Results - 10 of 10 items found
Jan 18, 2022
Sustainability-linked finance is designed to incentivize the borrower’s achievement of environmental, social, or governance targets through pricing incentives. Launched in 2017, it has now become the fastest-growing sustainable finance instrument, with over $809 billion issued to date in sustainability-linked loans and bonds. Yet these instruments are still nascent in emerging markets, which represent only 5 percent of total issuance to date. This note shares examples of recent sustainability-linked financing, including several involving IFC in various roles, to highlight how investors can utilize these new instruments in emerging markets and mitigate greenwashing risks.
English | 8 Pages—January—Note 110 | IFC 2022
Apr 15, 2021
The COVID-19 pandemic hit the tourism industry particularly hard, affecting livelihoods and exacerbating some pressures on the natural capital resource base. Supporting the tourism sector recovery is an opportunity to Build Back Better, ensuring that business investments lead to a sustainable and resilient shared-growth pathway that is good for tourism and the natural capital on which it depends. Further sustainable management of the Blue Economy could more than double its economic contribution to global GDP. Therefore, the “new normal” must deepen the consideration of Blue Natural Capital and its dynamic relationship with economic sectors across coastal landscapes and markets. The experience of the State of Palawan in the Philippines is explored in this note. It serves as a useful model for weighing the opportunities and challenges typical of coastal tourism areas and exploring natural dependencies therein.
English | 8 pages — April —Note 101 | IFC 2021
Oct 23, 2020
Nature’s current decline, underpinned by unsustainable consumption and production patterns, population dynamics, deforestation, and land use change, is a clear risk to business, markets, and society. The way that businesses measure, value, relate to, and account for the interaction between nature and people must evolve, and quickly. This note underscores the urgency of action and shares ways companies can use natural capital approaches to help maintain both nature and their ongoing role in advancing prosperity and development in emerging markets.
English | 8 pages — October — Note 92 | IFC 2020
Dec 22, 2016
Climate change presents risks and opportunities for the financial sector in both emerging and advanced economies. Financial institutions cannot afford to be outside of the transition path to low-carbon economies. Energy subsidies, emission standards, and carbon prices will all have a direct impact on the financial positions of these institutions’ clients, making climate risk an important element of any credit decision. Yet there are also significant opportunities for financial institutions to provide innovative financing products for energy efficiency upgrades, renewable power generation, green buildings, green transport, and climate-smart agriculture and architecture. And there is a growing community of investors seeking new climate and environment friendly opportunities.
English | 6 Pages - December - Note 27 | IFC, 2016 6| IFC
Dec 5, 2016
The international market for green bonds—securities that raise capital for specific climate or environmental sustainability purposes—has experienced tremendous growth and could reach an annual market value of over $100 billion dollars this year. As part of this growth, new market tools, skills, and capital have been introduced into the green bond market to reduce greenhouse gas emissions and more broadly address the problem of climate change.
ENGLISH, 6 PAGES – DECEMBER – NOTE 25 | IFC, 2016
Sep 14, 2016
Emerging markets are especially vulnerable to threats from climate change. Storms, droughts, and floods jeopardize the livelihoods of farmers, while extreme temperatures limit the ability of workers to be outdoors. Insurance is one tool that can help emerging markets adapt to climate change by heading off threats before they become disasters. Some pilot projects around the world are showing promise in using insurance to help emerging markets reduce the impact of climate change.
English | 3 Pages - September - Note 13 | © IFC, 2016
Sep 14, 2016
Cities, which are home to half of the world’s population, are on the front lines of climate change. Extreme temperatures, storms, and floods have a higher impact in crowded urban areas. And cities in emerging economies will bear an even greater burden of climate change threats. Given their vulnerability, as well as their ability to affect change, cities will be key players in shaping efforts to lessen the impact of climate change. Now a number of new initiatives are helping urban leaders better assess and respond to climate risks.
English | 4 Pages - September - Note 12 | © IFC, 2016
Sep 14, 2016
Insurance plays a vital role in protecting people, businesses, and public institutions against shocks, allowing them to transfer risks and purchase security. Insurers in advanced economies even act as financial intermediaries. In many emerging economies, however, insurance is still in a nascent stage. Yet it has the potential to become a critical tool for businesses to build operations that are resilient to climate change while also providing a source of economic growth. For insurance in emerging economies to take off, the public and private sectors must first lay the necessary groundwork.
English | 4 Pages - September - Note 11 | © IFC, 2016
Sep 14, 2016
Climate change doesn’t just threaten the environment, it poses risks to a country’s businesses and economy. Understanding these risks can be complex, yet there are a growing number of tools that can help businesses analyze how their operations will be affected. In order to integrate climate risk into their overall risk management models, companies will need a thorough understanding of how climate change can affect them. With it, they can then take steps to build resilience into operations.
English | 5 Pages - September - Note 10 | © IFC, 2016
Sep 14, 2016
Severe storms, record heat waves, intense droughts, and floods—the impact of climate change rises every year and economic and financial losses rise with it. Insurance plays a major role in helping businesses in advanced economies mitigate the consequences of the changing climate and prepare for policy changes ahead. But insurance in emerging markets isn’t yet able to make the same contribution, despite the fact that natural disasters disproportionally affect people and firms in these countries. Recently, however, a number of new business and donor initiatives have begun to create innovative approaches to using insurance to address climate change.
English | 5 Pages - September - Note 9 | © IFC, 2016