Swapping Vanilla for Green
ESG’s Expanding Role in Trade Finance Sustainable finance has formed strong roots in the loan and bond markets, but where does it stand in the world of trade? Societe Generale’s Charline Profillet, Deputy Head, Structured Trade Finance, and Marie-Gabrielle de Drouas, Head of ESG Global Transaction Banking, shine a light on its developing role. Trade […]
Labelled Bonds’ Use of Proceeds: Transparency and Ambition Needed
Marina Petroleka, Global Head of Research, Sustainable Fitch, discusses green, social and sustainability bonds’ contribution to environmental and/or social impacts and the level of transparency and ambition in project or target selection, based on Sustainable Fitch’s ESG Ratings data. Sustainable Fitch’s ESG Ratings provide a quantitative and qualitative assessment of the impact an issuing entity […]
Transition Finance Gap Remains Amid Uncertainties
The purpose of transition finance is to fund the improvement of carbon-intensive activities in pursuit of a more sustainable world. This contrasts with green finance, which is used by companies or projects already considered as being green. Transition finance is one of several tools developed in recent years to align global financial flows with a […]
Gas, Oil and Revolvers: an ESG Success Story
Diversified Energy Company recently converted its existing traditional $300m reserve base lending facility into a sustainability-linked reserve-based revolver – one of the first of its kind. The conversion incorporated some demanding environmental and social KPIs. John Crain, Vice President of Treasury, Diversified Energy, recounts the experience to TMI. When it comes to matters of sustainability, […]
Saving the Planet and Boosting Profits
How Treasury can Support ESG in the Supply Chain An organisation’s commitment to ESG – environmental, social, and governance – must go beyond lip service, extending into real behavioural and cultural changes both within the organisation and its external partners. Treasurers can facilitate the transition to sustainable practices by providing payment incentives to deserving suppliers […]
ESG Sukuk Issuance Surges Despite Market Volatilities
ESG-linked sukuk, or Islamic bonds, are emerging as significant funding tools in Muslim-majority countries, with growing support from supranationals, sovereigns and government-related entities. In 2022, the volume of outstanding ESG sukuk expanded by 11.2% quarter-on-quarter to reach $19.3bn, with $4.3bn issued in H122. Fitch now rates more than 80% of the hard-currency ESG sukuk market, […]