Breaking News – Sustainable Finance - May 2024

What’s new in sustainable finance?

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

The Core Principles for Banking Supervision have been updated to address operational resilience, business sustainability, and climate-related risks, ensuring global banks are resilient, sustainable, and responsive to changing challenges.

The European Central Bank published a working paper on bank climate commitments, lending, and engagement.  Among key findings, the paper finds out that climate-aligned banks, despite increased participation and improved ESG ratings, do not show evidence of divestment from high-emissions sectors compared to non-signers, indicating no differential lending or pricing behaviors, nor do borrowers from these banks demonstrate a greater inclination to set decarbonization targets.

Recent decisions were made by the International Accounting Standards Board (IASB) during a meeting. These key discussions covered topics such as revenue recognition, rate-regulated activities, intangible assets, and the second comprehensive review of the IFRS for SMEs Accounting Standard. Additionally, the IASB addressed climate-related commitments, financial guarantee contracts, and provisions, aiming to ensure transparency and consistency in accounting standards.

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