The International Capital Markets Association (ICMA) published a 2022 appendix update to the 2021 versions of theGreen Bond Principles and Social Bond Principles. The 2022 update includes new definitions and clarifies terminology and market practice of green and social securitisation.
An updated registry of potential KPIs for Sustainability Linked Bonds (SLBs) was released. The registry includes a materiality matrix for various industries, in addition to a list of approximately 300 suggested KPIs for all sectors, including benchmarks, SDG alignment, and corresponding sustainability themes. This was accompanied by the updated Sustainability Linked Bond Principles Q&A. It outlines the core components of the SLBP and highlights the importance of materiality when assessing KPIs.
Climate Bonds publishes Social and Sustainability Bond Database
The AASB and AUASB expressed their view that the proposed sustainability disclosures standards will not achieve the intended objective of improving consistency, comparability and transparency of sustainability-related financial reporting.
In particular, the AASB and AUASB have concerns regarding the insufficient public consultation period, appropriateness of the proposed industry descriptions and requirements, volume of content being proposed to, and how the proposed industry-based metrics relate to climate.
NSW Government releases interactive Net Zero Emissions Dashboard
Climate and energy-focused aspects of the bill will include measures in lowering cost of renewable energy for consumers, promote development of domestic clean energy manufacturing capacity, support climate solutions to decarbonise industry, and invest in climate resilience and mitigation initiatives in disadvantaged communities.
The bill outlines Australia’s emissions reduction target of 43% from 2005 levels by 2030 and for net zero emissions by 2050. It will also establish a formal review process from the Climate Change Authority.
NZ Government passes mandatory climate-related disclosures
The goal of mandatory climate-related disclosures is to ensure that climate change and its effects are regularly considered business activities, help climate reporting entities better demonstrate responsibility, and lead to more efficient allocation of capital to help smooth the transition to a sustainable economy.
Energy efficiency and accessibility standards increase for new homes
The voluntary survey was designed to provide insights into how APRA-regulated entities are generally aligned to APRA’s guidance set out in Prudential Practice Guide CPG 229 Climate Change Financial Risks.
The responses to the survey from 64 medium to large institutions, suggest APRA-regulated entities are generally aligning well to APRA’s guidance, especially in the areas of governance and disclosure. Responses indicate that only a small portion of APRA-regulated entities embed climate risk across their risk management framework.
EU approves inclusion of nuclear and natural gas in its green taxonomy
Under the green taxonomy, Natural gas will have to be below certain emissions thresholds and may only be approved to 2030 or 2035 to be labelled as green. New nuclear plants using advanced technologies to extend the life of existing plans may be approved to 2040 or 2050.
Britain’s Financial Conduct Authority calls on outside experts to combat greenwashing
The FCA is under pressure to combat potential greenwashing and funds exaggerating their climate credentials.
The FCA is said to set up a new ESG Advisory Committee as part of its efforts to meet the government’s objective reach a net zero economy by 2050. The committee will include external experts and provide advice on the supervision of how firms apply ESG rules.