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Episode Summary
Hosts
- Nicholas Gandolfo, Director, Corporate Solutions
- Aditi Bhatia, Regional Sales Manager, Corporate Solutions
In this episode, hosts Nick and Aditi discuss notable trends and deals in sustainable finance – from rapid market growth, to increasing diversification of products, new taxonomies, sovereign green bonds and sustainability-linked bonds, impact accounting and reporting, and much more. Nick also tackles audience questions, offering some valuable insight on group frameworks and Sustainalytics’ approach to supporting transition finance.
Rapid Growth in Sustainable Finance
2021 saw incredible growth in sustainable finance and ESG assets under management (AUM) are projected to reach US$50 trillion by 2025 and make up one-third of global AUM. Sustainable bonds already made up 10% of global debt issued in 2021, with US$1 trillion issued for the first time and a 40% increase over 2020. And 2022 is showing no signs of slowing down, with a hot start to the year and good momentum looking forward.
World Economic Fund Risk Report 2022
Of the WEF’s top ten global risks by severity, five are environmental issues and the top three directly relate to climate change. View the report here. It’s no surprise that this theme is carried forward from the previous risk report, but it highlights the continued importance of funding for projects that address climate risk.
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Key Moments
01:48 | Market news |
02:17 | Hot start to the year: looking for $1tn ESG investment in 2022 |
03:31 | Big year for taxonomies? ASEAN, Korea, Indonesia, plus EU changes |
04:05 | WEF Risk Report: top risks climate-related |
05:10 | ESG risk ratings scrutiny on usefulness and robustness |
05:45 | Fashion industry decarbonization and scope 3 emissions |
06:20 | Impact accounting |
07:15 | Nuclear, gas, and the EU Taxonomy |
07:52 | John Holland Sustainability-Linked Bank Guarantee (Australia) |
08:32 | COVID recovery and Build Back Better |
09:02 | Climate Bonds Initiative report: Thailand infrastructure |
09:25 | World Bank report: sovereign SLB KPIs |
09:51 | IEA report: digitization as enabler for transition |
10:20 | Environmental Finance report: Green Bond Impact Reporting |
11:25 | Green bonds overview |
16:15 | Green loans overview |
18:10 | SLBs overview |
24:20 | Audience questions |
29:15 | SLLs overview |
32:30 | Labeled products overview |
33:28 | Transition finance overview |
Links to Select Resources
- Banking Exchange: Global ESG Assets to Hit $50 Trillion by 2025
- Asian Investor: Sustainable Finance Bonds Make Up 10% Of Global Debt Issued in 2021
- World Economic Fund: Global Risks Report 2022
- Morningstar: ESG Ratings Are Bottom-Line Focused, but Have Broader Impacts
- Environmental Finance: Impact Accounting Bodies Launch Survey Of Existing Approaches
- Climate Bonds Initiative: Keeping the Momentum: China Introduces Innovative Labels Into Domestic Market
- Environmental Finance: Impact report quality deters green bond fund investors
- Bloomberg: Global Issuers Land in Canada as Nation’s Banks Fund Abroad
- Sustainalytics SPOs:
- Danske Bank Group Green Bond Framework
- Banco do Brasil Sustainable Finance Framework
- FONPLATA Sustainable Debt Framework
- Northland Power Green Financing Framework
- Sumitomo Mitsui Banking Corporation's Green Bond Framework
- ICG Sustainability-Linked Bond Framework
- Cellnex Sustainability-Linked Financing Framework
- Coca-Cola İçecek A.Ş. Sustainability-Linked Bond Framework
- The Central America Bottling Corporation Sustainability-Linked Financing Framework
- Danske Bank Group Green Bond Framework
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