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GC Asia
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Asset owners to attempt daring, immediate emission cuts
One of the boldest initiatives to green the financial system is getting under way this year, as the members of the Net Zero Asset Owner Alliance begin a drive to reduce the greenhouse gas emissions of entities they invest in by between 16% and 29% in the next five years.
15 Jan 2021 -
Passive investors join green debt caravan
Passive investors are expected to become a bigger force in environmental, social and governance debt investing this year, as index providers and asset managers expand the range of products that apply ESG criteria to bonds.
14 Jan 2021 -
ING banker to lead SGX’s sustainability efforts
Senior ING banker Herry Cho is moving to the Singapore Exchange to take on a newly created position as head of sustainability and sustainable finance.
13 Jan 2021 -
Investor activism: three kinds of impact
Big firms like HSBC, BlackRock and JP Morgan are always being criticised for environmental, social and governance failings. The remedy lies in their hands.
12 Jan 2021 -
Kartesia appoints full time head of CSR, ESG
Specialist private lender Kartesia has appointed a full time head of corporate social responsibility and environmental, social and governance issues.
12 Jan 2021 -
Brazil’s indigenous people to Fink: stop financing Amazon destruction
The Association of Brazil’s Indigenous Peoples has written an open letter to BlackRock’s CEO Larry Fink, who is expected to publish his annual letter to stakeholders this week. Apib wants BlackRock to end what it calls its “complicity” in the destruction of the Amazon rainforest, and to consult indigenous people as it finalises its new policy on biodiversity and deforestation.
12 Jan 2021 -
Debt woes continue at Yongcheng Coal
Yongcheng Coal and Electricity Group’s debt woes have continued into the New Year. The company has warned about a missed payment on yet another domestic bond, and more institutions involved in its bond issuance have been criticised by a Chinese regulator.
12 Jan 2021 -
Blue Senate committee raises risks for ABS lenders
A blue Senate is posing a new threat to the ABS market, as regulators and lawmakers are set to turn their focus to consumer protection. Sherrod Brown, a critic of big banks and a loud consumer rights advocate, is now favourite to chair the Senate Committee on Banking, Housing and Urban Affairs, which could lead to a stream of headline risks for lenders.
11 Jan 2021 -
Shareholders hit HSBC with fossil fuel motion
Shareholders in HSBC have filed a motion calling on it to live up to its reputation for sustainable finance by setting targets to reduce fossil fuel financing — an area where investors argue HSBC lags behind some of its rivals.
10 Jan 2021 -
New World builds Asia’s first sustainability-linked bond
Hong Kong-based property developer New World Development Co (NWD) opened a new area of issuance for Asian borrowers on Thursday when it sold the region's first dollar sustainability-linked bond.
08 Jan 2021 -
Wall Street must speak earlier to defend democracy
Leading US financial institutions were quick to condemn the shocking attacks on the US Capitol on Wednesday — a sign that they are willing to take positions on important social issues, in line with the industry’s eagerness to align with good environmental, social and governance standards.
07 Jan 2021 -
Banks, investors turn a blind eye to SBI's Carmichael link
State Bank of India successfully raised $600m with a bond issue underwritten by leading investment banks on Wednesday, just weeks after big investors divested from its green bonds because of its apparent intention to finance the controversial Carmichael coal mine being developed in Australia.
06 Jan 2021 -
Biden and climate: four short cuts to a greener US
The world is watching full of hope as Joe Biden prepares to take the helm of the world’s most important economy. He has promised to act decisively on climate change, which must include financial reform. There is much worthy work to do — but four things would save Biden a lot of time.
23 Dec 2020 -
Short sellers: the new anti-heroes of ethical investment?
In early July, a cub reporter who had only left university the year before filed a story that would cause UK fast fashion company Boohoo’s share price to tumble.
18 Dec 2020 -
Red states, blue states, green States?
After four years of the US government noisily refusing to protect humanity from climate change and pushing back on responsible investing, sustainable finance supporters are full of hope that Joe Biden’s presidency will shift the US — and the world — in the right direction. Jon Hay reports
17 Dec 2020 -
Wynn Macau scores $750m from tap
Gaming company Wynn Macau benefitted from a revival in sentiment around the casino industry for its bond return on Tuesday. It raised $750m from a tap of its 5.625% 2028 notes.
16 Dec 2020 -
Adani business docks for maiden dollar bond
Adani International Container Terminal Private (AICTPL), part of India's Adani Group, sold its inaugural dollar bond on Monday. It raised $300m after receiving orders worth $2.85bn.
15 Dec 2020 -
Gas pipeline groups ‘under-report emissions’
European gas pipeline companies such as Snam and National Grid have succeeded in presenting themselves as environmentally progressive partly by not reporting the largest part of their carbon dioxide emissions, according to a report published this week. Meanwhile, different parts of the energy industry are competing for political support and capital, as Europe strives to cut its greenhouse gas emissions 55% by 2030.
14 Dec 2020 -
Mark Carney, the last crisis, Scotch Eggs
This week in Keeping Tabs: the former governor of the Bank of England on value and values, The New Republic on law and value, reminiscing about the last crisis, and a pub snack en vogue.
11 Dec 2020 -
European Parliament agrees securitization deal with added sustainability criteria
The European Parliament and Council have agreed rules that will set the stage for securitization to play a role in helping European banks dig their way out of an impending surge in defaulted loans. The Parliament has added sustainability criteria to the final amendments.
11 Dec 2020 -
Taxonomy in trouble
The sustainable finance market clamoured for a Taxonomy to tell it what was green. Now it’s here, many are finding the answers constraining or simplistic. Alarmingly, the Taxonomy is also perpetuating the very thing it was supposed to root out — greenwashing.
08 Dec 2020 -
EU ignores science and puts damaging biofuels into Taxonomy
The European Union’s Taxonomy of Sustainable Economic Activities, the cornerstone of its action on sustainable finance, looks set to bless several technologies such as biofuels and hydroelectric power that are not just environmentally questionable but actively harmful, as a result of lobbying by vested interests.
04 Dec 2020 -
Flutter Entertainment funds FanDuel buyout with £1.1bn share sale
Flutter Entertainment, the parent of bookies Paddy Power and Betfair, has returned to the equity capital markets with a £1.1bn share sale to finance its acquisition of a stake in FanDuel Group, the New York-based fantasy sports and online casino company.
04 Dec 2020 -
BlackRock, Vanguard block climate motions
Three of the biggest asset managers, BlackRock, Vanguard and State Street, are still voting against most shareholder motions on climate change, human rights and other sustainability issues, despite their insistence that they take environmental and social matters seriously. Often their ‘no’ votes are decisive in blocking resolutions — even though most are only asking for better disclosure.
03 Dec 2020 -
Bond investors start grilling EM sovereign issuers on ESG
Government debt management offices are facing a new experience: bond investors enquiring about their countries’ environmental, social and governance attributes.
03 Dec 2020 -
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Newmarket CIO spies $200tr private debt win
Institutional investors are on the verge of a huge opportunity in private debt, as assets migrate out of the banking system, according to Thierry Adant, who joined Newmarket Capital this week as its chief investment officer.
02 Dec 2020 -
ESG, Libor shift to accelerate despite govt split
With Joe Biden as president, and a split Congress, the prospect of sweeping progressive change and a comprehensive stimulus package has been dampened. However, the market expects to see substantial progress on the environmental, social and governance (ESG) front and Libor transition, despite the deep divide in government.
01 Dec 2020 -
Sweden’s QE to see green
The Riksbank, Sweden’s central bank, is adding a “negative screening” process to its purchases of corporate bonds under its quantitative easing programme, meaning it will no longer buy the bonds of the most polluting companies.
30 Nov 2020 -
Jumble of ESG standards groups begins to clear as two merge
The first move has been made to consolidate the alphabet soup of industry bodies that try to raise standards in corporate reporting on environmental, social and governance issues — an essential feedstock for responsible investing. More mergers are likely as the private sector races to strengthen its influence before regulators take control.
26 Nov 2020 -
Impact investing trust launches London IPO
Schroders, the UK asset management company, has partnered with Big Society Capital to seek to list a new fund on the London Stock Exchange to invest in assets which have a positive social impact on the UK.
23 Nov 2020 -
ISS and Deutsche Börse: unlikely bedfellows?
In the US, stock exchanges have clashed with proxy advisers. Now, those exchanges' German peer Deutsche Börse has bought a majority stake in one of the major advisers, ISS — but says it will ensure the latter's independence.
19 Nov 2020 -
Market pushes back on ‘rushed’ ESG criteria for securitization
The securitization market is pushing back against proposals in the European Parliament to tack a green framework for ABS deals onto existing discussions about NPL and synthetic securitizations that were supposed to be rapid-fire amendments to help the market fight off Covid-induced economic woes. Tom Brown reports.
19 Nov 2020 -
New bid to solve bank carbon footprint enigma
An accounting standard was launched on Wednesday that could prove a major step forward in how banks and investors calculate their contributions to climate change, and their progress towards net zero emissions.
19 Nov 2020 -
Aramco impresses investors with $8bn multi-tranche bond
The world's largest oil company, Saudi Aramco, on Tuesday raised an $8bn multi-tranche bond, featuring a rare 50 year piece, in only its second entry into debt capital markets. Proceeds from the deal will help it to generate enough cash to fund a dividend of $75bn as oil prices remain under pressure.
18 Nov 2020 -
Deutsche Börse advances in ESG with ISS buy
Deutsche Börse has beefed up its offering in sustainable finance and corporate governance services through purchasing a majority stake in ISS, the ESG data and analytics provider.
18 Nov 2020 -
Aramco 50 year among Gulf trio 'leading charge' in EM bonds
A flurry of Gulf issuers was on track on Tuesday to securing last minute bond funding, as investor appetite appeared insatiable for emerging market debt amid a rally that may well be curtailed by the impending US Thanksgiving holiday.
17 Nov 2020 -
Saudi Aramco targets rare 50 year tranche in cash grab
Saudi Aramco, which made its debut in bond markets last year, has mandated banks to arrange a dollar offering, including a 50 year tranche — a maturity only issued once before by a Gulf borrower. According to market players, this is an opportunistic move to grab cash before year-end taking advantage of yield-hungry investors.
16 Nov 2020 -
Corporate disclosure shouldn’t be outsourced to stock markets
UK chancellor Rishi Sunak’s announcement that large UK companies, whether listed or private, would need to make climate-related disclosures, was a step towards an important principle — that corporate transparency is a public good, and should be driven by governments, not listing authorities.
10 Nov 2020 -
ECB slashes carbon-heavy corporate bond buying in October but no trend yet
The European Central Bank cut in October the share of corporate bonds it bought that have lower ESG ratings, according to analysis from ABN Amro, leading some bankers to predict less technical support to come for parts of the corporate bond market.
10 Nov 2020 -
Ex-Ares trio launch CLO management business
A trio of former Ares Management executives have launched a CLO management business with a particular focus on environmental, social and governance (ESG) investments.
09 Nov 2020 -
MPs lobby for UK to legislate that investors should consider ESG impact
A group of the UK’s members of parliament has welcomed a model bill on responsible investing, which would encourage pension funds to accept responsibility for the impact their portfolios have on the environment and society.
05 Nov 2020 -
Deforestation finance: only a total stop will do
It’s a pity the irreversible damage to our world’s lungs through the wanton destruction of its rainforests does not come with the same stark health warning found on a packet of cigarettes. If it did, the world’s largest banks and asset managers might be shamed into giving up their dirty habit.
03 Nov 2020 -
DMOs turn to ESG, the Dutch turn to market finance
This week in Keeping Tabs: the role of debt management offices in green policy, and an update on EU countries' use of capital markets.
30 Oct 2020 -
BlackRock, JP Morgan, Citi finance firms risking Amazon destruction
Outrage at the destruction of the Amazon rainforest — which often involves dispossessing indigenous people — is common among capital markets executives. But few realise that their own firms are financing it.
29 Oct 2020 -
Guest view: The ECB can axe Alberta bonds’ repo eligibility
GlobalCapital has argued that it is not the ECB’s job to exclude individual borrowers’ bonds from its list of repo-eligible securities on environmental grounds, in response to our call for the Province of Alberta’s debt to be removed from its list of eligible marketable assets (EMA). We maintain that the ECB has plenty of justification to exclude this borrower.
28 Oct 2020 -
China lays groundwork for more climate financing, investment
China’s ecological and financial regulators have jointly published guidelines around climate change-related financing and investment.
28 Oct 2020 -
Biodiversity league table: even best banks lack basic controls
The threat to biodiversity is moving up the agenda of financial markets, but banks are woefully unprepared, a new study has found — in fact, they are actively financing what scientists believe is a mass extinction of species.
28 Oct 2020 -
ECB can't pick and choose, even for the environment
An ESG think tank believes that the European Central Bank should drop Alberta’s euro bonds from its list of eligible marketable assets, as a punishment for its support for polluting industries. But while it is a laudable aim, it is not practicable.
27 Oct 2020 -
Science-based targets could help banks wrestling with climate risk
UK banks and building societies are struggling with difficult aspects of incorporating climate change into their risk management, as demanded by the regulator, a PwC survey has found. The answer to some of their problems could be a non-risk initiative: science-based targets.
22 Oct 2020 -
Banks: net zero in 2050 is not enough
One by one, banks are taking responsibility to help fight climate change, by setting targets to eliminate carbon emissions from their whole financing portfolios by 2050. This will not suffice. Banks must learn a new way of interacting with clients.
21 Oct 2020
