’s 40% less than the number of companies claiming to be a part of this sector. Investors are ready to put more money into...

ESG reporting obligations for investors adopted by European parliament

The European Parliament and Council have agreed that EU financial professionals should be required to provide information on the incorporation of Environmental, Social and Governance (ESG) criteria into financial management. The aim is to use this provision as leverage to reorient financial flows in...

The day the Norwegian sovereign wealth weakened the oil sector’s financial stronghold

8 March 2019 may be remembered the day in which the largest shareholder in the world, Norway’s Sovereign Wealth Fund, announced that it is divesting from “oil exploration and production companies" due to financial reasons!

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...

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...

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.