Maitland/AMO Sustain Monitor – 14 January 2022

14th January 2022

According to new data gathered by BloombergNEF, the loan market centred around sustainability grew by four times in 2021 alone. The BNEF report illustrates how financing and loans for sustainability projects in 2021 hit a record of USD4 trillion, of which USD400 billion was issued to support community-based green objects.

 

The public interest in ESG concerns has compelled corporations worldwide to take a more robust approach to financing their sustainable transitions. With more businesses and countries signing on to net-zero targets, fixed income solutions have rapidly been pivoted towards specific projects that address green objectives.

 

With more than USD620 billion in green bonds issued in 2021, this trend will likely accelerate in 2022, especially following the introduction of regulation including the EU taxonomy.

 

If you’d like to hear more about Maitland/AMO Sustain and our bespoke sustainability offering, please contact sustain@maitland.co.uk

 


Top sustainability stories this week..

RECORD YEAR: 2021 saw the global bonds market hit a record $210bn of total global green bonds issuance. Data from the Climate Bonds Initiative showed that the largest share of proceeds from climate bonds certifications went towards low carbon transport projects at 39% last year.

NEW CONSULTATION: The World Benchmarking Alliance has opened a consultation on its draft methodology for the upcoming Nature and Biodiversity Benchmark. Part of this includes a proposal to assess whether businesses link executive pay to biodiversity targets.

THE PURPOSE OF MAYONNAISE: Fundsmith CEO, Terry Smith, has criticised Unilever in his recent annual letter to investors. Smith accused management of prioritising sustainability credentials at the expense of running the business saying: “A company which feels it has to define the purpose of Hellman’s mayonnaise has in our view clearly lost the plot”.

CARBON OFFSET OUTLOOK: In BloombergNEF’s recent Long-Term Carbon Offset Outlook 2022 report, it suggests that carbon offset prices could reach as high as $120 a ton by the mid-century or as low as $47 a ton. The high price prediction comes as demand is expected to soar between now and 2050 as businesses look to deliver their net-zero targets.

SUSTAINABILITY DISCLOSURE CONCERNS: Block chain platform Cardano has welcomed the introduction of sustainability disclosures and believes this to be a milestone for the FCA. However, it has also acknowledged shortcomings with this new labelling system, with there being a risk of labelling a company as “already low carbon” rather than considering the quality of their decarbonisation strategies.

GOODBYE POLLUTERS: Edelman is considering breaking ties with some of its clients who are not complying with the Paris Accords or Net-Zero goals.

VITAL BUT COMPLICATED: The Net-Zero Company Benchmark conceived by Climate Action 100+ is expected to become a paramount instrument in net-zero benchmarking. However, it is currently considered to be too detailed oriented, which creates complications as critical indicators do not stand out.

FUNDS FOR HIGHEST BENCHMARKS: BlackRock has announced two new funds devised to the EU’s highest criterion for sustainability. Climate Action Multi-Asset Fund and Climate Action Equity Fund will follow the Article 9 label within Europe’s ESG investing principles that puts sustainability as the forefront concern.

COMMITTING TO RENEWABLES: Blackstone has announced it has invested $3bn in Invenergy, one of the most significant renewable investments in North American history. Caisse de dépôt et placement du Québec (CDPQ) and Invenergy will remain the company’s majority owners with Blackstone’s capital boosting the creation of Invenergy’s clean energy platform.