CEO Talk: Opportunities for Green Bank Transformation
On April 27, the Alliance for Green Commercial Banks (the Alliance), co-organized by International Finance Corporation (IFC) and Hong Kong Monetary Authority (HKMA) is hosting the first roundtable session of the Alliance.
The esteemed panel, featuring chief executives from commercial banks and thought leaders in green bank transformation, will discuss the green strategies and the transformation roadmap of commercial banks, as well as opportunities in green investments and risk management across Asia.
For registration and event details, visit https://zoom.us/webinar/register/WN_9viu6844SpW6B6j2qzZhgg
Finance for Biodiversity Pledge Publishes An Overview of the Main Biodiversity-Related Initiatives for Financial Institutions
In April, the Finance for Biodiversity Pledge, together with UNEP FI, the Principles for Responsible Investment (PRI) and the Finance@Biodiversity Community, published an overview of the main biodiversity-related initiatives developed for financial institutions, showing the topics that each initiative addresses, the activities and deliveries planned for 2021-2022, reports published, and contact information. It also issued a Guide on Biodiversity Measurement for Financial Institutions, which provides a starting point for financial institutions that are interested in measuring biodiversity.
The Finance for Biodiversity Pledge is a collective commitment by the finance sector itself. The pledge was established by a group of European financial institutions which have been working actively as members of the Finance and Biodiversity Community (F@B Community). Learn more about the Finance for Biodiversity Pledge signatories.
International Monetary Fund publishes"Building Back Better: How Big Are Green Spending Multipliers?"
In March, the International Monetary Fund published the working paper Building Back Better: How Big Are Green Spending Multipliers? This paper estimates multipliers for spending in clean energy and biodiversity conservation to help inform stimulus measures for a post-COVID-19 sustainable recovery. The estimated multipliers associated with green spending are about 2 to 7 times larger than those associated with non-eco-friendly expenditure, depending on sectors, technologies and horizons. These findings suggest that ‘building back better’ could be a win-win for economies and the planet.
NGFS presents an overview of sustainable finance market dynamics along with a dashboard on scaling up green finance and publishes its Annual Report
The NGFS released a report entitled “Sustainable Finance Market Dynamics: an overview”. It presents an overview of the market dynamics for mobilizing sustainable finance and identifies three main channels through which financial markets can help steer the necessary transformation of the real economy towards higher levels of sustainability: disclosure, risk management, and the mobilization of capital. Hence, the report provides key takeaways on the need for improvement for further consideration by policymakers and market participants.
The NGFS also released a “Dashboard on scaling up green finance”. It is a first attempt to catalogue desirable series that allow the evolution, change and trend of a phenomenon (rather than its absolute level to be analysed). It contains a set of 21 indicators tracking the greening of national financial systems. While presented at an aggregate level, the dashboard is intended for use at the jurisdictional level. To this end, metadata describe the country coverage and provide sources where these data can be found.
World Bank Group President’s Statement on Climate Change Action Plan
The World Bank Group (WBG) President David Malpass issued an official statement on the WBG’s new Climate Change Action Plan, committing that 35% of World Bank Group financing will have climate co-benefits, on average, over the next five years and 50% of World Bank (IBRD and IDA) climate financing will support adaptation and resilience. For IFC and MIGA, 85% of new operations will be aligned by July 1, 2023 and 100% of these by July 1, 2025. Read more.
International Capital Markets Association (ICMA) Sustainable Bonds Database and Online Media Library
The International Capital Markets Association (ICMA) launched the Sustainable Bonds Database for public sustainable bonds, including records of green, social, and sustainability bonds issued since 2016 and sustainability-linked bonds, and an online Media Library with free webinars and podcasts on sustainable finance.
International Association of Credit Portfolio Managers's webinar on EU environmental and climate risk management recommendations
In March 2021, the International Association of Credit Portfolio Managers hosted a webinar on "ESG and Climate Risks – Regulatory Roadmap and Challenges". Representatives from European Banking Authority presentation and European Central Bank presentation shared their experiences and recommendations on environmental and climate risk management. Download presentations here.
IMF, World Bank pledge to support G20 push against global climate risks
The leaders of the International Monetary Fund and the World Bank on Friday vowed to step up efforts to combat climate change by looking more closely at climate-related financial stability risk and using other tools at their disposal. The World Bank is the biggest provider of climate finance to the developing world. Read more.
South Africa Financial Sector Conduct Authority (FSCA) Published the Report “Sustainable Finance Practices in South African Retirement Funds”
In 2020, South Africa's Financial Sector Conduct Authority (FSCA) and IFC collaborated to survey how well the country’s retirement industry is positioned. The results signal a pivotal moment for South Africa’s retirement funds to take a leading role on sustainable finance in the nation. Download report here.
IFC published Fiscal Year 2020 Social Bond Impact Reprt
From July 1, 2019 to June 30, 2020 (fiscal year 2020, or FY20), IFC issued 11 social bonds totaling $1.6 billion through four currencies – a record volume since the program's inception in 2017. This brings IFC's cumulative social bond issuance to $3.1 billion across 39 bonds in 10 currencies. Download report here.
The Asian Development Bank Institute (ABDI) offers free online course on "Governing Sustainable Finance"
The Asian Development Bank Institute (ABDI) is offering a new free, certificate e-learning course on "Governing Sustainable Finance". Register and enroll on the courses here.
IFC launches online tool: GMAP, the Global Map of Environmental and Social Risk in Agro-Community Production
Developed by IFC, GMAP provides an early overview of environmental and social risks at country and commodity level associated with agro-commodity primary production. Register and access the online tool here.
TCFD offers free climate disclosure e-learning courses
The Task Force on Climate-related Financial Disclosures (TCFD) and the Climate Disclosure Standard Board jointly offer a series of free self-pacing climate disclosure e-learning courses to accelerate implementation of TCFD recommendations. Register and enroll on the courses here.
The Bank for International Settlements (BIS) launched a euro-denominated, open-ended fund for green bond investments by central banks and official institutions
The Bank for International Settlements (BIS) has launched a euro-denominated, open-ended fund for green bond investments by central banks and official institutions, which follows the successful introduction of a first BIS green bond fund denominated in US dollars in September 2019. These two funds invest in high-quality bonds that comply with international green standards and finance environmentally friendly projects. Read more.
Environmental Finance and IFC's Green Bond Technical Assistant Program launched the "Creating Green Bond Markets" website
The online news and analysis service Environmental Finance and IFC's Green Bond Technical Assistant Program have teamed up to launch a website dedicated to "Creating Green Bond Markets" with information on forthcoming webinars, case studies, training programs, and research reports. Access here.
IFC published the “Ctrl + Alt + Del: A Green Reboot for Emerging Markets” Report
In January 2021, IFC published the report “Ctrl + Alt + Del: A Green Reboot for Emerging Markets”, which focuses on the 10 key green investment sectors in 21 emerging markets, including 19 SBN member countries. The report finds that focusing on green investments in selected sectors in these markets in the next ten years can generate USD $10.2 trillion in investment opportunities, 213 million cumulative jobs, and 4 billion tons of carbon dioxide equivalent in emission reductions. Downloan here.
The Climate Transition Finance and the IMCA published the “Climate Transition Finance Handbook – Guidance for Issuers”
The Climate Transition Finance and the International Capital Market Association (IMCA) published the “Climate Transition Finance Handbook – Guidance for Issuers”, which clarifies the information that should be made publicly available to investors in connection with the issuance of use-of-proceeds bonds that are aligned with the Green and Social Bond Principles or Sustainability Bond Guidelines, as well as general corporate purpose bonds issued in line with the Sustainability-Linked Bond Principles. Download here.
The World Bank and the Principles for Responsible Investment Developed a Sustainable Finance and Investment Policy Toolkit
In December 2020, the Principles for Resonsible Investment (PRI) and the World Bank’s Financial Stability and Integrity Team jointly published A Toolkit for Sustainable Investment Policy and Regulation (Part 1), which aim to support policy makers and regulators in implementing reforms to build a sustainable financial system. This toolkit provides a high-level overview of five foundational sustainable investment policies, with key features and examples of such policies in action. Download here.
Network for Greening the Financial System Publishes Two Reports on Central Banks’ Portfolio Management and Monetary Policy Operations & Climate Change
In December 2020, the Network for Greening the Financial System (NGFS) recently published two reports.
The “Progress report on the implementation of sustainable and responsible investment practices in central banks’ portfolio management” finds that more central banks have either taken or made plans to take steps to integrate Sustainable and Responsible Investment (SRI) practices in one or more of their portfolios. Download here.
The “Survey on monetary policy operations and climate change: key lessons for further analyses” confirms even though country central banks have taken only limited actions to address climate-related risks, their awareness of the urgency and potency of such risks is increasing. Download here.
Climate Bonds Data Intelligence Reports: $1Trillion Mark Reached in Global Cumulative Green Issuance
The green finance market has reached its most substantial milestone yet, with USD 1.002 trillion in cumulative issuance since market inception in 2007, according to the Climate Bonds Green Bond Database. An encouraging characteristic of the green finance market has been the remarkable growth of green debt instruments. Global annual issuance has increased each year since 2007 to the record of USD266.1bn (adjusted from USD255bn) in 2019. Read more.
Scaling Sustainable Finance Through Integrated Corporate Finance
An analysis aurguing for a new approach to look at sustainable finance from a corporate perspective, which focuses on the opportunity for companies to finance their sustainability investments as part of an integrated corporate strategy, under the oversight of existing corporate governance structures and leveraging companies’ main medium of investor communication. Read More.
The International Capital Market Assocation published the Climate Transition Finance Handbook: Guidance for Issuers
In December 2020, the International Capital Market Association (ICMA) published the Climate Transition Finance Handbook – Guidance for Issuers, which clarifies the information that should be made publicly available to investors in connection with the issuance of ‘use of proceeds’ bonds aligned with the Green and Social Bond Principles or Sustainability Bond Guidelines, or general corporate purpose bonds issued in line with the Sustainability-Linked Bond Principles. Download here.
World Bank Group Announces Ambitious 35% Finance Target to Support Countries’ Climate Action
December 9, 2020 — The World Bank Group today announced an ambitious target for 35% of its financing to have climate co-benefits, on average, over the next five years. It replaces an earlier target of reaching 28% by 2020, which was in place over the last 5 years. The World Bank – IBRD and IDA – will also seek to ensure that 50% of this financing supports adaptation and resilience. These are two of several announcements about the Bank Group’s commitment to helping developing countries address climate change and adapt to its mounting impacts. Read more.
TCFD Playbook published as a resource toward fully aligned and comprehensive TCFD reporting
In September 2020, the Institute of International Finance (IIF) and the United Nations Environment Programme Finance Initiative (UNEP FI), with the support of EY, jointly developed a TCFD Playbook to serve as a resource for firms at different stages on their journey toward fully aligned and comprehensive TCFD reporting. Read more.
Sustainable Finance Practices in South African Retirement Funds
From January to August 2020, South Africa's Financial Sector Conduct Authority (FSCA) and IFC collaborated to survey how well the country’s retirement industry is positioned to unlock significant investment opportunities in the new global trend towards green and climate finance, which represents around $588 billion in investment needs in South Africa alone up to 2030, according to IFC research.
The survey, Sustainable Finance Practices in South African Retirement Funds, also reports on progress by the nation's retirement funds in adopting responsible investing practices in line with Regulation 28 of the Pension Funds Act, 1956 (PFA), and Guidance Notice 1 of 2019.
Despite the challenges of COVID-19, 140 funds responded to the survey, representing roughly 74 percent of the total assets under management, and 28 percent of the total retirement funds in the country's retirement industry. The results signal a pivotal moment for South Africa’s retirement funds to take a leading role on sustainable finance in the nation. The report is an initiative of IFC’s Green Bond Market Development Program, in partnership with the Swiss State Secretariat for Economic Affairs (SECO) and Swedish International Development Cooperation Agency (Sida).
Click here to download the Report.
Green & Social Bond Principles launch new guidelines on climate transition finance
December 9, 2020 — Major economies are now striving to meet the objectives enshrined in the Paris Agreement, limiting the global temperature increase this century to lower than 2°C above pre-industrial levels by cutting greenhouse gas emissions. Capital markets play a critical role in this climate transition process by ensuring the efficient flow of financing from investors to issuers who want to change their businesses to address climate change risks.
To support the growth of climate transition finance, the market community behind the Green Bond Principles, Social Bond Principles, Sustainability Bond Guidelines and Sustainability-Linked Bond Principles has launched clear guidelines on the disclosures that should be made by issuers on their climate change strategy when raising funds in debt capital markets.
The new Climate Transition Finance Handbook clarifies the information that should be made publicly available to investors in connection with the issuance of ‘use of proceeds’ bonds aligned with the Green and Social Bond Principles or Sustainability Bond Guidelines, or general corporate purpose bonds issued in line with the Sustainability-Linked Bond Principles.
Banco Central do Brasil (BCB) Adds Sustainability Dimension to Its Agenda in September 2020
The new sustainable agenda to be carried out by Banco Central do Brasil (BCB) aims at promoting the allocation of resources towards the development of a more sustainable, dynamic and modern economy, in order to foster a sustainable and inclusive growth in Brazil.
In fact, BCB, as regulator of the National Financial System (SFN), has been implementing a series of measures focusing at promoting the socio-environmental (S&E) sustainability over the past few years — in line with the global sustainability agenda and other central banks’ initiatives and best practices (NGFS). Going forward, the Agenda BC# — the BCB’s institutional work agenda — embraces the importance of S&E sustainability for Brazilian economy and SFN, incorporating the new ‘Sustainability Dimension’ as its fifth pillar. Read more about the Agenda.
As part of its Sustainability Agenda, the Banco Central do Brasil and the German Federal Ministry for Economic Cooperation and Development (BMZ) through the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH organized a webinar on Regulatory Initiatives Based on the Sustainability Dimension on 24-26 November 2020. The event covered conceptual aspects of social, environmental and climate risks; channels of transmission of such risks in the financial system; their relevance in an integrated risk management, including their role in the Risk Appetite Statement (RAS); their inclusion in stress testing, capital adequacy assessment and liquidity levels.
Click here to view the recording: Regulatory Initiatives Based on the Sustainability Dimension of AgendaBC# (24/11)
Click here to view the recording: Regulatory Initiatives Based on the Sustainability Dimension of AgendaBC# (25/11)
Click here to view the recording: Regulatory Initiatives Based on the Sustainability Dimension of AgendaBC# (26/11)
An inspirational IFC webinar on "Inclusive Leadership and Resilient Organizations: Navigating through Crisis and Recovering Stronger"
IFC invites you to join us for the free presentation in IFC’s Sustainability Webinar Series: Inclusive Leadership and Resilient Organizations: Navigating through Crisis and Recovering Stronger on December 1, 2020 (8:00m-9:30 am Eastern Time).
The world of work is undergoing profound change, a change accelerated by the COVID-19 pandemic. Digital technologies, the future of work, the gig economy, promising business opportunities, hidden pitfalls—there’s a new normal emerging. It is requiring adaptability, creativity and decisiveness amidst extensive uncertainty. Today, now more than ever, organizations need to be resilient – to be able to pivot quickly in the face of major disruptions. Building stable and sustainable business cultures is critical. This speaks to having in place a truly diverse and inclusive leadership team, with complementary skill sets, perspectives and expertise.
IFC’s Women on Boards and in Business Leadership (WBBL) program invites you to a free 90-minute webinar with Alexandre Di Miceli, author of The Resilient Company: Thriving in a World of Uncertainties, and Brenda Bowman, the lead course designer and facilitator of the WBBL training program. Di Miceli and Bowman will discuss how companies can grow despite seen and unforeseen risks. They will explore ways to succeed in a world of uncertainty, with diverse and inclusive leadership teams at the helm - underpinned by authentic purpose, stakeholder engagement, and continuous learning.
Note: A confirmation with webinar link and information will be sent to registrants. This webinar will be recorded and available online on the IFC Sustainability website (www.ifc.org/sustainabilitywebinars) after the event. Space is limited! Please register by November 27, 2020.
Read more about IFC’s Women on Boards and in Business Leadership (WBBL) program.
World Bank Releases Guide for Sovereign Issuers to Engage with Investors on Environmental, Social and Governance (ESG) Issues
November 9, 2020 — The World Bank today published a guide to help public debt managers improve their engagement with investors on ESG topics. Titled “Engaging with Investors on Environmental, Social and Governance (ESG) Issues - A World Bank Guide for Sovereign Debt Managers,” it helps bridge the communication gap on ESG issues between sovereign issuers and investors. The guide outlines how sovereign debt investors use ESG information in their investment strategies, how debt managers are engaging with them, and how engagement can be improved. Read more.
Debt Capital Markets: Helping Lenders Scale Climate Finance in Emerging Markets
November, 2020 — There is an enormous business opportunity for climate finance in emerging markets. Over the next decade, it is estimated that there are at least US$23 trillion in climate-smart investment opportunities, including green buildings, renewables, transportation, energy efficiency, waste management, and agriculture. And this doesn’t even include the growing need for adaptation finance. Global capital markets — and debt capital markets in particular — are critical to enabling this transition. Read more.
Indonesia’s 2020-2024 National Medium-Term Development Plan has incorporated climate change into the mainstream of Indonesia's broader Low Carbon Development (LCDI) strategy.
October 17, 2020 — The Indonesia Government has issued Sovereign Global Green Sukuk, totaling US$2.75 billion, the proceeds from which are allocated to finance sustainable transportation, flood mitigation in highly vulnerable areas, access to energy from renewable sources, waste management, and energy efficiency projects. Moreover, the government issued the world's first Green Sukuk Retail in 2019, with a total investment of some US$100 million. Read more.
EBRD Published Report on the Task Force on Climate-Related Financial Disclosures (TCFD)
October 14, 2020 — The European Bank of Reconstruction and Development (EBRD) published its first stand-alone report on the Task Force on Climate-Related Financial Disclosures (TCFD). This EBRD TCFD 2019 Report outlines its plans to comply with TCFD recommendations and its support to clients to implement TCFD recommendations. The EBRD report follows the TCFD recommendations on disclosure in four key areas: governance, strategy, risk management, and metrics and targets. Read more.
OECD Report: Developing Sustainable Finance Definitions and Taxonomies
October 6, 2020 — The Organisation for Economic Co-operation and Development (OECD) recently published the report: "Developing Sustainable Finance Definitions and Taxonomies". This report examines the sustainable finance definitions and taxonomies in five jurisdictions: the European Union, China, France, Japan, and the Netherlands. It then lays out the preliminary considerations for good taxonomy designs based on the similarities and differences among these systems. Read more.
World Bank Report: Mobilizing Private Finance for Nature
In September — The World Bank published a new paper on private finance for biodiversity and ecosystem services. This report details two channels through which private finance can be mobilized: by monetizing cashflows from the provision of ecosystem services (financing green) and by driving better management of biodiversity risks (greening finance). Read more.
Climate Bonds Initiative and FSD Africa launch Africa Green Bonds Toolkit: a practical guide for African markets
September 30, 2020 - FSD Africa, in partnership with the Climate Bonds Initiative has recently launched the Africa Green Bond Toolkit, a practical guide to issuing green bonds for the region. The Toolkit will provide African countries and capital markets with guidance on how to issue green bonds that are in line with international best practices and standards. Read more.
Big Four firms release ESG reporting metrics with World Economic Forum
September 23, 2020 - The metrics were released Tuesday by the World Economic Forum in conjunction with the fourth annual Sustainable Development Impact Summit, which coincided with Climate Week in New York. They come a week after five ESG standard-setters — the Carbon Disclosure Project, the Climate Disclosure Standards Board, the Global Reporting Initiative, the International Integrated Reporting Council and the Sustainability Accounting Standards Board — agreed to work together more closely on aligning their various sets of standards and frameworks after being urged to do so by international securities regulators. Read more.
Measuring Stakeholder Capitalism: Towards Common Metrics and Consistent Reporting of Sustainable Value Creation
September 22, 2020 - At the 2020 Annual Meeting in Davos, 120 of the world’s largest companies supported efforts to develop a core set of common metrics and disclosures on non-financial factors for their investors and other stakeholders. This report presents the conclusions of our six-month open consultation process to define common metrics for sustainable value creation. Read more.
MSCI Launches Tool to Help Investors Assess Alignment to UN Sustainable Development Goals
September 16, 2020 - The MSCI SDG Alignment Tool is designed to provide investors with a complete view of a company’s net contribution – both positive and negative – towards addressing each of the 17 UN SDGs. The launch follows MSCI's collaboration in 2018 with the Organization for Economic Co-operation and Development (OECD) on a joint discussion paper, "Institutional Investing for the SDGs," which was intended to spark discussion among stakeholders and market participants. Read more.
Climate Risk and Financial Systems of Latin America: Regulatory, Supervisory and Industry Practices in the Region and Beyond
The Inter-American Development Bank (IDB) launched a research program on the relationship between climate change and financial markets in the LAC region, beginning a dialogue with several regulators, central banks and supervisors, alongside an analytical effort that is presented here, in two parts: A Map of Financial Regulations and Industry Practices in Latin America; and an Analysis of International Practices in Using Supervisory and Regulatory Instruments, considering their replication potential in LAC. Read more.
Colombia Central Bank issued “Climate change: policies to manage its macroeconomic and financial effects”
It is increasingly recognized that climate change generates major macroeconomic and financial risks. After a brief analysis of the macroeconomic, fiscal and tax policies to manage these risks, this paper concentrates on: (i) how financial policies can help improve transparency and climate-related risk disclosure in financial institutions’ balance sheets and assets prices, particularly with appropriate prudential regulation and supervision; and (ii) how those risks could be taken into account in monetary policy and central banks’ balance sheets and operations. The paper ends with some reflections on the Covid-19 pandemic and the will for a “green” recovery. Read more.
NGFS promotes environmental risk analysis in financial industry
September 10, 2020 - There is a growing consensus among members of the Central Banks and Supervisors’ Network for Greening the Financial System (NGFS) that climate-related and environmental risks could result in significant risks for financial institutions, and will have serious implications for financial stability. In order to effectively address climate-related and environmental risks, greater collective efforts are urgently needed from regulators, financial institutions, international organizations, third-party vendors, and academic institutions to promote the wider adoption of Environmental Risks Analysis (ERA) in the financial industry. This is the overarching conclusion of the two NGFS publications released today:
The Overview of Environmental Risk Analysis by Financial Institutions provides wide-ranging examples of how environmental risks translate into financial risks, and an in-depth review of the tools and methodologies for ERA used by financial institutions including banks, asset managers and insurance companies.
The Overview is a non-technical review of ERA tools and methodologies based on the NGFS Occasional Paper “Case Studies of Environmental Risk Analysis Methodologies”.
Digital finance, a lifeline during COVID-19 crisis, can deliver long-term financing of the Sustainable Development Goals
August 26, 2020 - Today a new report, “People’s Money: Harnessing Digitalization to Finance a Sustainable Future”, by the UN Secretary-General’s Task Force on Digital Finance sets out an ambitious, practical Action Agenda. Centrally, it spells out how digital finance can be harnessed in ways that empower citizens as tax-payers and investors in envisaging a digital transformation at scale that better aligns people’s money with their needs, collectively expressed by the Sustainable Development Goals (SDGs). Read more.
PCAF: Public Consultation on the draft Global Carbon Accounting Standard for the financial industry
PCAF publishes draft Global Carbon Accounting Standard for the Financial Sector. Led and developed by the financial industry, the Standard offers asset class methods to measure and disclose the GHG emissions financed by loans and investments. PCAF will host eight webinars tailored to three different stakeholder categories across Europe, Africa, Asia-Pacific, North America, and Latin America. Read more.
How to Develop a National Green Taxonomy for Emerging Markets - A New World Bank Guide
July 13, 2020 - The World Bank today published a guide outlining the processes that financial regulators can use to develop a green taxonomy. The publication Developing a National Green Taxonomy: A World Bank Guide will help regulators in emerging economies who seek to “green” their countries’ financial systems. Read more.
GFLP promotes the SBN Webinar of Rebuilding Resilience through Sustainable Finance
June 22, 2020 - The Green Finance Leadership Program (GFLP) promotes the Webinar through its website.This free webinar presents exclusive country insights from the SBN report Necessary Ambition: How Low-Income Countries Are Adopting Sustainable Finance to Address Poverty, Climate Change, and Other Urgent Challenges, launched in June. The report is the first comprehensive review of drivers and innovation behind market-level efforts to promote sustainable finance in low-income countries. It includes 16 case studies, 8 country reports, and practical decision-making tools based on countries' various experiences. Read more.
ICMA Sustainability-Linked Bond Principles (SLBP)
June, 2020 - The Sustainability-Linked Bond Principles provide guidelines that recommend structuring features, disclosure and reporting. They are intended for use by market participants and are designed to drive the provision of information needed to increase capital allocation to such financial products. The SLBP are applicable to all types of issuers and any type of financial capital market instruments. Read more
ICMA Social Bond Principles (SBP)
June, 2020 - Social Bonds are use of proceeds bonds that raise funds for new and existing projects with positive social outcomes. The Social Bond Principles (SBP) updated as of June 2020 promote integrity in the Social Bond market through guidelines that recommend transparency, disclosure and reporting. They are intended for use by market participants and are designed to drive the provision of information needed to increase capital allocation to social projects. Read more
ESAs announce public hearing on ESG disclosures
June 9, 2020 - The three European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) will organise a public hearing on proposed environmental, social and governance (ESG) disclosure standards for financial market participants, advisers and products. The aim of the public hearing is to explain and discuss the content of the consultation paper published on 23 April, on the draft RTS under the Regulation on sustainability‐related disclosures in the financial services sector. Read more
UNEP FI Webinars for ASEAN - Registration Open
8 June 14:00-15:30 Bangkok Time | TCFD and Climate Risk Assessments
UNEP FI is excited to offer a webinar for participants in Asia to discuss TCFD and climate risk assessment. The session will explore the TCFD framework, the latest from UNEP FI's insurance and banking TCFD pilots, and regulatory developments around climate risk. Register from here.
11 June 11:30-13:00 Bangkok Time | Ensuring a Sustainable Recovery in ASEAN –What Role for the Finance Sector?
As part of the main session of the UN Virtual Forum on Responsible Business and Human Rights, UNEP FI is co-organising a session on the role of the finance sector in the sustainable and inclusive recovery from the COVID-19. The session will discuss how the finance sector can support a green economic recovery that is financially inclusive (especially helping SMEs). It will also look at the financial institution’s own back-to-work strategies such as remote working and business travel as an opportunity to aligned them to the Paris climate agreement. Registration and full forum agenda is available from here.
12 June 14 :00-15 :30 Bangkok Time | Virtual workshop on banking and human rights for ASEAN banks (closed event)
UNEP FI is organising a virtual introductory workshop on banking and human rights issues for ASEAN banks. It will include an overview of human rights issues related to businesses in ASEAN and how this relates to banks under both hard and soft laws; how banks in the region are tackling human rights; and a live exercise to develop an ASEAN human rights risk heatmap with the help of experts. The workshop is side event of the UN Virtual Forum on Responsible Business and Human Rights, 11-12 June. Register here and wait for UNEP FI to approve as it is a closed event.
NGFS Publishes Climate Risk Best Practices of Supervisors and Financial Institutions
May 27, 2020 - The NGFS (Network of Central Banks and Supervisors for Greening the Financial System) has published a Guide for Supervisors Integrating climate-related and environmental risks into prudential supervision. Alongside the guide, the NGFS has published A Status Report on Financial Institutions’ Experiences from working with green,non green and brown financial assets and a potential risk differential. Read more
ECB launches public consultation on its guide on climate-related and environmental risks
May 20, 2020 - The European Central Bank (ECB) today published a guide for consultation that explains how it expects banks to safely and prudently manage climate-related and environmental risks and disclose such risks transparently under the current prudential framework. The ECB wants banks to account for these risks given that they drive existing prudential risk categories and can substantially impact the real economy and banks. The consultation on the guide starts today and ends at midnight CET on 25 September 2020. The guide itself and a list of frequently asked questions (FAQs) are available on the ECB’s Banking Supervision website. Following the end of the public consultation, the ECB will publish the comments received together with a feedback statement. Read more
Mexico’s central bank, UNEP and UNDP call on financial sector to plan for environmental risks
May 19, 2020 - Banco de México and the United Nations Environment Programme (UNEP), with the support of the United Nations Development Programme (UNDP), presented the report "Climate and environmental risks and opportunities in Mexico's financial system: From diagnosis to action," which calls upon Mexican financial institutions to make a collective effort to incorporate environmental issues into their risk assessment and corporate governance strategies, as well as to take advantage of the opportunities that would result from the transition to a low-carbon economy.
The report highlights that climate change and environmental degradation are critical challenges of our time, as they lead to loss of natural capital, ecosystem degradation, lower productivity, and a reduction of the population’s well-being, at both the national and global level. Read more
World Bank Group: 100 Countries Get Support in Response to COVID-19 (Coronavirus)
May 19, 2020 - The World Bank Group today announced its emergency operations to fight COVID-19 (coronavirus) have reached 100 developing countries – home to 70% of the world’s population. Since March, the Bank Group has rapidly delivered record levels of support in order to help countries protect the poor and vulnerable, reinforce health systems, maintain the private sector, and bolster economic recovery. This assistance, the largest and fastest crisis response in the Bank Group’s history, marks a milestone in implementing the Bank Group’s pledge to make available $160 billion in grants and financial support over a 15-month period to help developing countries respond to the health, social and economic impacts of COVID-19 and the economic shutdown in advanced countries. Read more
Interim Advice for IFC Clients on Safe Stakeholder Engagement in the Context of COVID-19
May 15, 2020 - The main objective of this Interim Advice is to assist IFC clients in identifying alternative approaches and mechanisms for engaging stakeholders, for continuing to deliver project-related information to the communities within their areas of operations and for receiving feedback, while taking all feasible steps to protect the health and safety of those involved. Read more
Implications of the COVID-19 Pandemic for Global Sustainable Finance
May, 2020 - In the context of the COVID-19 pandemic, this paper was developed to support thinking on how to respond to the pandemic from a sustainable finance perspective. This paper is not intended to be comprehensive across the wide range of sustainability-related implications of the pandemic and is focused on developments within the financial system. For instance, it does not attempt to forecast how macroeconomic trends may impact the trajectory of the low-carbon transition. Rather, this paper is a preparatory effort to inspire thinking by different communities of actors on response strategies over the coming months and help identify where collaboration will be required. Read more
Downturn signals opportunity for climate-aligned investing
April 27, 2020 - With global stock markets having plunged into bear market territory, the conventional wisdom is that the coronavirus storm sinks all boats. Or does it? While it’s true that equity funds experienced severe losses pretty much across the board, some fared better than others. According to research by Morningstar, sustainable equity funds did better than their conventional counterparts. In the first quarter of 2020, the returns from more than 200 open-end and exchange-traded funds (ETFs) in the United States with a sustainability theme were over-represented in the top quartile and top halves of their broader category, such as for indexes comprised of large cap value or small cap growth stocks. Read more
Big data tracking Covid-19’s effect on ESG
April, 2020 - Big data tracking Covid-19’s effect on ESG launched by Truvalue Labs creates statistics on how company actions are being reported in news, social media sites and financial reports. Read more
UNEP: Nudging the Financial System: A Network Analysis
April, 2020 - This paper is a first attempt to improve the understanding of the sustainable finance ecosystem, its partnerships, actors and emerging network characteristics related to the implementation of the 2030 Agenda for Sustainable Development and its 17 Sustainable Development Goals (SDGs). Network analyses of these diverse arrays of sustainable finance partnerships are deemed relevant for the alignment and cascading of sustainable finance into the wider financial system. Read the full report here.
ILO Launches Web Page Covering COVID-19 Country Policy Responses
April 27, 2020 - International Labour Organization (ILO) opened a web page within its website covering COVID-19 country policy responses. The page includes all the decisive measures implemented by a number of countries and their social partners to combat the spread of the disease, while ameliorating its pernicious effect on the economy and labour market during the initial phase of the COVID-19 outbreak. A search button is available on the page for a country or territory to find out the measures implemented by governments, employers’ and workers’ organizations, and the ILO. Read more
ASEAN Green Finance State of the Market 2019
April 14, 2020 - ASEAN Green Finance State of the Market 2019 report is an analysis of the issuance of green bonds and green loans in Southeast Asia. Following Climate Bonds Initiative’s (CBI) first ASEAN Green Finance State of the Market 2018, this 2019 report reviews the progress made across the regional green finance landscape and emerging opportunities for more green bonds, loans and sukuk amongst ASEAN nations. Read more
IOSCO steps up its efforts to address issues around sustainability and climate change
April 14, 2020 - The Board of the International Organization of Securities Commissions today published its report on Sustainable Finance and the Role of Securities Regulators and IOSCO, which seeks to help market participants address issues related to sustainability and climate change. Read more
World Bank Group Launches First Operations for COVID-19 (Coronavirus) Emergency Health Support, Strengthening Developing Country Responses
April 2, 2020 - The World Bank’s Board of Executive Directors today approved a first set of emergency support operations for developing countries around the world, using a dedicated, fast-track facility for COVID-19 (coronavirus) response. The first group of projects, amounting to $1.9 billion, will assist 25 countries, and new operations are moving forward in over 40 countries using the fast-track process. In addition, the World Bank is working worldwide to redeploy resources in existing World Bank financed projects worth up to $1.7 billion, including through restructuring, use of emergency components of existing projects (CERCs) and triggering of CAT DDOs and spanning every region. Read more
Social Bonds - Illustrative use-of-proceeds case studies: Coronavirus
March, 2020 - Produced by IFC, the Social Bonds - Illustrative use-of-proceeds case studies: Coronavirus aims to provide an illustrative reference by which issuers and bond market participants can evaluate the financing objectives of a Social or Sustainability Bond in light of the current coronavirus epidemic and its global socio-economic impact. Social bonds finance projects that directly aim to address or mitigate a specific social issue and/or seek to achieve positive social outcomes. Read more about IFC Social Bond.
Shared responsibility, global solidarity: Responding to the socio-economic impacts of COVID-19
March, 2020 - The United Nations has released a report calling for large-scale, coordinated and comprehensive multilateral response to the COVID19 pandemic. The new coronavirus disease (COVID-19) is attacking societies at their core, claiming lives and people’s livelihoods. The potential longer-term effects on the global economy and those of individual countries are dire.This report calls on everyone to act together to address this impact and lessen the blow to people. The report describes the speed and scale of the outbreak, the severity of cases, and the societal and economic disruption of COVID-19. Read more
How Responsible Investors should respond to the COVID-19 Coronavirus crisis
March 27, 2020 - Produced by the PRI, How Responsible Investors should respond to the COVID-19 Coronavirus crisis explores impacts of current pandemic and the global response to it, particularly how long-term stewards of capital, investors can and should act now to help reduce harmful impacts. An immediate, robust response to the COVID-19 crisis is needed across the global economy. Longer-term, the crisis raises broader questions on how our financial system is structured to respond to such threats. Read more
A path towards sustainability
March 23, 2020 - The traditional means and methods used to achieve ambitious economic goals driven by profit maximisation, particularly in emerging economies, is simply not ecologically sustainable. Climate change is no longer an approaching threat, it has become a real one, resulting in climate-induced disasters such as floods, droughts, earthquakes, hurricanes, severe rainfalls, wildfires, haze, typhoons, and extreme hot and cold weathers at a scale and scope the world has never seen before. Read more
Final report on EU taxonomy
March 9, 2020 - The Technical Expert Group (TEG) published its final report on EU taxonomy. The report contains recommendations relating to the overarching design of the EU Taxonomy, as well as extensive implementation guidance on how companies and financial institutions can use and disclose against the taxonomy. Read more
EU to consider proposed two-tier approach to 'green' rules
March 9, 2020 - European policymakers should use a two-tier approach to define sustainable investments in order to smooth the bloc’s transition to a low carbon economy, a group of industry experts said. Read more
Committing to climate-neutrality by 2050: Commission proposes European Climate Law and consults on the European Climate Pact
March 4, 2020 - The Commission presents a proposal to enshrine in legislation the EU's political commitment to be climate neutral by 2050, to protect the planet and our people. The European Climate Law sets the 2050 target and the direction of travel for all EU policy, and gives predictability for public authorities, businesses and citizens. At the same time, the Commission is launching a public consultation on the future European Climate Pact. Through this consultation the public will be involved in co-designing this instrument. Read more
UN launches world’s biggest survey of public opinion on climate change
February 13, 2020 - Today, celebrities and youth activists met with UN officials, governments and civil society to launch Mission 1.5, a campaign that aims to bridge the gap between people and governments on ambitious climate action. Mission 1.5 aims to give 20 million people around the world the opportunity to have their say on ways to limit climate change that they want to see adopted by government leaders. The campaign, led by the United Nations Development Programme (UNDP), hopes to address the disconnect between citizens and governments that has seen a groundswell of public opinion by citizens around the world, including school strikes and mass protests. Read more
Green credit takes off in Vietnam
February 7, 2020 - The State Bank of Vietnam (SBV) recently joined forces with IFC to build a social and environmental risk assessment toolkit for 10 industry sectors to help credit institutions integrate E&S issues in credit decision making. Experts estimate that Vietnam needs about $30 billion to implement its goals on green growth by 2020, 70 percent of which will come from the private sector. Read more
Financing the green transition: The European Green Deal Investment Plan and Just Transition Mechanism
January 14, 2020 - The European Union is committed to becoming the first climate-neutral bloc in the world by 2050. This requires significant investment from both the EU and the national public sector, as well as the private sector. The European Green Deal's Investment Plan - the Sustainable Europe Investment Plan - presented today will mobilise public investment and help to unlock private funds through EU financial instruments, notably InvestEU, which would lead to at least €1 trillion of investments. Read more
As sustainability and climate concerns dominate public debate, investors are taking note
January 11, 2020 - 2019 was the year where issues such as sustainability and climate concern dominated public debate, with Greta Thunberg emerging as a leading international commentator. It was also the year where Environmental, Social and Governance (ESG) factors moved towards the top of both the business and public policy agendas. Read more
UNDP launches Ocean Innovation Challenge
January 8, 2020 - The momentum on ocean protection and restoration has rapidly accelerated particularly since the 2017 Ocean Conference. However, a number of the SDG 14- Life Below Water targets still lag behind. Between overfishing, pollution, habitat loss and the multiple impacts of climate change on ocean ecosystems, the ocean has never faced such a diverse range of threats. UNDP launches a new call to action— Ocean Innovation Challenge (OIC) to accelerate progress on SDG 14 targets. The OIC seeks innovations that are transferable, replicable and scalable. The Challenge grants range from $50,000 to $250,000. Read more
Climate Bonds Launches Version 3 of the international Climate Bonds Standard - Universal compatibility for global green investment
December 11, 2019 - Climate Bonds has released Version 3.0 of the international Climate Bonds Standard; a significant development for green finance. Standard V3.0 incorporates major upgrades to the existing umbrella guidance for Climate Bonds Certification to meet market growth and demand for enhanced reporting, transparency and harmonisation around green definitions. Read more
COP25: Global investors urge countries to meet climate action goals
December 9, 2019 - More than 630 investors who collectively manage over $37 trillion in assets are calling on governments across the world to step up action to address climate change and achieve the goals of the Paris Agreement. Read more
Central banks and financial regulators are starting to factor in climate change
December, 2019 - Climate change is already a reality. Ever-more-ferocious cyclones and extended droughts lead to the destruction of infrastructure and the disruption of livelihoods and contribute to mass migration. Actions to combat rising temperatures, inadequate though they may have been so far, have the potential to drive dislocation in the business world as fossil fuel giants awaken to the need for renewable sources of energy and automakers accelerate investments in cleaner vehicles. Read more
Fifty Shades of Green - The world needs a new, sustainable financial system to stop runaway climate change
December, 2019 - This year the threats from climate change spurred demonstrations across the world and prompted the parliaments in the United Kingdom and many other countries to declare a “climate emergency.” These actions occurred against a backdrop of record temperatures across Europe and North America, the worst wildfires ever in the Amazon basin, severe tropical storms in Asia, and sea levels that are rising faster than previously thought. Read more
Climate Risk and Financial Systems of Latin America: Regulatory, Supervisory and Industry Practices in the Region and Beyond
December, 2019 - IDB launched a research program on the relationship between climate change and financial markets in the LAC region and published the report Climate Risk and Financial Systems of Latin America: Regulatory, Supervisory and Industry Practices in the Region and Beyond. Read more
Conference on Climate Change and its Impact on the Financial System
December 5&6, 2019 - Conference on Climate Change and its Impact on the Financial System – CEMLA (Centro de Estudios Monetarios Latinoamericanos) was organized in Mexico City to discuss policy and practical experience related to Green Finance and the Climate Change implications on the Financial System.
Click here to view Mr. Daniel M. Schydlowsky's paper Prudential Regulations for Greening the Financial System: Coping with Climate Disasters presented in the Conference.
Launch of Equator Principles - EP4
November 18, 2019 – The latest version of the Equator Principles (EP) - EP4, referencing the IFC Performance Standards, was launched in Singapore with over 100 attendees from Equator Principles Financial Institutions, Development Finance Institutions, and Export Credit Agencies. Read more
Green bond issuance tops $200bn milestone - New global record in green finance: Latest Climate Bonds data
October 21, 2019 – Progressive green bond and loan issuance for 2019 has just passed USD200bn with Climate Bonds analysis calculating the global figure at USD202.2bn as at 22/10/19. Read more
NGFS publishes A Sustainable and Responsible Investment Guide for Central Banks’ Portfolio Management
October 17, 2019 – Climate change is a source of financial risk. The Network for Greening the Financial System (NGFS) encourages central banks and supervisors across the globe to lead by example and include sustainability considerations in their portfolio management, without prejudice to their primary mandates. Therefore the NGFS today publishes A Sustainable and Responsible Investment Guide for Central Banks’ Portfolio Management. Read more
130 Banks Holding USD 47 Trillion in Assets Commit to Climate Action and Sustainability
September 22, 2019 – In a massive boost for climate action and sustainability, leading banks and the United Nations today launched the Principles for Responsible Banking, with 130 banks collectively holding USD 47 trillion in assets, or one third of the global banking sector, signed up. Read more
15 Thai commercial banks to jointly formulate guidelines for responsible lending
August 13, 2019 - In collaboration with 15 commercial banks, the Bank of Thailand will establish guidelines for responsible lending as part of their sustainable business operation. Thai banks are encouraged to lend based on environmental, social and governance (ESG) criteria which will serve as protection against adverse consequences, and thus ease potential problems. Four policies for responsible lending will be put in place within the end of next year, accounting for stakeholder engagement, internal implementation mechanisms as well as transparency.
Click here to view the Sustainable Banking Guidelines Responsible Lending issued by the Thai Bankers' Association.
Bangkok Sustainable Banking Forum 2019
August 13, 2019 - Building upon the momentum from last year’s event, the Bangkok Sustainable Banking Forum 2019 continues to deepen adoption of sustainability practices in the Thai financial industry and to alert the financial industry about imminent Environment, Social, and Governance (ESG) threats that would be sources of financial risks. Audiences include Board of Directors and high level executives of Thai financial institutions and also other relevant stakeholders who would have to work together in Thailand’s journey towards Sustainable Banking.
Financial Stability Review no. 23 - June 2019
The 23rd edition of the Banque de France’s Financial Stability Review is entitled “Greening the financial system: the new frontier”. This review shows the extent of climate change, assesses its potential financial and macroeconomic impacts and highlights the opportunities associated with financing the transition to a low-carbon economy. To meet the challenge of climate change, financial actors, both public and private, have a key role to play in financing this transition, whose amounts are still well below those required.
A Call for Action: Climate Change as a Source of Financial Risk
April 2019 - The Network for Greening the Financial System collectively acknowledges that climate-related risks are a source of financial risk. Some members have extended this analysis to broader environmental risks finding that these are a source of financial risk as well. The members of the NGFS therefore call for collective action and have issued six recommendations in its first comprehensive report. IFC/SBN is an observer of the NGFS, providing collective experience and insights in sustainable finance from the emerging markets.
Emerging Market Green Bonds Report 2018
April 2019 - Amundi and IFC published a new report on green bonds in emerging markets, which specifically addresses current gaps in the green bond market. The four main findings are: (i) capital flow from developed markets to emerging markets has a critical role in combating climate change; (ii) green bonds are an effective financing mechanism with benefits to issuers and investors; (iii) the green bond market is nascent in emerging countries, with the potential for promising growth; and (iv) financial institutions will continue to drive future growth of the green bond market in emerging countries. The report highlights the role of the policy makers in the emerging markets, citing findings and case studies from the SBN report “Creating Green Bond Markets”.
Values at Risk? Environmental and Social Risks in the Financial Sector
Emerging Market Regulators Consult on Recommendations Related to Sustainable Finance
February 1, 2019 - IOSCO´s Growth and Emerging Market Committee (GEMC) published the consultation report Sustainable finance in emerging markets and the role of securities regulators, which proposes 11 recommendations for emerging market member jurisdictions to consider when issuing regulations or guidance regarding sustainable financial instruments. Among other things, the recommendations propose requirements for disclosure of material Environmental, Social and Governance (ESG) specific risks, aimed at enhancing transparency.
FEBRABAN Launches Implementing the TCFD Recommendations: Roadmap for the Brazilian Banking Sector
December 2018 - The Brazilian Federation of Banks (FEBRABAN) implemented the first phase of an institutional project to support Brazilian banks in the adoption of the recommendations published by the Task Force on Climate-related Financial Disclosures (TCFD) of the Financial Stability Board. A roadmap with two types of actions was developed: (i) collective actions by the banking sector through FEBRABAN; and (ii) individual actions by the banks. The full report is available at FEBRABAN website and can be downloaded through the following link: Implementing TCFD Recommendations
EU Consultation and Workshops on Taxonomy
December 3, 2018 – EU launched the 1st round climate mitigation activities. Technical experts and stakeholders can provide feedback on selected economic activities and the proposed criteria for the first sub-set of economic activities expected to make a substantial contribution to climate mitigation under the EU Commission’s taxonomy proposal. Technical experts are invited to register for workshops to provide technical input to a series of activities on the development of new criteria.
United Nations Secretary-General Launches Task Force on Digital Financing of Sustainable Development Goals
November 29, 2018 - United Nations Secretary-General António Guterres today announced the launch of a global task force charged with recommending strategies to harness the potential of financial technology to advance the Sustainable Development Goals. The Task Force on Digital Financing consists of leaders from a range of sectors from both developed and developing countries.
UN Environment and 28 Banks Launch Public Consultation on Principles for Responsible Banking
November 26, 2018 –In a bid to define the banking industry’s role and responsibilities in shaping a sustainable future, UN Environment Finance Initiative (UNEP FI) and 28 banks from around the world are launching the Principles for Responsible Banking for global public consultation today at its Global Roundtable in Paris. By committing to the new framework, banks will be aligning their business with the objectives of the Sustainable Development Goals (SDGs) and the Paris Climate Agreement.
UNEP FI Working with 16 Global Insurers to Better Understand Risk & Implement TEFC Recommendations
November 13, 2018 - UNEP FI announced a partnership with 16 of the world’s largest insurers—representing around 10% of world premium and USD 5 trillion in assets under management—to develop a new generation of risk assessment tools designed to enable the insurance industry to better understand the impacts of climate change on their business.
NGFS Publishes First Progress Report
October 11, 2018 - The Central Banks and Supervisors Network for Greening the Financial System (NGFS), launched at the Paris One Planet Summit on 12 December 2017 held a Plenary meeting in Bali aside the Annual Meetings of the IMF and World Bank Group and published today its first progress report : https://www.banque-france.fr/sites/default/files/media/2018/10/11/818366-ngfs-first-progress-report-20181011.pdf
TCFD Publishes First Status Report While Industry Support Continues to Grow
September 26, 2018 - The Task Force on Climate-related Financial Disclosures (TCFD) published its 2018 Status Report to the Financial Stability Board (FSB) today. The report provides an overview of current disclosure practices and their alignment with the core elements of the TCFD recommendations.
UNDP Launches ‘SDG Impact’ to Help Unlock Investment in Global Goals
September 25, 2018 - A new initiative led by the United Nations Development Programme (UNDP) aims to help channel private investment and capital to meet the vision of the Sustainable Development Goals (SDGs). Called SDG Impact, the initiative, launched today at the 73rd United Nations General Assembly in New York, will work with the private sector on how best to invest in enterprises and markets in ways that help achieve the SDGs, an ambitious blueprint for a world without poverty or inequality.
The Equator Principles Turn 15
September 18, 2018 - The Equator Principles - a global benchmark for sustainable project finance - were created 15 years ago. 94 banks in 37 countries adhere to the Equator Principles, covering more than 80 percent of project finance transactions in emerging markets.
European Commission announces Action Plan for a greener and cleaner economy
March 8, 2018 - On the basis of the recommendations set out by the High-Level Expert Group on sustainable finance (HLEG), the European Commission announced an EU strategy on sustainable finance setting out a roadmap for further work and upcoming actions covering all relevant actors in the financial system.