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.

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.

\"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of the largest US banks (JP Morgan, Morgan Stanley, Bank of America, Citigroup, Wells Fargo, and Goldman Sachs) have withdrawn from the UN-backed Net Zero Banking Alliance (NZBA).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.

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.

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.

Nordea, the largest financial services group in the Nordic region, has ramped up its ESG training for employees through EFFAS’ Certified ESG Analyst (CESGA) program. The aim is to better understand clients’ sustainability concerns and support their transition. Nordea offered two CESGA programs in 2022 and 2023, certifying credit sales, research staff, and selected client executives. They are also conducting teach-ins and training programs to deepen employee knowledge and promote dialogue with clients on sustainability issues. Nordea has committed to enhancing its ESG competence, knowledge, and advice under its sustainability policy.

Global companies are increasingly incorporating Scope 3 emissions into decarbonisation strategies. According to the Net Zero Tracker, nearly 70% of the global economy is now covered by net-zero pledges. The SBTi’s net-zero corporate standard requires inclusion of Scope 3 emissions in long-term targets. CDP data shows supply chain emissions are approximately 11.4 times higher than operational emissions.

The World Bank issued a NOK 5 billion sustainable development bond to raise awareness for biodiversity and ecosystem services. The bond, managed by Nordea, drew strong investor interest, highlighting growing investor focus on biodiversity. The World Bank also emphasized the need to integrate nature into economic models and decision-making, noting that over half of the world’s GDP depends on nature’s services. An estimated $700 billion in extra funding is needed annually to reverse biodiversity loss by 2030.

The Nordic sustainable bond market demonstrated resilience from 2021 to 2023. Green bonds dominated (83% in H1 2023), with Sweden leading in issuance amount (EUR 83,166 million) and number of issuers (840). Corporates now dominate most Nordic markets except Norway (financial institutions). Market maturation shows increasing seasoned issuers.

Johan Trocmé and Viktor Sonebäck from Nordea Thematics discussed underinvestment in limiting global warming since 2016 and how ESG could be a solution. The Paris Agreement's commitment to investing in limiting global warming was also mentioned.

\"India and the Middle East-based sentra.world, a sustainability integration company, has partnered with over 30 steel companies to help them decarbonize. They offer digital solutions for CO2 emissions measurement, reporting aligned with standards like CBAM and ISO, and net-zero target achievement. They also facilitate carbon credit monetization and ESG metric management.\"

The European Banking Authority (EBA) published final Guidelines on managing Environmental, Social, and Governance (ESG) risks. These Guidelines, based on Article 87(a)5 of the CRD, set requirements for institutions to identify, measure, manage, and monitor ESG risks, including plans for resilience. They will apply from January 11, 2026 (later for smaller institutions).

Poland-based RBB Steel Service Centre and ArcelorMittal Europe – Flat Products signed a Memorandum of Understanding focused on reducing CO2 emissions in the supply chain and using XCarb® solutions. RBB placed its first order of hot dip galvanized steel produced via the XCarb® recycled and renewably produced route.

Global sustainable bond market showed strong growth in 2021, exceeding expectations. Despite market volatility in 2022 due to geopolitical factors, sustainable bonds outperformed traditional counterparts. The share of sustainable bonds issued increased from 9% to 12%. In Q1 2022, Sweden remained the most active Nordic market, followed by Denmark and Finland. The Kingdom of Denmark issued its first sovereign green bond (DKK 5 billion, 10-year maturity), focused on renewable energy and green transportation. Sustainability-linked bonds showed the fastest growth (136% increase compared to Q1 2021), with new sectors like real estate (Atrium Ljungberg) and municipalities (Helsingborg) participating.