Launched ahead of the UN Climate Action Summit in New York, the PRB provides a global framework for a sustainable banking system. By Paul A. Davies and Michael D. Green On 22 September 2019, the United Nations and a group of 130 banks from 49 countries launched the UN Principles for Responsible Banking (PRB) to … Continue Reading
Proposed revisions to the Equator Principles 3 include human rights, social risk, and climate change. By James Barrett, Paul A. Davies, Joel H. Mack, and Michael D. Green The Equator Principles Association (EP Association) recently released the draft text of the Equator Principles (EPs) version 4 (EP4). The EP Association intend the draft text to … Continue Reading
Green Finance Strategy builds on the Green Finance Taskforce report, highlighting the City of London’s role in delivering a green economy. By Paul A. Davies and Michael D. Green On July 2, 2019, the UK government published its Green Finance Strategy (Strategy), subtitled “Transforming Finance for a Greener Future.” The document outlines how the finance … Continue Reading
Banks to disclose climate alignment of shipping portfolios with IMO’s strategy of 50% emissions reduction by 2050. By Paul A. Davies and Michael D. Green On June 18, 2019, a group of 11 banks — including Citi, Societe Generale, DNB, Citigroup, ABN Amro, and ING — announced the adoption of the Poseidon Principles (PPs). The … Continue Reading
Three new publications provide issuers with key guidance on Green, Social, and Sustainability Bonds. By Paul A. Davies, Michael D. Green, and Aaron E. Franklin The Executive Committee for the Green Bond Principles recently published three documents providing key guidance complementing the Green Bond Principles (GBPs), the Social Bond Principles (SBPs), and the Sustainability Bond … Continue Reading
The guidelines, along with three new reports on green finance, demonstrate the European Commission’s intent in respect of meeting its Paris Agreement targets. By Paul A. Davies, Michael D. Green and Clément Pradille On June 18, 2019, the European Commission (Commission) published new guidelines on corporate climate-related information reporting, as well as three new reports … Continue Reading
The seven-week inquiry will assess the potential impact of decarbonization on the UK economy, and examine opportunities for the growth of green finance. By Paul A. Davies and Michael D. Green On World Environment Day, June 5, 2019, the UK Treasury Committee (the Committee) launched an inquiry into the decarbonization of the UK economy and … Continue Reading
Mark Carney’s latest speech discusses the importance of green finance in transitioning to a low-carbon economy. By Paul A. Davies and Michael Green In September 2015, Bank of England Governor Mark Carney delivered his milestone Tragedy of the Horizon (Tragedy) speech. This speech warned that climate change will lead to financial crises, falling living standards, … Continue Reading
A new regulation will detail how financial market participants and financial advisors must incorporate ESG risks and opportunities in their procedures. By Paul A. Davies and Michael D. Green The European Union (EU) is committed to being the global leader in fighting climate change and implementing the Paris Agreement. Since climate change is increasingly viewed … Continue Reading
Companies with stronger ESG standards usually perform better financially, according to recent research. By Paul A. Davies and Michael D. Green A recent report by Axioma, provider of enterprise market risk and portfolio analytics solutions, found that companies with better environmental, social, and corporate governance (ESG) standards “…often outperform the market” and exceed their financial … Continue Reading
Initiative will advance the UK’s Paris Agreement targets by serving as a “one-stop shop for world-leading climate science, and for capital.” By Paul A. Davies and Michael D. Green UK Chancellor, Philip Hammond, has announced plans to launch a Green Finance Institute (GFI), through funding from both the UK government and the City of London Corporation. … Continue Reading
Latest iteration of popular guidelines continue with voluntary, market-driven approach. By Paul A. Davies and Aaron E. Franklin The annual update of the Green Bond Principles (now also including the Social Bond Principles, and the Sustainability Bond Guidelines, collectively, the Principles) on June 14, 2018 created few surprises. The Principles, highly influential in the sustainable … Continue Reading
The action plan recommends leveraging London’s leading role in global green finance to grow green opportunities. By Paul A. Davies The Green Finance Taskforce’s first report, “Accelerating Green Finance,” advises the UK government on how to achieve important green finance goals, carbon targets in relation to the Paris Agreement. The report, published on 28 March, … Continue Reading
The Green Loan Principles may help sustainable investment growth By Paul A. Davies and Aaron E. Franklin The Loan Market Association and the Asia Pacific Loan Market Association recently announced the “Green Loan Principles” joint project. This two-page document, announced on March 21, 2018, seeks to stimulate the de minimis green loan market by following … Continue Reading
Recommendations signal a major shift for Europe’s financial system through both legislative and non-legislative changes. By Paul A. Davies and Aaron E. Franklin The European Commission (EC) has revealed its action plan for mobilizing the financial system to encourage a “greener and cleaner economy.”[1] The plan, which was released on 8 March, states that it … Continue Reading
New requirements build on China’s rapid progress in green finance to increase transparency across the market By Paul Davies, Bridget Reineking and Andrew Westgate The China Securities Regulatory Commission (CSRC), in collaboration with China’s Ministry of Environmental Protection, has introduced new requirements that, by 2020, will mandate all listed companies and bond issuers to disclose environmental, … Continue Reading
By Paul Davies, Bridget Reineking, and Andrew Westgate Since establishing the People’s Bank of China’s Green Finance Task Force in 2014, China has encouraged green financing mechanisms through a variety of pioneering initiatives. For example, the country has designated five green finance pilot zones, within which financial institutions are incentivised to provide credit and special … Continue Reading
By Paul Davies and Andrew Westgate On 18 October 2017, the 19th National Congress of the Chinese Communist Party will convene, after the week-long National Day holiday, marking one of the most important dates on the Chinese political calendar. Among the issues that National Congress members will surely discuss, is the importance of implementing strategies … Continue Reading
By Paul Davies and Michael Green The UK government has announced that it is bringing together a new taskforce led by senior financiers in order to encourage the growth of “green finance”. The taskforce, which will be chaired by Sir Roger Gifford, former lord mayor of London, has six months to develop proposals aimed at … Continue Reading
By Paul Davies and Michael Green The High Level Expert Group on sustainable finance (the Group), which the European Commission (the EC) established, published its interim report on 13 July 2017. The report sets out the key steps required to create a financial system that supports sustainable investment, as well as identifying areas for financial … Continue Reading
By Paul Davies and Aaron Franklin Royal Philips, a health technology company, has recently agreed to an innovative revolving credit facility agreement with a margin linked to the company’s year-on-year sustainability performance improvement. The agreement was entered into by a consortium of 16 international banks (led by ING, as Sustainability Coordinator) and provides for a … Continue Reading
By Paul Davies and Andrew Westgate Climate change has become a key concern for China in recent years, as evidenced by its pledge to reduce carbon emissions per unit of GDP by 60% from 2015 levels by 2030. As we have previously written, it has also become a leader in the emerging field of green … Continue Reading
By Paul Davies and Michael Green The Vice-President of the European Investment Bank, Jonathan Taylor called for “a renewed effort from the world’s financial institutions to make the Paris Agreement a reality” at the COP 22 Conference, held last month in Marrakesh. Green finance will have an instrumental role to play in the transition of … Continue Reading
By Paul Davies and Andrew Westgate Now in its eleventh year, The G20 Summit heads to the city of Hangzhou, China – the first time a G20 summit has been held for heads of state in China. As this years’ destination, China is maximising its role as the host nation to not only highlight its … Continue Reading
