Sustainability Investing: A Week in Review October 14th, 2024
The past week has seen a flurry of activity in the world of sustainable investing, with new initiatives, partnerships, and regulatory developments shaping the landscape. Here's a roundup of the key developments:
New Sustainable Funds and Products
HSBC and IFC Launch SDG-Focused Emerging Markets Bond Fund: HSBC Asset Management and the International Finance Corporation (IFC) have announced the launch of a new emerging markets sustainable corporate bond fund that focuses on the United Nations Sustainable Development Goals (SDGs). The fund aims to provide investors with exposure to companies that are making a positive impact on the planet and society. https://www.linkedin.com/posts/esg-today_hsbc-ifc-launch-sdg-focused-emerging-markets-activity-7249051971939123201-vzl3Major
Investment Announcements
TPG Rise Climate and GIC Acquire Techem: TPG Rise Climate, a leading climate-focused investment platform, and GIC, Singapore's sovereign wealth fund, have acquired Techem, a global leader in building energy management and decarbonization. The acquisition is expected to accelerate Techem's growth and contribute to the global transition to a low-carbon economy. https://www.esgtoday.com/tpg-rise-climate-gic-acquire-building-decarbonization-and-energy-management-platform-techem-for-7-4-billion/
Regulatory Developments
FCA Publishes Guidance on Greenwashing: The Financial Conduct Authority (FCA) in the UK has published new guidance aimed at preventing greenwashing in the financial services industry. The guidance sets out expectations for firms to ensure that their claims about the sustainability of their products and services are accurate and transparent. https://www.fnlondon.com/articles/fca-imposes-anti-greenwashing-rule-in-esg-crackdown-20231128ESG
Data and Reporting
RepRisk Report Shows Decline in Greenwashing Risk: RepRisk, a leading provider of ESG data and analysis, has published its third annual greenwashing report, which shows a 12% decrease in greenwashing risk globally across all sectors. The report highlights the increasing focus on ESG transparency and accountability among companies and investors. https://www.reprisk.com/research-insights/reports/on-the-rise-navigating-the-wave-of-greenwashing-and-social-washingIndustry
Trends and Analysis
MSCI Launches New Climate Change Indices: MSCI has launched a new suite of climate change indices that measure the carbon footprint of companies and sectors. The indices are designed to help investors assess and manage climate risk in their portfolios. https://www.msci.com/documents/1296102/35124068/ESG+and+Climate+Trends+to+Watch+for+2023.pdf*
Study Finds Link Between ESG Performance and Financial Returns:
A new study by Morningstar has found a strong link between a company's ESG performance and its financial returns. The study analyzed the performance of over 10,000 companies over a 10-year period and found that companies with strong ESG scores outperformed those with weaker scores. https://www.morningstar.com/views/blog/esg/esg-portfolios-returnsEmerging
Trends in Sustainable Investing
Nature-Based Solutions Gain Momentum: There is growing interest in nature-based solutions, such as reforestation and ecosystem restoration, as a way to address climate change and biodiversity loss. Investors are increasingly seeking opportunities to support projects that protect and restore natural ecosystems.
Impact Investing Grows in Popularity:
Impact investing, which focuses on generating both financial returns and a positive social or environmental impact, continues to gain traction. Investors are looking for opportunities to invest in companies and projects that are making a tangible difference in the world.ting: A Week in Review October 14th, 2024
The past week has seen a flurry of activity in the world of sustainable investing, with new initiatives, partnerships, and regulatory developments shaping the landscape. Here's a roundup of the key developments:
New Sustainable Funds and Products
HSBC and IFC Launch SDG-Focused Emerging Markets Bond Fund: HSBC Asset Management and the International Finance Corporation (IFC) have announced the launch of a new emerging markets sustainable corporate bond fund that focuses on the United Nations Sustainable Development Goals (SDGs). The fund aims to provide investors with exposure to companies that are making a positive impact on the planet and society. https://www.linkedin.com/posts/esg-today_hsbc-ifc-launch-sdg-focused-emerging-markets-activity-7249051971939123201-vzl3Major
Investment Announcements
TPG Rise Climate and GIC Acquire Techem: TPG Rise Climate, a leading climate-focused investment platform, and GIC, Singapore's sovereign wealth fund, have acquired Techem, a global leader in building energy management and decarbonization. The acquisition is expected to accelerate Techem's growth and contribute to the global transition to a low-carbon economy. https://www.esgtoday.com/tpg-rise-climate-gic-acquire-building-decarbonization-and-energy-management-platform-techem-for-7-4-billion/
Regulatory Developments
FCA Publishes Guidance on Greenwashing: The Financial Conduct Authority (FCA) in the UK has published new guidance aimed at preventing greenwashing in the financial services industry. The guidance sets out expectations for firms to ensure that their claims about the sustainability of their products and services are accurate and transparent. https://www.fnlondon.com/articles/fca-imposes-anti-greenwashing-rule-in-esg-crackdown-20231128ESG
Data and Reporting
RepRisk Report Shows Decline in Greenwashing Risk: RepRisk, a leading provider of ESG data and analysis, has published its third annual greenwashing report, which shows a 12% decrease in greenwashing risk globally across all sectors. The report highlights the increasing focus on ESG transparency and accountability among companies and investors. https://www.reprisk.com/research-insights/reports/on-the-rise-navigating-the-wave-of-greenwashing-and-social-washingIndustry
Trends and Analysis
MSCI Launches New Climate Change Indices: MSCI has launched a new suite of climate change indices that measure the carbon footprint of companies and sectors. The indices are designed to help investors assess and manage climate risk in their portfolios. https://www.msci.com/documents/1296102/35124068/ESG+and+Climate+Trends+to+Watch+for+2023.pdf*
Study Finds Link Between ESG Performance and Financial Returns:
A new study by Morningstar has found a strong link between a company's ESG performance and its financial returns. The study analyzed the performance of over 10,000 companies over a 10-year period and found that companies with strong ESG scores outperformed those with weaker scores. https://www.morningstar.com/views/blog/esg/esg-portfolios-returnsEmerging
Trends in Sustainable Investing
Nature-Based Solutions Gain Momentum: There is growing interest in nature-based solutions, such as reforestation and ecosystem restoration, as a way to address climate change and biodiversity loss. Investors are increasingly seeking opportunities to support projects that protect and restore natural ecosystems.
Impact Investing Grows in Popularity:
Impact investing, which focuses on generating both financial returns and a positive social or environmental impact, continues to gain traction. Investors are looking for opportunities to invest in companies and projects that are making a tangible difference in the world.
Conclusion
The past week has been marked by significant developments in the world of sustainable investing. From new fund launches and regulatory initiatives to advancements in ESG data and reporting, the momentum behind sustainable investing continues to gather pace. As the global focus on environmental, social, and governance (ESG) issues intensifies, we can expect to see even more innovation and growth in this sector in the coming months and years.
