What’s Happening in Sustainable Finance: Innovation is the Name of the Game

Posted on January 17, 2022

 

 

 

 

Listen on your favorite player:

 

Episode Summary

Hosts

  • Nicholas Gandolfo, Director, Corporate Solutions
  • Marika Stocker, Senior Manager, Corporate Solutions

The recurring theme in this episode’s round up of market developments is innovation! Nick also offers a list of recommended reading for the month (be prepared, it’s a long one) and concludes the tale of his encounter with an elephant in Bangladesh first mentioned in October’s episode.

Innovation is the Name of the Game in Sustainable Finance

The thread of innovation continues throughout sustainable finance – from green cryptocurrency to ESG derivatives, and relinked sustainability instruments (sustainability-linked bonds tied to sustainability-linked loans). Ultimately, it’s good to see the market continue to develop, but caution and scrutiny are needed to ensure that labeling and the increasing complexity of financial instruments don’t lead to greenwashing. 

Greening of IPOs

On the heels of Allbirds’ initial public offering (IPO), for which Sustainalytics provided a corporate ESG assessment of the company, there are continuing discussions about the greening of IPOs. As the number of companies going public continues to rise, they are each looking for ways to signal to investors that they are a safe bet when it comes to managing material ESG risks and overall company management. Having their ESG or sustainability performance assessed by a third-party prior to their IPO is one way to do that. Watch this space as we see how this trend develops for new IPOs in 2022.

Recommended Reading

Nick runs down a list of reports and research focused on reducing emissions and transition finance.

 

Key Moments

01:28 Market overview
02:00 Greening of IPOs
02:40 Google adds carbon data to flight info
03:00 Green cryptocurrency
03:32 EF conference - ESG Risk Ratings
04:08 ESG derivatives
04:46 Taxonomy report from Natixis
05:11 Nuclear power in sustainable finance
05:46 COP26 highlights
06:19 New in sustainability-linked finance: relinked SLBs
07:04 Biodiversity COP15 highlights
07:31 Green industry unicorns
08:03 Report recommendations: McKinsey & IEA methane reports
08:40 CBI interactive data tool
09:36 Green bonds overview
15:10 Social bonds and loans overview
21:21 Audience questions
28:21 SLL overview
30:53 Labeled products overview
32:16 Transition finance overview
33:30 Regulatory and country update

 

Links to Select Resources

Recent Content

What’s Happening in Sustainable Finance: Market Headwinds, GHG Targets in Sustainability-Linked Instruments, the Focus on Supply Chains, and More

In this month’s overview of all things sustainable finance, we look at the shifting global market, ponder the potential impact of the EU green bond standard, and highlight gender-based KPIs in sustainability-linked finance instruments.

Sustainalytics Podcast

What’s Happening in Sustainable Finance: The Shifting Regulatory Landscape, Reporting on Impact, Focus on Biodiversity, and More

In this month’s rundown of all things sustainable finance, we look at shifting regulations for investors, issuers and service providers, how issuers can measure the impact of their GSSS bonds, and the growing spotlight on biodiversity in financial markets.

Listen to the latest episode of the Sustainalytics Podcast | Aligning Executive Action to Strategy With Sustainability-Linked Compensation

The Sustainalytics Podcast | Aligning Executive Action to Strategy With Sustainability-Linked Compensation

Learn about how tying executive compensation to ESG performance can enhance a company’s accountability and transparency, the challenges organizations are facing, the types of metrics firms use for ESG-linked compensation programs, industries and regions with high pay-link adoption, steps to make your company’s program credible and transparent, and more.

What's Happening in Sustainable Finance: Whether War Could Spur Adoption of Renewables, Thoughts on Just Adaptation, and More

In this month’s round-up of the sustainable finance market, we discuss how geopolitical conflicts could spur the adoption of renewables, considerations for a just adaptation, and much more.