Finpublica News You Can Use: September 16, 2024

Social

Rights CoLab and Oxfam have recently published a report on the investor case for fighting inequality. Among other things, the report examines evidence demonstrating the risks of inequality at both the firm and system levels. It also highlights ways that investors can address inequality risks as part of their fiduciary duties. ?

Environmental

India has announced its largest wind energy project, which will power three million households.?Government owned NTPC Green Energy Limited is partnering with Suzlon Group to install 370 wind turbine generators that will generate 1,166MW.?This is the first such project to be undertaken by a company owned by the Indian government.

Regulation and Reporting

The Securities Exchange Commissions (SEC) has disbanded the Enforcement Division’s 20+ attorney Climate and ESG Task Force after three years. The group had contributed to several ESG-related cases, including those against New York Mellon Corp., Goldman Sachs Group Inc., and Brazilian miner Vale SA alleging misrepresented ESG disclosures. According to the SEC, the task force’s strategy has been effective and the expertise it developed is now embedded in the Enforcement Division.

A watchdog group has asked the U.S. Securities and Exchange Commission to investigate the State Financial Officers Foundation (SFOF) – a major player in Red States’ attacks against ESG investing. The Campaign for Accountability has alleged that SFOF (which includes several state treasurers) may provide special treatment to companies who donate to SFOF and be making investment choices for the benefit for their political benefactors rather than their constituents. You can find a copy of the letter here.?

The UK’s Financial Conduct Authority (FCA) has postponed firms’ Sustainability Disclosure Requirements (SDR) and investment labels regime compliance date by four months – until April 2025. The new requirements create four ESG-related labels: (1) Sustainability Improvers, (2) Sustainability Focus, (3) Sustainability Impact, and (4) Sustainability Mixed Goals.

Based on the current demand for EVs in Europe, the auto industry may need to either pay 15 billion euros or reduce their production for more than 2.5 million vehicles to meet the EU CO2 target in 2025, which lowers the cap on average emissions from new vehicle sales. Auto industry executives have expressed concern as the current EV ramp up is half of what is needed to avoid fines.

Investing

The Department of Energy (DOE) has released $62 million of funding in clean hydrogen technologies for the enhancement of clean energy transition in the U.S. The investments will be allocated across 20 projects in 15 states with focus on formation of hydrogen fueling systems and stations and hydrogen-powered port equipment, enforcement of hydrogen-related permits and safety, and community engagement. This investment is expected to elevate the clean hydrogen industry, improve the U.S.’s market viability, create jobs, and decrease emissions. ?

Netherlands’ ASN Impact Investors has divested all its holdings in the fashion industry – amounting to $75M investments in twelve well-known clothing companies – citing insufficient progress towards achieving more sustainable business models.?The divestment aligns with ASN’s new sustainability criteria, which excludes investments in companies it believes are engaged in fast fashion or who fail to adopt a circular business model. To-date, only 1% of discarded clothing is recycled.?ASN encouraged other investors to help accelerate the transition to a more sustainable clothing industry, which is responsible for approximately 10% of global greenhouse gas emissions. ?

HSBC has launched its Global Transition Infrastructure Debt strategy with $240M client commitments. Those investments will be lent to projects focused on GHG curtailment and net zero transition by 2050 across Europe, North America, and the APAC region.?The fund will target sectors such as renewable energy, electricity storage and transmission, critical minerals, and carbon capture.?The investment team will engage with borrowers to assess their sustainability commitments and progress.

Nasdaq and Crux have announced a partnership to provide a platform offering for the transaction and management of transferable tax credits created by the Inflation Reduction Act (IRA).?Under the IRA, tax credits for renewable energy and industrial decarbonization are transferable for the first time -- creating a new means for funding such projects through the sale of tax credits to third parties.?There are currently more than $12 billion in credits available today, with that number expected to nearly double by the end of the year. ??

Events & Membership ?

Triangle Digital will be hosting an afternoon of panels and a happy hour at NYC Climate week on September 25th. Topics will include Ag, Farming & Food, Shipping & Logistics, Bult Environment & Local Law 97, Carbon Credits, and more. You can register here.

Finpublica’s membership portal is live. If you are interested in joining a community more than 400 finance leaders focused on sustainable finance and ways to implement initiatives inside their organizations and across the industry, we invite you to apply.