Category: Finance

Private equity’s falling out of love with plastic packaging

Read the full story from Reuters.

A decade ago, private equity couldn’t get enough of plastic packaging. They snapped up companies making bags, films and trays to contain everything from food and fashion to drink to drugs, drawn by reliable cash flows and consolidation prospects.

But now the sector’s not quite so in vogue. Many buyout firms are steering clear, and some of those holding assets are struggling to offload them at what they consider attractive prices, according to people involved in such deals.

This reversal illustrates how much the investment world has recalibrated itself in a matter of years, with environmental factors becoming dealmakers or breakers.

Biden orders Yellen to outline climate risks to financial stability

Read the full story at Banking Dive.

The Biden administration issued an executive order Thursday giving Treasury Secretary Janet Yellen six months to recommend steps to reduce the risks to financial stability posed by climate change. Her assessment will incorporate financial regulators’ plans to boost climate-risk disclosures.

The order also asks National Economic Council Director Brian Deese and National Climate Adviser Gina McCarthy, in coordination with Yellen and the Office of Management and Budget, to identify and disclose, within 120 days, the extent of exposure government programs and assets have to climate risks.

“Our modern financial system was built on the assumption that the climate was stable, and that assumption has largely dominated existing financial models, and it’s underpinned the way that we invest capital, the way that we have built society, and the way that we have forecasted for the long term,” Deese said Thursday, according to Bloomberg. “Today it’s clear that we no longer live in such a world.”

The Role of Natural Climate Solutions in Corporate Climate Commitments: A Brief for Investors

Download the document.

The Role of Natural Climate Solutions in Corporate Climate Commitments: A Brief for Investors is a first-of-its-kind engagement tool for investors to spur meaningful dialogue with companies on the role and use of natural climate solutions in delivering on those commitments. It provides clear guidance on how to facilitate engagements with portfolio companies and lays out expectations for climate disclosures—calling for transparency in critical steps along the way to net zero.

JPMorgan achieves carbon neutrality in operations, sets carbon reduction financing targets for high emitting sectors

Read the full story at ESG Today.

JPMorgan Chase announced that it has achieved carbon neutrality across its operations in 2020 and unveiled a new set of targets towards its goal to align its financing activities with the climate goals of the Paris Agreement.

Morningstar expands sustainable investing toolkit with ESG assessments of asset managers & companies

Read the full story at ESG Today.

Independent investment research firm Morningstar announced today the launch of the Morningstar ESG Commitment Level, and the Morningstar ESG Risk Rating Assessment, designed to provide ESG assessments of asset managers and companies, respectively.

The launch of the new products follows the acquisition last year of ESG ratings and research provider Sustainalytics, and the subsequent announcement that it has started the process of formally integrating ESG factors into its analysis of stocks, funds, and asset managers, including the integration of Sustainalytics research into Morningstar’s equity research methodology.

Morningstar ESG Commitment Level provides assessments for nearly 900 funds and more than 70 asset managers of the extent to they are incorporating ESG factors into their investment processes. The tool follows a four-point scale of Low, Basic, Advanced, and Leader, distilling the ESG resources, policies, and expertise at an asset management firm or within managed investment strategy into a simple assessment. The assessments are currently available for Morningstar Direct, Morningstar Office, and Premium members of Morningstar.com, and will be available later this month in Morningstar Advisor Workstation and Morningstar Analyst Research Center.

Kellogg enters growing sustainability bond market with €300 million offering

Read the full story at ESG Today.

Convenience and snack food company Kellogg announced today the launch of its inaugural sustainability bond issue, with the pricing of a €300 million 8-year bond, with a 0.5% interest coupon. Proceeds from the issue will be used to fund sustainability initiatives at the company ranging from food security to climate action.

Kellogg’s inaugural sustainability bond issue comes as the sustainable finance market is experiencing substantial growth. According to a report issued by Moody’s Investors Service earlier this week, global sustainable bond issuance reached a record $231 billion in Q1 2021, more than triple the same quarter last year. Amazon also launched its inaugural sustainability bond issue this week, with a $1 billion offering.

Stanford becomes first U.S. university to issue bonds with green and social designations

Read the full story at ESG Today.

Stanford University announced that it has issued $375 million in bonds with dual climate and sustainability designations, marking a first for U.S. higher education institutions. Proceeds from the offering will be used to finance campus construction and renovation projects.

Hard-to-Abate Sectors and Emissions: The Toughest Nuts to Crack for a Net Zero Future

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In this report, Citi’s Sustainable Finance team takes a detailed look at two hard-to-abate sectors — transport (road freight, aviation and shipping) and industry (cement and steel) — which need to be focused on to successfully meet net zero emission commitments. Collectively, these sectors account for 25% of today’s global carbon emissions, but have the potential to rise by 50% through 2050 given growth expectations.

Federated Hermes launches Responsible Investing Education Institute

Read the full story at ESG Today.

Global investment manager Federated Hermes announced today the launch of the Responsible Investing Institute, aiming at helping investment professionals to deepen their understanding of responsible investing and authentic ESG integration in order to enhance client conversations.

Moody’s: Sustainability linked loans, sustainable bond volumes soaring

Read the full story at ESG Today.

Credit ratings, research, and risk analysis provider Moody’s Investors Service released its quarterly sustainable finance update today, highlighting the dramatic growth in issuance of green, social and sustainability bonds.

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