Breaking New Ground

Industry update

Asset management

Amundi launches a suite of net zero funds across multiple asset classes
The leading European asset manager has announced its Net Zero Ambition strategies, which includes a suite of passively and actively managed funds across a broad range of asset classes, aimed at helping investors to align their portfolios with a net zero trajectory.

Apollo launches $4 billion clean energy transition strategy
The global alternative investment manager announced its new strategy through providing competitive, flexible, and patient financing through yield and hybrid investments from its affiliates and strategic partners.

AXA Investment Managers doubles stewardship engagements in 2022, with considerations to escalate climate and biodiversity issues
As outlined in its latest Stewardship Report, sustainability factors were highlighted as a key focus for the firm, with the foreseeable trend that investors will continue mobilising on broader biodiversity issues in 2023. The firm also has plans to increase oversight of its engagement process to increase the chances of achieving the desired change within companies.

Banking and capital markets

European banks not ready for climate disclosure rules
The European Central Bank announced the publication of its bank review performed on climate and environmental risk disclosure practices in the European Union, indicating that while reporting has improved over the past year, very few banks are prepared to meet regulatory disclosure requirements set to take effect this year.

Biodiversity is the next big ESG hurdle for banks
Banks in Asia-Pacific have started considering biodiversity risks when making financing assessments but are facing some challenges with the lack of standardised frameworks. It has been highlighted the importance for banks to put in place a unified approach to assess biodiversity risks and key performance indicators to ensure financing options can be properly assessed for companies.

The Climate Bonds Initiative offers firm-level certification for sustainability-linked bonds
The Climate Bonds Certification framework has been designed to work in parallel with the normal process for issuing bonds, loans or other debt instruments. The certification scheme will focus on key aspects in providing assurance on climate credentials of corporate entities, extending certification beyond labelled debt to the wider general-purpose debt and equity investment.

Insurance

Prudential Singapore releases 2022 ESG Report
The leading insurer has published its recent sustainability report, which illustrates how they are fulfilling their purpose and advancing sustainable development in an evolving landscape. It believes that it has a distinctive role to play in the global net zero transition, particularly across emerging markets in Asia. However, the main challenge that persists is the lack of enough investable green opportunities green opportunities denominated in local currencies in the region.

Great Eastern Holdings Limited releases 2022 Sustainability Report
The multinational insurance company has recently shared their journey, progress and plans to make meaningful contributions towards a better tomorrow. The firm has a broad oversight in ensuring sustainability is aligned and embedded in their overall corporate strategy, with the establishment of four task force to drive the execution of strategy and foster ESG related activities across the Group.

Allianz issues publication on blueprints for a sustainable Asia
The German financial services company seeks to integrates sustainability across various spectrums, from managing risks and capturing opportunities in their core business processes to the company’s operations. The firm is also working in partnership to create stronger social solutions to challenges to support its customers to adapt to climate risks and minimise damage and encourage net-zero transition by insuring low-carbon developments.

ESG platforms, solutions and tools

ESG Book launches solution enabling companies to access data behind ESG ratings
The sustainability data and technology company is currently developing a new tool to help companies address increasingly complex challenges around ESG data management and disclosure amid growing investor, regulatory and stakeholder scrutiny over sustainability-related performance and rising costs to collect, analyse and report ESG data.

Schneider Electric launches decarbonisation solutions for small and medium-sized enterprises (SMEs)
The firm announced Zeigo, a suite of software solutions aimed at enabling companies to simplify and accelerate climate change for organisations of any size, enabling SMEs to track and reduce their climate impact. The solution encompasses features to help measure their emissions baseline, set reduction goals, develop decarbonisation roadmap, and access to tools for climate action.

Interesting reads

Data centres in Singapore plan to green operations with hydrogen power
Key local players has emphasized on the need to ensure that sustainable practices at its data centre are in step with its big-tech clients’ focus on ensuring net-zero emissions or becoming carbon-negative, in line with Singapore’s commitments to reach net-zero carbon emissions by 2050.

The National University of Singapore launches Sustainable and Green Finance Institute (SGFIN) research institute with support from MAS
SGFIN has been setup to develop deep research and capabilities in the area of green finance and sustainability outcomes, and policymaking across the real economy and financial sectors. It will also play an important role in developing strong capabilities in green finance and in strengthening Singapore’s position as a global financial hub.

How the world is spending $1.1 trillion on climate technology
While climate tech showed a surprising resilience compared to the broader venture capital (VC) landscape in 2022, this year so far suggests that the sector is not immune. VC and private equity flows into the climate sector fell 12.8% in the first quarter compared to the rolling four-quarter average.