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Sustainability Linked Bonds

By Lili Hocke on September 16, 2020What are Sustainability Linked Bonds? Sustainability Linked Bonds (SLB) are a forward-looking performance-based instrument. The Bonds financial or structural characteristics (such as the coupon rate) are adjusted depending on the achievement of pre-defined sustainability targets. The adjustment can be in both directions, e.g. an

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Corporates leverage ESG Peer Performance Insights as a risk management tool

By Shilpi Singh & Nick Warelis on July 17, 2020As the social and economic challenges of 2020 continue to unfold and markets remain in flux, the resilience of Environmental, Social, and Governance (ESG) investing marks a silver lining. In the context of today’s bear market, investors are demonstrating their preference

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Responding to COVID-19 through Social Bonds

By Kevin Ranney on Apr 8, 2020In the space of four months since the first cases of COVID-19 were diagnosed in Wuhan, China, the virus has spread to 178 countries globally. As a consequence, nearly 3 billion people around the world are living with varying degrees of lockdown imposed by

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COVID-19 and Beyond: Using sustainable finance to build social resilience

By Jonathan Laski on Apr 7, 2020As our global community continues to endure an altered way of life amidst the on-going COVID-19 outbreak, it is only natural to ask what each of our lives, professional and otherwise, will look like on the other side.  Once children and teachers go back to

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Aligning Finance and Sustainability: The Role of the Principles for Responsible Banking

By Jonathan LaskiPrinciples of Responsible BankingOn September 22, 2019 in New York, representatives from 130 banks joined dignitaries, including the Secretary-General of the United Nations, to launch what has been called “the most significant mechanism ever jointly created by the UN and the global finance industry” to cultivate a sustainable

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About Green Bond Principles

By SustainlyticsAbout Green Bond PrinciplesThe green bond market aims to enable and mobilize debt markets to fund projects that contribute to environmental sustainability. Green bonds facilitates capital-raising and investments for new and existing projects which have environmental benefits and can mitigate risks associated with climate change. With over 1,500 green

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Generali Green Bond Framework and Second-party opinion

By SustainalyticsGenerali’s Green Bond issuance and second-party opinion Assicurazioni Generali SpA (“Generali” or the “Group”) is a global insurance and financial services company based in Italy. Founded in 1831, Generali now operates in over 60 countries with approximately 71,000 employees and is one of the world’s largest insurance providers by

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Introduction to Sustainability Linked Loans and ESG Ratings

By SustainalyticsIntroduction to Sustainability Linked Loans and ESG RatingsSustainable finance and green lending are on the rise as more borrowers and lenders recognize the potential benefits of green and sustainability-linked loan products for their businesses. According to the Loan Markets Association (LMA), sustainability linked loans are a “dynamic and innovative

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Frequently Asked Questions - European Sustainable Finance Regulations

By Sustainalytics General QuestionsCan you explain the upcoming sustainable finance regulation in Europe as it relates to issuers and investors?In May 2018, The European Commission announced an action plan on sustainable finance, that included four components. In June 2019, the Technical Expert Group (TEG) on Sustainable Finance published reports on each

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Simplifying Sustainable Finance - Green loans vs Green Bonds vs Sustainability Linked loan and more

By Susan Hall Sustainable Finance – The Differences Between Green Bonds, Green Loans And Sustainability Linked LoansInterest in sustainable finance is increasing. At the same time, issuers and lenders are looking for clarity on the various financial instruments available to support their needs. There are several instruments which sound similar but

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ESG Ratings and Sustainability Linked Loans – Insights from the field

By Melissa Chase ESG Ratings and Sustainability Linked Loans In the spring, Sustainalytics launched an Issuer Information Series covering our new ESG Risk Ratings, our company research and feedback process and sustainable finance trends. The third session in our series takes a closer look at how companies can use their ESG

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Navigating Developments in the Sustainable Finance Market

By Melissa Menzies Navigating Developments in the Sustainable Finance MarketOn June 18th, in the heart of London’s financial district, Sustainalytics hosted its inaugural breakfast symposium, Navigating Developments in the Sustainable Finance Market. It was a full house, with over 60 engaged attendees, including Sustainalytics clients, prospects and partner financial institutions. The

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Sustainable Development Goals - Green Financing as a Bridge to the SDGs

By SustainalyticsSustainable Development Goals and Green Financing (Green bonds and Sustainability Bonds)The purpose of green financing, as stated by the UN Environment Programme, is to increase the level of financial flows (from banking, micro-credit, insurance and investment) from the public, private and not-for-profit sectors to sustainable development priorities. The aim

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Demystifying Sustainability Linked Loans: Leverage your ESG Rating

By Shilpi Singh Sustainability Linked Loans – Leverage your ESG RatingWhile investors are increasingly focused on how their investment decisions impact the environment and key stakeholders, forward-looking lenders also have sustainability at the core of their allocation strategies. As a result, the demand for sustainable finance products has increased in recent

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Your Company's ESG Ratings: Understanding Sustainalytics Research Process

By Melissa Chase Understanding Your Company’s ESG RatingsIn September 2018, Sustainalytics announced the launch of its next generation ESG Risk Ratings, which evaluate the degree to which a company’s enterprise value is exposed to material ESG issues. Specifically, they measure a company’s exposure to industry-specific material ESG risks, and how well that

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The Water Scarcity Challenge: Opportunities for Sustainable Solutions

By Melissa Chase Opportunities for Sustainable SolutionsWater may not be a top-of-mind concern for most investors, but it could turn out to be one of the most important investment themes of the 21st century. Market opportunities related to the water industry could reach USD 1 trillion by 2025.[1] As the issues

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Second Party Opinion - Green, Social and Sustainability Bonds

By Melissa Chase Second-Party Opinion – Green Bonds, Social Bonds, Sustainability Bonds Issuers looking to support their sustainability strategy through sustainable finance solutions have several options, from sources of debt to equity instruments. These solutions include Green Loans, Sustainability Linked Loans, Green Bonds, Sustainable Bonds and more. When issuing bonds, issuers

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Most Frequently Asked Questions - Green Bonds

By SustainalyticsMost common Questions for Green bond issuanceWhat are Green Bonds?Green bonds are like any other conventional bonds except that the issuer promises to use the proceeds for green investments, green projects or eligible green assets being refinanced.Who can issue Green Bonds?Any government or business entity who can issue a

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Green, Social and Sustainability Bonds

By Sustainalytics Green, Social and Sustainability Bonds Explained The transition to a sustainable and green economy requires scaling up financing of investments through projects that provide environmental and social benefits. As investors look beyond the traditional financial analysis, the bond market, through Green, Social and Sustainability Bonds, can play an

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Trends in Sustainable Finance for 2019

By Trisha Taneja Sustainable Finance in 2019 In 2019, investors globally continue to be concerned about climate change risks and the transition to a low-carbon economy. As investor awareness around climate risk has grown, so too has the sustainable finance market. Sustainable finance, as defined by experts, is any form of

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Taxonomies and Regulation: Signs of a Maturing Market

By Trisha Taneja on Feb 6, 2019Global regulatory initiatives for sustainable finance will be in the spotlight this year. The European Commission’s regulatory initiatives have been the most prominent. Following on the findings of the High-Level Expert Group on Sustainable Finance (HLEG), the European Commission put together a Technical Expert

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Steps To Issue A Green Bond

By SustainalyticsSteps to issue a Green Bond #01DocumentationCreate a document that details the type of projects to be financed, use of proceeds, management of proceeds and commitment to reporting. This is called a Green BondFramework.Speak With the Experts#02VerificationGet the document verified by experts. This is called External verification or a

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Climate Tops the WEF’s List

By Trisha Taneja on Feb 6, 2019For the third year in a row, climate change has topped the World Economic Forum’s Global Risks Report. Climate change dominates as the risk that is most likely to be realized, and also one that has the highest impact. This WEF report follows on