GSS+ Bonds, Ethereum, SGX and MAS, Deforestation Risk, and Dilbert
Here are 5 ESG insights you might have missed this week:
1. New Social & Sustainability Bond Database-
Climate Bonds Initiative enhanced screening capabilities for full GSS+ markets.
Climate Bonds is expanding its data analysis capabilities with the launch of a Social and Sustainability Bond Database (SnS DB), in keeping with the diversifying labelled bond market. The new database will complement the existing Climate Bonds Green Bonds Database, an internationally authoritative source of best practice green debt product data.
Social and sustainable debt markets emerged with real momentum in 2020 during the pandemic, as governments scrambled to raise finance to fight the immediate socioeconomic impacts of Covid-19. By the end of 2021, our Sustainable Debt Global State of the Market 2021 reported a cumulative total of issuance of USD520.5bn sustainability bonds and of USD538.8bn in social bonds, giving a combined total not far behind the USD 1.6tn green market.
2. Private Equity's 'Dirty Energy' Bets Persist Despite ESG Promises-
Some of the largest private equity firms are exposing investors to significant climate risks through fossil-fuel heavy portfolios that go unnoticed by regulators, a new report concludes.
A new study by the Private Equity Stakeholder Project, or PESP, and Americans for Financial Reform Education Fund, known as AFREF, found that Carlyle was the worst offender among eight buyout firms, which include Warburg Pincus, KKR, Ares Management, Apollo Global Management, TPG, and the tie-up of Brookfield Asset Management and Oaktree Capital Management. The report’s findings are based on an analysis of portfolios, green energy transition plans, and political and climate lobbying transparency.
TPG come out on top, landing a B grade because of its smaller number of fossil fuel investments. Carlyle received an F – the lowest grade – on the study’s climate credentials scorecard.
Link to Source: https://www.peclimaterisks.org/#scorecard-and-report
3. MAS and Singapore Exchange Launch Sustainability Data Portal-
The joint initiative aims to make ESG data consistent and comparable for investors while facilitating reporting for listed companies.
The Monetary Authority of Singapore (MAS) and the Singapore Exchange (SGX) have started ESGenome, a digital disclosure portal aimed at helping companies report ESG data.
The platform is a SaaS product provided for SGX-listed companies at no cost aiming to streamline data collection, tracking and reporting. Listed companies will be able to take advantage of a simplified disclosure process with a core set of metrics mapped against global standards and frameworks. These include a baseline of 27 core SGX ESG metrics although companies can also choose to make additional disclosures that are in line with globally recognized standards and frameworks based on an additional 3,000 metrics.
4. The World's Second Biggest Cryptocurrency Just Got a Lot Greener-
Ethereum, the world's second most valuable cryptocurrency, has completed a massive software upgrade that its backers claim will slash its carbon footprint.
The long-awaited revamp, which is known as "The Merge," will reduce ethereum's energy consumption by nearly 99.95%. The co-founder said that the upgrade will "reduce worldwide electricity consumption by 0.2%."
Earlier this month, Digiconomist said that the power saved as a result of the upgrade would "likely be equivalent to the electrical energy consumption of a country like Portugal."It could also become the "final nail in the coffin" for bitcoin's transaction mechanism.
5. Deforestation Risks for Banks-
Free online training programme developed as a part of the Good Growth Partnership, by UNEP-FI in collaboration with UNEP-WCMC.
This global training programme has been designed to help the banking community understand how deforestation-risk commodities in their investment portfolios contribute to their overall risk exposure and how to mitigate this exposure through investment in Nature Based Solutions (NbS).
Module 1 introduces the global deforestation issue within the broader sustainability agenda, and why it presents a risk to banks involved in the finance of agricultural commodity production and trade. Module 2 and Module 3 provide participants with more detail on how these deforestation-related risks can be identified, assessed and ultimately managed within a risk management framework, and presents some of the opportunities from supporting sustainable commodity production. Module 4 will focus on how Nature Based Solutions (NbS) can be used to mitigate land use risk.
One more thing: The business comic strip Dilbert covered ESG this week. Have a look!
Do share your comments or the content you think our community should not miss!