Digital library on sustainable finance
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The study examines the novel phenomenon of sustainability-linked bonds (SLBs). These bonds’ coupon is linked to the issuer achieving a predetermined sustainability performance target. We estimate the yield differential between SLBs and non-sustainable counterfactuals by matching bonds from the same issuer. Our results show that in most cases investors pay for the improvement in sustainability, while issuers benefit from a sustainability premium.
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Kölbel Lambillon (2022) Who pays for sustainability (pdf 1.9 MB)Summary
The Global Impact Investment Network (GIIN) conducted this pilot research study to assess the annualised impact performance of direct impact investments in clean energy access and housing. This effort addressed two sets of questions: 1) Feasibility: Is it possible to aggregate and compare impact performance data to generate insights?, 2) Results: If so, what social and environmental results are associated with impact investors’ activity?
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Evaluating Impact Performance: Clean Energy Access Investments - EN
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The recommendations for private capital in this report focus on transforming the quality and transparency of information on the impact of investment decisions and deploying financing, especially in emerging markets, that delivers positive social and environmental impact.
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Time to deliver: mobilising private capital at scale for people and planet - EN
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This research report takes stock of the climate actions that European asset owners are undertaking in light of the urgent need to act on climate change and deliver on the Paris Agreement. WWF contacted 100 asset owners across 12 countries in Europe to better understand the actions they are taking on climate change: 33 asset owners responded.
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In this 2021 edition of our Voting Matters series, 65 of the world’s largest asset managers who voted this year across 146 social and environmental resolutions are examined. Proxy voting is a core part of an asset manager’s fiduciary duty and a key way in which the sector can influence companies on social and environmental issues. This report is part of a wider programme of work, which aims to raise standards in the asset management sector around fit-for-purpose stewardship.
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The CDSB Framework application guidance for biodiversity-related disclosures (the Biodiversity Application Guidance) has been produced by CDSB to assist companies in the disclosure of the material information about the risks and opportunities that biodiversity presents to an organisation’s strategy, financial performance and condition within the mainstream report (biodiversity-related financial disclosure). It is designed to supplement the CDSB Framework for reporting environmental and climate change information to investors (CDSB Framework).
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CDSB Framework Application guidance for biodiversity-related disclosures - EN
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This Final Report, drafted by the IOSCO Task Force on Sustainable Finance (STF), follows the Consultation Report titled Recommendations on Sustainability-Related Practices, Policies, Procedures and Disclosure in Asset Management that was published on 30 June 2021 (the Consultation Report). The aim is to improve sustainability-related practices, policies, procedures and disclosures in the asset management industry and makes 5 recommendations for securities regulators and policymakers. These recommendations cover (1) asset manager practices, policies, procedures and diclosure, (2) product disclosure, (3) supervision and enforcement, (4) terminology and (5) financial and investor education. Within the report itself Chapter 1 offers an introduction, Chapter 2 provides an overview of regulatory approaches relevent to asset manager practices and disclosure including the TCFD Framework, Chapter 3 focuses on regulatory approaches related to product disclosure, chapter 4 analyses the role of financial and investor education in sustainable finance and provides a market over, chapter 5 addresses challenges and chapter 6 illustrated IOSCO's final recommendations for securities regulators and policymakers.
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This report is the outcome of a four-month-long survey conducted by Tameo on private asset impact funds (PAIFs) with a focus on developing countries. The surveyed market consists of all investment vehicles operated by specialized impact fund managers and that have more than 50% of their non-cash asset allocated both to private debt or private equity instruments and to emerging and frontier markets, with a development impact bias.
The 2021 survey brings together the most comprehensive dataset to date on this investment fund universe. It also segments the analysis by each fund’s primary asset class (fixed income, equity and mixed funds) and primary impact sector (climate & energy; food & agriculture; health & education; housing, water & communities; microfinance; SME development; and multi-sector funds). It also delves into those impact management and measurement approaches that are inherent to development finance investments. The report highlights microfinance fund data given their historical prominence within the PAIF landscape.
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The Glasgow Financial Alliance for Net Zero (GFANZ) is a global coalition of leading financial
institutions in the UN’s Race to Zero that is committed to accelerating and mainstreaming the
decarbonisation of the world economy and reaching net-zero emissions by 2050. This report aims to summarise not only the work accomplished by GFANZ to date, but also the road
ahead for GFANZ. It will also serve as a resource for financial services practitioners and all those who
work with the financial system on net-zero issues.
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This annual study focuses on sustainable Public Funds available in Switzerland and the data (climate strategies and metrics) behind sustainable investments in Switzerland.
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IFZ Sustainable Investments Studie 2021: Nachhaltige Fonds und Klimarisken - DE
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Responsible Banking: Building Foundation is the first collective progress report of the Principles for Responsible Banking signatories. It synthesizes individual reporting from over 200 signatories, providing a status update on their progress in implementing the PRB framework, and thereby taking steps to align their business strategies with the UN Sustainable Development Goals and Paris Climate Agreement.
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This report summarises the actions, activities and achievements of the UN-convened Net-Zero Asset Owner Alliance and its members since its establishment in September 2019.
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CFA Institute is a not-for-profit association of investment professionals with the mission of leading the investment profession globally by promoting the highest standards of ethics, education, and professional excellence for the ultimate benefit of society. The Global ESG Disclosure Standards for Investment Products (the “Standards”) are ethical standards based on the principles of fair representation and full disclosure. They are designed to communicate information about an investment product’s consideration of environmental, social, and governance (ESG) issues in its objectives, investment process, or stewardship activities
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Global ESG Disclosure Standards for Investment Products 2021 - EN
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This 2021 Eurosif report seeks to shift the narrative and set a new course for sustainable finance by focusing on how financial can achieve positive outcomes in the real world.
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The Swiss financial sector is in a period of transition toward more sustainable practices, in which banks can be pivotal contributors. In order to be successful, banks must leverage their services, asset management and private clients toward sustainability. Within this study, the Ticino Banking Association chronicles these developments and evaluates sustainable finance initiatives being undertaken in order to encourage sector specific action, demonstrate best practice within the Ticino financial market and interrogate CSR practices. SSF acted as partner for this study.
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This Net-Zero Asset Owner Alliance position paper presents the basis for scaling carbon dioxide removal (CDR) solutions, including a mix of land-based carbon sinks, nature-based solutions and technological carbon removal approaches, which are essential for alignment to a 1.5°C pathway.
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In this report by ShareAction, the often ignores ESG aspect of health is examined through the lens of it being a systemic risk that investors cannot simply diversify away from. Investors driving positive health outcomes are examined alongside existing barriers and future opportunities.
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Health: An Untapped Asset - How Investors can strengthen returns by improving health outcomes - EN
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This study investigates the link between investor’s willingness to pay (WTP) for sustainable investments and the extent of the impact of such investments. The authors conclude that investors do favour sustainable investment mainly due to the so- called “warm glow” derived from buying such investments, but do not necessarily value the degree of positive impact when comparing different investments. This means that investors value that an investment is sustainable compared to unsustainable, but the extent of sustainability depends more on the investment choices presented rather than any intrinsic quality of the investment. Investor decision can therefore be influenced by the “arbitrary choice set up”, namely the comparison to the other investments alongside which one sustainable investment is presented. The biggest influence on the investment choice made was therefore how the investment is perceived compared to other options, rather than anything else. This effect is termed “scope neglect”, which means that other potentially influencing aspects, i.e. the definition of the scope of the investment, is ignored. Investors value whether or not an investment contributes to climate change mitigation, but not necessarily, to what extent it contributes to it. The authors of the study indicated that greenwashing within the financial industry is made possible by these concepts of “warm glow” and “scope neglect”. The responsibility to communicate authentically therefore lies with those financial players who create the choice set up for investors.
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In this publication investment and financing that is required to meet Switzerland's 2050 goals is evaluated. Investments totaling CHF 387 billion will be required by 2050. This means an average annual investment requirement of CHF 12.9 billion. According to this report, it is feasible that most of the necessary investment comes from lending and the capital market. Banks will gain a new business opportunity in financing, but also face logistical challenges considering the diversity of such loans. Capital market financing will account for a small proportion of total annual bond issues. Investments related to public goods can also be additionally supported by state subsidies. A small fraction of investment is also needed from blended finance or public-private partnerships directed towards news technologies, such as carbon sequestration.
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Sustainable finance Investment and financing needed for Switzerland to reach net zero by 2050 - DE
Sustainable finance Investment and financing needed for Switzerland to reach net zero by 2050 - FR
Sustainable finance Investment and financing needed for Switzerland to reach net zero by 2050 - EN
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The European Central bank, in a joint analysis with the European Systemic Risk Board (ESRB), examined climate risk to financial stability using three climate scenarios laid out by the Network for Greening the Financial System (NGFS). The analysis covered all financial sectors within EU regions. Both transition risks and physical risks were investigated and potential gaps in the models were also exposed.
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Climate-related risk and financial stability- ECB/ESRB Project Team on climate risk monitoring - EN
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The new sustainable finance strategy aims to support the financing of the transition to a sustainable economy by proposing action in four number of areas: transition finance, inclusiveness, resilience and contribution of the financial system and global ambition.
It builds on the 2018 action plan on financing sustainable growth, the transition finance report by the Platform on Sustainable Finance and a consultation held from April to July 2020.
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Strategy for Financing the Transition to a Sustainable Economy - EN
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This report highlights the urgency for central banks and financial supervisors to act on the risk of unprecedented nature loss. With biodiversity loss not only compounding climate-related risks but a global crisis in its own right, the report warns that current practices of only integrating climate-related risks and impacts in existing mandates of central banks and financial supervisors, and not including risks from nature loss, fall short in ensuring a sustainable financial system
The report was published within the scope of WWF’s Greening Financial Regulation Initiative which supports central banks, financial regulators and supervisors in enhancing the financial sector’s stability and resilience to climate-related and broader environmental and social risks, while enabling the mobilisation of capital for the transition to a low-carbon, resilient and sustainable economy.
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Nature’s next stewards. Why central bankers need to take action on biodiversity risk - EN
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The 2021 State of Cities Climate Finance Report investigates the current state of urban climate investment, the barriers to reaching the needed investment levels, and the steps
to overcoming these challenges. The report is delivered in two parts; The Landscape of Urban Climate Finance (Part 1). Authored by the Cities Climate Finance Leadership Alliance Secretariat (Climate Policy Initiative) in partnership with the Atlantic Council’s Adrienne Arsht-Rockefeller Foundation Resilience Center, This section comprises a comprehensive global estimate of urban climate finance, tracking all sources of climate finance flows and investments in buildings and the transport sector. In Part 2, The Enabling Conditions for Urban Climate Finance, authored by the World Bank, enabling frameworks are analyszed and potential solutions for mobilizing climate finance for low carbon, climate-resilient urban development pathways are highlighted.
The Cities Climate Finance Leadership Alliance is a multi-level and multi-stakeholder coalition aimed at closing the investment gap for urban subnational climate projects and infrastructure.
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The Convention on Biological Diversity (CBD) is an international legally binding treaty signed in 1992 to provide a global framework for action on biodiversity. It is one of the three Rio Conventions, alongside the UN Framework Convention on Climate Change (UNFCCC) and UN Convention to Combat Desertification (UNCCD). It aims to conserve biological diversity, sustainably use components of biodiveristy and share benefits from genetic resources dair and equitably.
The Post-2020 Global Biodiversity Framework aims to mobilize the world community to protect and restore nature and support governance at all levels, thereby unlocking new business opportunties and conserving biodiversity for the benefit of future generations.
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Financial Sector Guide for the Convention on Biological Diversity. Key Actions for Nature - EN
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The transition to a low carbon economy has potential risks to the financial sector, the so called "carbon bubble". Companies relying too heavily on fossil fuels are incorrectly valued on the stock market, because these valuations fail to consider the full cost associated with climate change and climate aligned policies. This study (1) assesses the carbon risks in the German economy, (2) conducts a carbon stress test for German financial institutions and (3) recommends regulatory instruments to mitigate carbon risks internationally.
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Final Report: Carbon Bubble - Analyses, economic risks, measures and instruments - EN
