Why Investors Need Climate Change Probabilities Not ‘Certainties’
Current climate-change scenarios, while effective for policy development, are of little use to investors, and could even be increasing jeopardy. TMI talks to a climate risk scientist from the EDHEC Risk Climate Institute about the issue, and a possible solution. The precision with which financial projections based on climate-change scenarios have been presented is dangerous, […]
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 […]
Cheaper, Faster and Sustainable: Digital Trading Goes Live
In the ever-evolving landscape of corporate finance, the Electronic Trade Documents Act 2023, which received Royal Assent in July and will be in operation from September 20, stands as a monumental milestone, poised to reshape the way corporate treasurers manage financial transactions. The UK has become the first G7 and G20 country to enact legislation […]
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 […]
ISSB’s Standards are a Major Boost for Market Transparency on Sustainability
The recent launch of the International Sustainability Standards Board’s (ISSB’s) two standards for sustainability-related financial reporting – covering general requirements (IFRS S1) and climate-related disclosures (IFRS S2), respectively – is a major milestone in raising the status and promoting the standardisation of sustainability-related financial reporting globally. The ISSB has already received support from bodies such […]
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, […]
How to Protect Ourselves from Unethical Al
AI is now part of everyday life. As a result, we have a technology – and one that is being continually improved – that helps us to perform tasks more efficiently. But we also want from AI is a system that will not interfere with or undermine human capabilities. One of the biggest challenges around […]
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, […]