Call for expert contribution

UNEP FI and PRI work together to start a discussion and provide information on how investment banking activities can be steered towards better incorporation of sustainability considerations.
As intermediaries in primary financial markets, investment banks play an important role in the financial system by underwriting the issuance of securities, facilitating financial transactions, advising on mergers and acquisitions and providing research. As a result, they can have a significant influence on integrating sustainability in the financial system. However, there is little information about the progress investment banks made towards integrating sustainability issues in their activities and services.
While there is a multitude of sustainability frameworks and principles available to banks and investors, they do not seem to be widely applied in investment banking activities. In addition, there are no industry-specific frameworks or guidelines on how to consider sustainability issues in investment banking and how investment banking can support achieving sustainability goals. While this could be due to the specific nature of certain investment banking activities, for instance where the assets involved are not reflected on a balance sheet, we believe it is important to start a discussion on how investment banks could support the transition to a sustainable financial system.
In order to incorporate various views and expertise in this work, we invite experts to participate in the process of the thought piece development. This will be done through the personal interviews to take place in July-August 2022.
Please contact me at elena.koritchenko@un.org to learn more details.

Targeted legislative tweaks can help contain the harm of debt crises

Today, the right to a second chance is enshrined in the corporate bankruptcy laws of most leading economies. Yet the same indulgence is denied to governments—with predictably grave consequences for the poorest citizens of the poorest countries.

Company net-zero targets at risk without immediate improvement on deforestation

New analysis released today commissioned by the UN-backed Race to Zero – in partnership with Global Canopy, Science Based Targets initiative and the Accountability Framework Initiative – highlights the urgent need for increased action on supply chain tropical deforestation in the industry, as a critical part of the global effort to reach net-zero by 2050 and achieve a “nature-positive” economy as set out by the G7 last year.

Barbados PM: Climate change requires a new financial architecture for us all

Among the countries most vulnerable to climate change, more than half are also affected by or at risk of conflict. But since fragile and conflict-affected settings are perceived as high-risk investment environments, they often fail to receive needed climate adaptation inflows, exacerbating an existing misallocation of capital.

A new brief by the Cairo International Center for Conflict Resolution, Peacekeeping & Peacebuilding outlines innovations that financial actors can undertake to accelerate climate finance for adaptation and mitigation in Africa, particularly for fragile and conflict-affected settings.

This brief is shared ahead of the Aswan Forum. Coming up on 21-22 June, the Aswan Forum will provide a first-of-its-kind platform in Africa to address the interlinkages between peace and development, championing Africa-led solutions.

Taskforce on Nature-related Financial Disclosures (TNFD) Expands Engagement Activities Supporting Nature-risk Framework Development

At this week's World Economic Forum in Davos, the TNFD announced three engagement initiatives, involving further stakeholders in the design and development of TNFD's recommendations.

▶ Six TNFD Consultation Groups in Australia & New Zealand, India, Japan, Netherlands, Switzerland, United Kingdom
▶ Four piloting program partnerships: FSD Africa, Global Canopy, UNEP FI, WBCSD
▶ Engagement of Indigenous Peoples and Local Communities globally in partnership with IUCN

Regarding the third point, Indigenous Peoples and Local Communities (IPLCs) steward much of the world’s natural resources and play a vital role in safeguarding nature. Their communities are also highly dependent on nature for their livelihoods and Indigenous-led enterprises are often pioneers in sustainable business models. TNFD is partnering with IUCN to engage with IPLCs and ensure their voices are included in the development of the TNFD Framework.

For more information regarding each of these recently announced TNFD engagement activities, follow the link below.

In the European Union, buildings account for 40% of energy consumption. Green finance researchers have developed an innovative tool to catalyze the Green Transition via the real estate sector.

In a recent #GGKPInsights blog, experts from Banca d'Italia, Università Cattolica del Sacro Cuore, and Ricerca sul Sistema Energetico (RSE SpA) explain an innovative prudential mechanism they've developed that would allow financial regulators to address environmental risk through mortgages.

By creating financial incentives for energy efficient real estate, this mechanism "pushes banks and borrowers to develop deep energy renovation projects."

The mechanism is also based on existing energy use certification schemes, making it relatively easy to implement.

This Saturday, 22 May is Biodiversity Day! How can the insurance industry protect biodiversity and nature?

"Five ways to foster insurance solutions for biodiversity" by Samantha Cook and Susan Holliday provides key recommendations on how insurers, policy makers, and regulators can collaboratively address biodiversity risk, promote investment in biodiversity-positive activities, and discourage biodiversity-negative activities.

This 2-3 June, the Stockholm+50 international meeting will engage key stakeholders from around the world towards achieving sustainable development. The authors argue that recognizing and capitalizing on opportunities for the insurance industry to halt biodiversity loss and restore ecosystems should be a priority at Stockholm+50.

ggkp.org/insuring-nature-S50

Do you think we should abolish ESG ratings? What do you think they actually measure: risk or sustainability performance? And what should they measure?

2° Investing Initiative is running an anonymous public survey for their research on ESG ratings. It takes about two minutes to complete. The survey results will be made public later down the line.