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Listen "What’s Happening in Sustainable Finance: The Nuance of ESG Ratings, the Impact of Climate Change on Sport, and “Code Red” for Humanity"
Episode Synopsis
Episode Summary
Hosts
Nicholas Gandolfo, Director, Corporate Solutions
Marika Stocker, Senior Manager, Corporate Solutions
In this episode, Nick and Marika discuss recent developments in sustainable finance that have caught their eye. The diverse topics covered range from the growing momentum behind sustainability-linked bonds to the Tokyo Olympics’ focus on sustainability to the latest report from IPCC. They also note the continued growth of sustainable finance globally due to more issuers, markets, products, and diversification.
Climate Change Considerations for Global Sporting Events
With the summer Olympics behind us and the winter games only a few months away, Nick and Marika discuss the climate frameworks being developed by the International Olympic Committee and other global sporting organizations. These groups are considering the future impact of climate change on global sporting events and vice versa. The frameworks will address issues such as scope 3 emissions due to travel and transport and the effects of changing weather patterns on the locations for future events and athletes’ safety.
The Nuanced and Multidimensional Nature of ESG Ratings
In response to a recent article criticizing the use of ESG scores in credit analysis, Nick touches on the nuances of ESG ratings and how they are used. He cites the multidimensional nature of ESG ratings, noting that some of Sustainalytics’ clients don’t use the top-level ESG Risk Rating score, but rather use aspects of the data to inform their models and investment approach.
Earth Overshoot Day and IPCC's "Code Red" for Humanity
Two interesting and important sets of research are also highlighted. The first is Earth Overshoot Day, which fell on July 29 this year. This marks the date when the human population’s demand for ecological resources outstrips what the Earth can generate in that year. Unfortunately, the date continues to creep closer and closer to the start of the year.
The second is the Intergovernmental Panel on Climate Change’s (IPCC) sixth assessment report. Climate Change 2021: The Physical Science Basis analyzes global climate science research and warns that some of the key effects of climate change, such as rising sea levels, may be irreversible for thousands of years. This work on the current state of the global climate system and the effects of climate change will make for a sobering read ahead of the COP26 conference in Glasgow at the end of October.
Key Moments
00:00:09
Introduction
00:01:18
Market overview
00:03:11
EMIA's enhanced principles for labeled bonds
00:03:58
IOC climate framework
00:05:23
Earth Overshoot Day
00:06:07
Blockchain and green finance
00:06:42
ESG score's place in credit ratings
00:07:49
IPCC climate report
00:09:25
Carbon offsets vs targets
00:11:06
Green bonds overview
00:16:21
Social and sustainability bonds overview
00:18:12
Green loans overview
00:19:49
SLB overview
00:23:23
Audience questions
00:27:27
SLL overview
00:31:29
Labelled products
00:32:33
Transition bonds overview
00:33:28
Regulatory developments
Links to Select Resources
South China Morning Post: What is Driving an Almost 200 Per Cent Growth in Sustainability-linked Debt Financing
Environmental Finance: EMIA Releases 'Enhanced' Principles for Labelled Bonds
Earth Overshoot Day
Ledger Insights: BIS, HKMA to Explore Tokenizing Green Bonds, Including Public Blockchain
Environmental Finance: 'Blunt' ESG Scores Have 'No Place' in Credit Rating Process, Says KBRA
IPCC: Climate Change 2021: The Physical Science Basis
Environmental Finance: Initiative Launches to Build 'Integrity' in Voluntary Carbon Markets
GlobalCapital: Deutsche Bank Debuts Green Label in Formosa Format
The Economic Times: Axis Bank to Now Raise up to $1 Billion Via Overseas AT1 Issue
Bloomberg Green: JPMorgan Plots Derivatives Path Into New Era of ESG Finance
Hellenic Shipping News: NYK Issues First Transition Bonds in Japan
Bloomberg: China Firms Shy Away From ESG Loans Holding Them to Account
Sustainalytics SPOs:
Scotiabank Sustainable Bond Framework Second-Party Opinion
Concordia Financial Group, Ltd. Green Bond Second-Party Opinion
Allied Properties REIT Green Financing Framework
Hysan Sustainable Finance Framework Second-Party Opinion
Baidu, Inc. Sustainable Finance Framework Second-Party Opinion
More Episodes
Hosts
Nicholas Gandolfo, Director, Corporate Solutions
Marika Stocker, Senior Manager, Corporate Solutions
In this episode, Nick and Marika discuss recent developments in sustainable finance that have caught their eye. The diverse topics covered range from the growing momentum behind sustainability-linked bonds to the Tokyo Olympics’ focus on sustainability to the latest report from IPCC. They also note the continued growth of sustainable finance globally due to more issuers, markets, products, and diversification.
Climate Change Considerations for Global Sporting Events
With the summer Olympics behind us and the winter games only a few months away, Nick and Marika discuss the climate frameworks being developed by the International Olympic Committee and other global sporting organizations. These groups are considering the future impact of climate change on global sporting events and vice versa. The frameworks will address issues such as scope 3 emissions due to travel and transport and the effects of changing weather patterns on the locations for future events and athletes’ safety.
The Nuanced and Multidimensional Nature of ESG Ratings
In response to a recent article criticizing the use of ESG scores in credit analysis, Nick touches on the nuances of ESG ratings and how they are used. He cites the multidimensional nature of ESG ratings, noting that some of Sustainalytics’ clients don’t use the top-level ESG Risk Rating score, but rather use aspects of the data to inform their models and investment approach.
Earth Overshoot Day and IPCC's "Code Red" for Humanity
Two interesting and important sets of research are also highlighted. The first is Earth Overshoot Day, which fell on July 29 this year. This marks the date when the human population’s demand for ecological resources outstrips what the Earth can generate in that year. Unfortunately, the date continues to creep closer and closer to the start of the year.
The second is the Intergovernmental Panel on Climate Change’s (IPCC) sixth assessment report. Climate Change 2021: The Physical Science Basis analyzes global climate science research and warns that some of the key effects of climate change, such as rising sea levels, may be irreversible for thousands of years. This work on the current state of the global climate system and the effects of climate change will make for a sobering read ahead of the COP26 conference in Glasgow at the end of October.
Key Moments
00:00:09
Introduction
00:01:18
Market overview
00:03:11
EMIA's enhanced principles for labeled bonds
00:03:58
IOC climate framework
00:05:23
Earth Overshoot Day
00:06:07
Blockchain and green finance
00:06:42
ESG score's place in credit ratings
00:07:49
IPCC climate report
00:09:25
Carbon offsets vs targets
00:11:06
Green bonds overview
00:16:21
Social and sustainability bonds overview
00:18:12
Green loans overview
00:19:49
SLB overview
00:23:23
Audience questions
00:27:27
SLL overview
00:31:29
Labelled products
00:32:33
Transition bonds overview
00:33:28
Regulatory developments
Links to Select Resources
South China Morning Post: What is Driving an Almost 200 Per Cent Growth in Sustainability-linked Debt Financing
Environmental Finance: EMIA Releases 'Enhanced' Principles for Labelled Bonds
Earth Overshoot Day
Ledger Insights: BIS, HKMA to Explore Tokenizing Green Bonds, Including Public Blockchain
Environmental Finance: 'Blunt' ESG Scores Have 'No Place' in Credit Rating Process, Says KBRA
IPCC: Climate Change 2021: The Physical Science Basis
Environmental Finance: Initiative Launches to Build 'Integrity' in Voluntary Carbon Markets
GlobalCapital: Deutsche Bank Debuts Green Label in Formosa Format
The Economic Times: Axis Bank to Now Raise up to $1 Billion Via Overseas AT1 Issue
Bloomberg Green: JPMorgan Plots Derivatives Path Into New Era of ESG Finance
Hellenic Shipping News: NYK Issues First Transition Bonds in Japan
Bloomberg: China Firms Shy Away From ESG Loans Holding Them to Account
Sustainalytics SPOs:
Scotiabank Sustainable Bond Framework Second-Party Opinion
Concordia Financial Group, Ltd. Green Bond Second-Party Opinion
Allied Properties REIT Green Financing Framework
Hysan Sustainable Finance Framework Second-Party Opinion
Baidu, Inc. Sustainable Finance Framework Second-Party Opinion
More Episodes
More episodes of the podcast ESG in Conversation
ESG in Conversation: Financing the Future
29/04/2025
ESG in Conversation: A Look Back at 2024
20/11/2024
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