Responsible Investing

  • Asset owners to attempt daring, immediate emission cuts

    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.

  • Passive investors join green debt caravan

    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.

  • Investor activism: three kinds of impact

    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.

  • Brazil’s indigenous people to Fink: stop financing Amazon destruction

    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.

  • Debt woes continue at Yongcheng Coal

    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.

  • Blue Senate committee raises risks for ABS lenders

    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.

  • Shareholders hit HSBC with fossil fuel motion

    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.

  • Wall Street must speak earlier to defend democracy

    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.

  • Banks, investors turn a blind eye to SBI's Carmichael link

    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.

  • Biden and climate: four short cuts to a greener US

    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.

  • 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

  • Wynn Macau scores $750m from tap

    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.

  • Adani business docks for maiden dollar bond

    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.

  • Gas pipeline groups ‘under-report emissions’

    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.

  • Mark Carney, the last crisis, Scotch Eggs

    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.

  • Taxonomy in trouble

    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.

  • EU ignores science and puts damaging biofuels into Taxonomy

    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.

  • Flutter Entertainment funds FanDuel buyout with £1.1bn share sale

    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.

  • BlackRock, Vanguard block climate motions

    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.

  • Newmarket CIO spies $200tr private debt win

    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.

  • ESG, Libor shift to accelerate despite govt split

    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.

  • Sweden’s QE to see green

    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.

  • Jumble of ESG standards groups begins to clear as two merge

    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.

  • Impact investing trust launches London IPO

    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.

  • ISS and Deutsche Börse: unlikely bedfellows?

    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.

  • Market pushes back on ‘rushed’ ESG criteria for securitization

    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.

  • New bid to solve bank carbon footprint enigma

    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.

  • Aramco impresses investors with $8bn multi-tranche bond

    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.

  • Deutsche Börse advances in ESG with ISS buy

    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.

  • Aramco 50 year among Gulf trio 'leading charge' in EM bonds

    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.

  • Saudi Aramco targets rare 50 year tranche in cash grab

    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.

  • Corporate disclosure shouldn’t be outsourced to stock markets

    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.

  • Ex-Ares trio launch CLO management business

    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.

  • Deforestation finance: only a total stop will do

    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.

  • Guest view: The ECB can axe Alberta bonds’ repo eligibility

    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.

  • ECB can't pick and choose, even for the environment

    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.

  • Science-based targets could help banks wrestling with climate risk

    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.

  • Banks: net zero in 2050 is not enough

    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.