What's Happening in Sustainable Finance: Rhino Bonds Support Conservation, Spotlight on Social Bonds, and More

Posted on May 19, 2022

 

 

 

 

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Episode Summary

Hosts

  • Nicholas Gandolfo, Director, Corporate Solutions
  • Aditi Bhatia, Regional Sales Manager, Corporate Solutions

In our latest episode, we have a round-up of recent developments in the global sustainable finance market. From innovative instruments for financing conservation efforts to growing ESG activity in the private equity space, to a new taxonomy for social bonds, our hosts Nick and Aditi have you covered. Check out the highlights below or listen to the full episode wherever you stream your podcasts.

Social Bonds in the Spotlight

There have been some key developments in the social bond market in recent months. The Platform on Sustainable Finance published its report on the EU’s Social Taxonomy providing clarification on the types of investments that would be considered socially sustainable and proposing a structure for a social taxonomy. Overall activity in social bonds issuance appears to be declining compared to recent years. This is partly due to market stabilization following a surge of issuance during the height of the pandemic and social use of proceeds frequently being included in sustainability bonds frameworks which cover both green and social projects. However, there is growing diversity in the types of social factors being addressed as more issuances come to market related to matters around gender, race, and LGBTQ issues.

Rhino Bonds: Market Innovation to Support Conservation

This new form of social impact bond was recently issued by the World Bank. The US$150 million “Rhino Bond” or Wildlife Conservation Bond will help to fund conservation efforts for the black rhino population in South Africa. The Rhino Bond channels investments to achieve specific conservation outcomes with proceeds being used to help staff in national parks battle poachers and improve conditions for the animals. This bond offers a new model to finance conservation efforts by directly linking the outcome of rhino conservation to investor payouts, and investment success. You can read more about the bond issuance here

Recommended Reading

Nick once again provides a list of his recommendations for reports on ESG, sustainable finance, climate change, and transition issues. 

 


Gain Insight on the Material ESG Issues Companies Face and Approaches for Effective Management

WEBINAR REPLAY

Are you aware of the material ESG issues facing your company? Do you know how to effectively address them? Watch our recent webinar, Addressing Key Corporate ESG Issues: Lessons From Industries With High ESG Risk. Our panel of ESG sector analysts provide insight on the material ESG issues facing five high risk sectors. Learn how companies with high exposure to ESG risk manage their most material issues and how you can too.

 

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Key Moments

0:00:46 Market overview
0:01:11 Ongoing market growth
0:01:14 Sustainable bonds in emerging markets
0:01:24 ESG performance and bond premiums
0:01:49 Social bond market under threat?
0:02:46 ESG activity in private equity
0:03:07 Implications for Ukraine conflict on green transition
0:03:49 Prevalence of sovereigns in ESG transactions
0:04:05 Sustainable securitization
0:04:44 Just transition
0:05:23 Gender-themed social bonds
0:05:56 Continuing conversation around greenwashing
0:06:31 Big pharma going green
0:07:06 Rhino bond
0:08:32 SBTi – public consultation on cement
0:08:48 Social Taxonomy Report
0:10:00 ACT Transition Methodologies
0:10:07 CBI bond pricing report
0:10:13 CBI report on taxonomies
0:10:29 TNFD beta report
0:10:57 GRI sector standard for coal
0:11:15 IPCC assessment report
0:11:33 Environmental Finance SLL/ SLB metrics report
0:12:00 SLB overview
0:15:52 SLL overview
0:18:02 Audience questions
0:22:05 Green bonds overview
0:28:16 Green loans overview
0:29:33 Social bonds overview
0:31:45 Labeled products, transition, and regulatory overview

 

Links to Select Resources

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