Global Climate News

Robeco, a Dutch asset manager, has expanded its engagement in climate and nature, focusing on natural resource management, deforestation (expanding from palm oil to soy, beef, leather, paper and pulp), biodiversity, and human capital management. They are also initiating new themes on transition minerals (supply chains in electric vehicle batteries) and protecting shareholder rights from weakening regulations.

Danish companies are increasingly integrating ESG metrics into their financing, with sustainability-linked loans (SLLs) becoming a key instrument. The Nordic market for SLLs grew to approximately EUR 11 billion in 2021. Companies like A.P. Møller – Maersk, Pandora, and Coop Danmark have adopted SLLs, linking borrowing costs to sustainability targets. Nordea expects Danish companies to have sustainability-linked loan agreements worth around DKK 200 billion within three years.

The European Union proposed a European Green Bond Standard (EuGBS) to increase the convergence of green bonds internationally. The ECB recommended that the EuGBS should become mandatory for newly issued green bonds within 3-5 years to enhance market functioning and strengthen the green credibility of the EU green bond market. The EuGBS requires supervision of external reviews by ESMA and taxonomy alignment of use of proceeds. The global supply of green bonds in 2021 nearly doubled compared to 2020.

The article discusses the suitability of sustainability-linked bonds (SLBs) versus transition bonds for addressing the energy transition. It argues that SLBs, being forward-looking and focused on KPI improvements, are better suited than transition bonds, which only ensure projects are 'not as dirty as they could be'. The author acknowledges the nascent stage of the SLB market and the need for clearer definitions of 'material' and 'ambitious' but advocates for prioritizing SLBs.

Egypt has allocated $25 million for drilling three developmental wells in East Abu Sinnan in FY2025/2026. ADNOC Gas awarded a $1.2 billion contract to a consortium of Petrojet and Engineering for Petroleum Industries & Operations. The Suez Canal Bank participated in providing $108 million in financing to MAF for agricultural product manufacturing. A government official reported $1 billion in fuel consumption savings for electricity generation last year.

Egypt's El Alamein Petroleum Company allocated $25 million to drill three development wells in East Abu Sinnan in FY2026/2025. The company also plans to use solar energy to power one well, reducing solar consumption and carbon emissions.

Swedish real estate company Wallenstam, owning 66 wind turbines, is self-sufficient in renewable energy. They prioritize five UN Sustainable Development Goals, focusing on sustainable cities and communities. A stakeholder analysis showed surprisingly aligned priorities across groups, with social issues ranking highly. Individual electricity and water metering reduced consumption by 10-25%.

US business groups are attempting to weaken EU sustainability rules. The article does not provide specifics on which groups or the exact methods they are using.

China-based Hanyesteel, a steel plate factory, highlights its commitment to environmental sustainability and responsible production practices in its steel production, aiming to reduce the environmental impact.

\"Six of the largest US banks (JP Morgan, Morgan Stanley, Bank of America, Citigroup, Wells Fargo, and Goldman Sachs) have withdrawn from the UN-backed Net Zero Banking Alliance (NZBA). The withdrawal, following years of speculation, may be linked to the incoming Trump administration's anti-ESG stance. These banks cited a focus on the NZBA's partner organization, GFANZ, and maintained their individual net-zero commitments by 2050. Three smaller US banks remain in the NZBA.\"

MSCI, a leading provider of ESG ratings, reported USD 250 million in ESG business revenue, with USD 150 million from ESG ratings and climate solutions. Their ESG business has shown a 30% compound annual growth rate over the last decade. The company's approach focuses on measuring long-term, material risks, using alternative data sources beyond self-reported information from companies. MSCI observes increasing corporate engagement with ESG issues, particularly in the last three years, with a response rate of roughly 75% from companies in the MSCI World Index.

The Loan Market Association (LMA), along with the European Leveraged Finance Association, is working to provide guidance on incorporating ambitious, meaningful, and sincere ESG targets into leveraged financing. This follows a recent trend of increased ESG considerations in leveraged loans, driven by investor pressure and the direct impact of ESG factors on credit risk. The LMA, along with its US and Asia Pacific counterparts, recently updated the Sustainability-Linked Loan Principles to include mandatory external verification of ESG performance.

US-based Ameren Missouri launched multiyear cost-saving programs for customers, totaling \\$75 million in rebates and incentives. The programs include energy efficiency and demand response initiatives for residential and business customers, with \\$20 million allocated for income-eligible customers and social service agencies. The goal is to produce 102,000 megawatt-hours in energy savings.

During the COVID-19 crisis, interest in sustainable investments grew. Sustainable Choice products now make up almost 25% of all new investments by private customers. One product, Sustainable Balanced Funds, reached €1 billion in net flows 19 months after launch.

The Nordic region reached a record year-to-quarter volume of approximately USD 46.5bn in sustainable bond issuance during the first nine months of 2023. Finland surpassed its previous full-year sustainable bond volume record, totaling approximately USD 6.7bn by the end of Q3 2023. However, Nordic Q3 sustainable loan volume decreased by 16% quarter-on-quarter and 21% year-on-year.

Nordea, a Nordic financial services group, launched a green securities financing framework to support real estate companies' green initiatives. The framework allows companies to obtain green-labeled financing for sustainable projects using their liquid assets as collateral. This complements other green financing products and contributes to Nordea's own green bond asset pool, aligning with its net-zero emissions target by 2050.

Jeremy Collins has submitted an environmental permit application to the Environment Agency for Meridon House in Bishops Sutton, UK. The application concerns waste and mining waste operations, installations, water discharge and groundwater activities, and medium combustion plant and specified generators.

US-based Avnet released its FY24 sustainability report, detailing environmental, social, and governance initiatives. The report aligns with GRI standards, SASB standards, UN SDG frameworks, and expands TCFD reporting with climate scenarios and Scope 3 assessment results. Avnet's sustainability priorities include governance & ethics, people & culture, and environmental stewardship.

Chile launched a training program on Circular Economy financing, co-funded by CTCN and supported by Go4SDGs. The program aims to promote circular economy financing in the business sector and strengthen financial institutions to expand their portfolios in circular economy initiatives contributing to the country’s decarbonization. The program, implemented by UNEP FI and Fundación suiza BASE, will involve 8 sessions (2 in-person, 6 virtual) and a practical methodology to develop a theoretical circular economy project.

The EU Parliament published the amended final text of the European Green Bond Standard (EuGBS). The standard is voluntary; issuers must use it to label green bonds as “European Green Bonds” or “EuGBs.” A five-year evaluation period will assess the standard’s impact and feasibility. The EU Taxonomy’s technical screening criteria changes may require issuers to reconsider underlying investments in outstanding EuGBs. The European Securities and Markets Authority highlighted the importance of 100% allocation with high certainty for green bonds.