31 July 2023

Breaking news – Sustainable Finance

What’s new in sustainable finance?

Every week, Carbon4 Finance shares the latest headlines in sustainable finance.

A study by MSCI found that only 1.9% of article 8 and 9 funds had reported EU taxonomy-aligned revenue and most reported no aligned revenue. Due to a lack “of disclosure in underlying companies”, article 8 and 9 funds have no intent of achieving EU taxonomy targets in their reporting.

Even if the Financial Stability Board announced ahead of the G20 that progress has been made in addressing climate-related financial risks, much work remains. Along with improving data consistency across borders, metrics need to be developed for climate-related financial risks, and climate scenarios should be better embedded in assessing financial risks.
Banks are developing new reporting standards for accounting for carbon emissions in bond and stock sales, aiming to exclude 66% of these emissions from their carbon footprint. Between 2016 and 2022, almost half of the financing provided by the 6 biggest US banks for top fossil fuel companies came from capital markets instead of direct lending.

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