Latest news with #sustainablefinance
Yahoo
2 days ago
- Business
- Yahoo
Steering capital toward a sustainable future
In an increasingly crowded ESG investing landscape, EFG Asset Management is aiming to stand apart through a rigorous, integrated and transparent approach. For Melanie Beyeler, Senior Portfolio Manager at EFG, sustainable finance is not only a competitive differentiator, but a long-term shift in how capital is managed and deployed. 'At EFG, we view ESG integration as an essential element of sound risk management,' says Beyeler. 'This means we systematically consider relevant environmental, social and governance factors alongside traditional financial analysis to better manage risks and identify opportunities across all investments.' Rather than limiting ESG to a niche set of products, EFG sees it as a lens that enhances investment decisions across the board. The bank also places strong emphasis on aligning capital with client values and broader societal shifts. 'When it comes to sustainable investing, we focus on areas where we see an opportunity to deliver attractive long-term returns while supporting broader sustainability goals,' Beyeler explains. 'We recognise that our role as an asset allocator on behalf of our clients positions us to channel capital towards solutions that support the transition to a more sustainable economy.' A Systematic Approach This values-driven approach is backed by EFG's proprietary tool - the Global Responsible Investment Platform (GRIP), which plays a central role in evaluating ESG factors throughout the investment process. 'To ensure ESG factors are consistently integrated into our investment process, we use our proprietary ESG measurement tool, GRIP (Global Responsible Investment Platform),' says Beyeler. 'It brings together more than 400 data points and insights from a range of established ESG research providers into one system, providing us with a holistic view of each company's ESG strengths and weaknesses.' The GRIP system helps standardise how EFG evaluates ESG risks and opportunities across companies and sectors, enhancing its ability to construct portfolios that are both resilient and forward-looking. Meeting Generational Demand As ESG themes move from the margins into the mainstream, Beyeler sees a clear rise in client appetite, particularly among younger investors. 'In my experience with clients and supported by recent industry insights, interest in sustainable investing remains resilient with more than 60% of investors reporting increased interest over the past two years,' she notes. A key factor behind this shift is generational wealth transfer. 'Over the next decade, Millennials and Gen X are expected to inherit around $22tn globally – and they expect their bank to offer investment strategies and solutions that align with their values,' she adds. To respond, EFG is expanding its sustainable investing offering with thematic strategies such as clean energy, climate resilience, and gender equality, ensuring the bank keeps pace with changing client priorities. 'At EFG, we see sustainability as secular trend. And we continue to expand our sustainable investing offering to ensure it meets our clients' expectations and priorities - across generations,' she says. Navigating Regulation and Risk The growing demand for ESG investing also comes with increased regulatory scrutiny, particularly around disclosure, transparency, and accountability. Beyeler says the Swiss private banking sector is adapting, but there's more to do. 'The regulatory landscape for sustainable finance has become more rigorous in recent years and continues to evolve,' she says. 'As a Swiss private bank, we recognise that clients, investors and regulators expect greater transparency, stronger governance and reliable data to show how sustainability is managed in practice.' Progress is being made. 'The Swiss private banking sector has made solid progress by increasingly aligning with the voluntary Swiss Climate Scores, improving ESG disclosures, updating governance standards, and helping clients invest more sustainably,' she explains, pointing to collaborative efforts like the 'Sustainable Finance as an Opportunity for Wealth Management' initiative, which brought together more than 20 banks to deepen their sustainability integration. A Long-Term Transformation For EFG, the embrace of ESG is not a box-ticking exercise, it's a strategic shift that will shape the future of wealth management. 'Sustainability is not a passing phenomenon, but a secular trend that will have a lasting impact on the development of the global economy,' Beyeler says. 'Climate change and its physical impacts such as extreme weather events influence how companies assess risks and how they operate.' She adds that sustainability is becoming 'core to how we advise clients, build portfolios and manage risks,' and that for the next generation, 'expertise and an attractive offering in this area is expected from wealth managers.' Embedding Sustainability in Culture Furthermore, EFG's commitment goes beyond investment strategy, it's embedded within its corporate culture and employee engagement. One standout initiative is the partnership with Team Malizia, led by sailor Boris Herrmann, to raise awareness about ocean conservation through the 'My Ocean Challenge' education programme. 'EFG employees can volunteer one day per annum to help raise awareness about ocean conservation partnering with schools around the world,' Beyeler says. Internally, EFG also invests in training to deepen ESG expertise across its teams. 'We continue to provide ESG-related trainings to our employees to analyse risks and opportunities and educate them about our evolving product offering as well as relevant regulatory developments,' she says. 'EFG is convinced that by investing in training and development of our people and by actively fostering employee engagement, we remain the preferred financial partner for our existing and prospective clients, including the next generation.' In a fast-changing ESG landscape, EFG is betting on long-term commitment over short-term compliance. For Beyeler and her team, sustainability isn't just about ticking boxes - it's about building trust and resilience, today and into the future. "Steering capital toward a sustainable future" was originally created and published by Private Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Times
15-07-2025
- Business
- Times
Government ditches plan to stop businesses ‘greenwashing'
The government has dropped a plan to introduce a framework for standardising the calculation of carbon emissions as a way of cracking down on companies and investment funds making exaggerated environmental claims. The plan for a so-called green taxonomy, a classification tool that would have required companies to be more accurate and rigorous in their environmental claims, has been ditched, the Treasury said. 'After careful consideration of the responses [to a recent consultation], the government has concluded that a UK taxonomy would not be the most effective tool to deliver the green transition and should not be part of our sustainable finance framework,' it said. • How to avoid greenwashing in your carbon-neutral claims Other policies, it said, were 'of higher priority to accelerate investment into the transition to net zero and limit greenwashing'. The planned policy was seen by environmentalists as an important tool for stamping out so-called greenwashing as well as helping direct new capital into areas most likely to help reduce climate change. The UK Sustainable Investment and Finance Association, which has 300 members with £19 trillion of assets under management, described the move as 'disappointing'. While 45 per cent of 150 responses to a Treasury consultation on the proposed taxonomy were positive, 55 per cent were 'mixed' or negative, it said. Concerns centred around 'the real-world application of this policy, primarily driven out of experience of working with other taxonomies'. Some respondents said other policies would have more impact. Separate rules from the Financial Conduct Authority on the labelling and naming of funds came into force earlier this year, while rules from the Competition and Markets Authority and Advertising Standards Authority have also been used to challenge greenwashing. Some large companies in Britain already use an EU-devised taxonomy to calculate their emissions and impact on climate change. Companies and fund managers have been able to make all kinds of 'sustainability' and green claims without an independently set framework through which to judge them. 'There was limited evidence of a compelling use case for a specific UK taxonomy that would achieve outcomes which could not be otherwise achieved using existing taxonomies or market frameworks, or other policy,' the Treasury concluded.
Forbes
15-07-2025
- Business
- Forbes
UK Green Taxonomy Dies As Sustainability Regulations Face Global Pushback
Long exposure photo from Big Ben in sunrise On July 15, HM Treasury announced that the United Kingdom will be abandoning plans to create a UK Green Taxonomy. The move shocked sustainability advocates and comes at a time when the European Union and other jurisdictions reexamine existing sustainability regulations aimed at reducing greenhouse gas emissions and shifting towards net zero. In October 2024, the UK government published a green paper setting net zero transition and green energy as a priority. The consultation on the need for a UK Green Taxonomy followed in November. The consultation stated that the UK aims to be the world leader in sustainable finance, including 'delivering a regulatory framework to support sustainable growth and enable the private sector to realise the opportunities of the transition.' The consultation defined a taxonomy as "a classification tool which provides its users with a common framework to define which economic activities support climate, environmental or wider sustainability objectives. The purpose of developing a taxonomy for sustainable activities is typically to facilitate an increase in sustainable investment, and/or to reduce greenwashing, including by providing a reference point for other policies.' The consultation closed in February. On July 15, HM Treasury released the UK Green Taxonomy Consultation Response, outlining the results and ending the drive to the creation of the regulation. The first sentence of the response demonstrated the political shift within the UK on this issue. 'Growth is the number one mission of this government and sustainable finance can be a key driver of that growth.' This is different from the language of the consultation that called sustainability 'essential for long-term economic growth.' While the change may be subtle, it is significant. HM Treasury received only 150 responses to the consultation. 45% of the respondents were in favor of a taxonomy, while 55% were opposed or mixed. 'The concern largely centred around the real-world application of this policy, primarily driven out of experience of working with other taxonomies, and concerns on the extent to which taxonomies were delivering on desired objectives.' This observation relating to other taxonomies is not only timely, as the European Commission is working on reducing the EU Taxonomy for Sustainable Activities, but is also reflective of the larger pushback on the effectiveness of sustainability regulations. As the effects and cost of these new regulations become real, business interests are resisting the proposals. Even climate activists are questioning their effectiveness, as reporting standards disclose information without requiring actual action to reduce GHG emissions. The consultation looked at two main areas of focus. The first addressed whether a taxonomy could help channel money into the net zero transition. 'The hypothesis behind many taxonomies is that it is difficult to identify credible, sustainable investment opportunities and that a UK Taxonomy could improve clarity about what activities are 'green' so that investors could confidently compare financial products and deploy capital towards sustainable goals.' The responses were split by industry, with representatives of the energy, nuclear, and waste sectors saying that the taxonomy would help reach this goal. Respondents from the 'real economy' disagreed and "viewed a UK Taxonomy as a classification tool that could serve as an additional data point among various factors considered when making investment decisions. However, it was unlikely to have a material impact on final investment decisions." The second area of focus looked at greenwashing, or misleading claims made by companies so they look more environmentally friendly. The taxonomy was aimed at reducing greenwashing "based on the hypothesis that activity level data could help to verify green and sustainability claims in the absence of a clear framework, and that a taxonomy could be the solution by definitively setting out what activities are 'green'.' However, respondents disagreed and felt that the creation of a UK Taxonomy would lead to more fragmentation and confusion. It was argued that this is best handled through existing regulators, like the Competition Markets Authority and the Advertising Standards Authority. This is the approach recently adopted in Canada. Additionally, the creation of sustainability reporting standards through the FCA Sustainability Disclosure Requirements and UK Sustainability Reporting Standards will address those claims made in financial documents. While the UK Green Taxonomy is dead, the creation of the UK SRS moves forward. The Department for Business and Trade released a draft of sustainability reporting standards for the UK on June 25. The consultation period is open until September 17, with the final requirements set to be published by December.
Zawya
14-07-2025
- Business
- Zawya
Saudi accounts for two-thirds of Mena's H1 sustainable bonds
Annual issuances of green social, sustainable, and sustainability-linked bonds (GSSS) in the Middle East and North Africa (Mena) reached $9.47 billion in the first six months of 2025, down slightly from the same period of last year ($ 9.91 billion), according to data from Bloomberg's Capital Markets League Tables. Higher global interest rates and a pause in deals from Egypt and Qatar offset strong Saudi and UAE supply, keeping regional volumes broadly unchanged from H1 2024. Investors digested the heaviest pipeline in 2023, when issuances surged to their highest levels due to COP28 taking place in the region. Saudi Arabia and the UAE accounted for all issuances in H1 2025. Saudi Arabia surged to the top of regional league tables, accounting for 66% of total issuances ($6.25 billion) in the first six months of 2025. The 25% increase on the same period of 2024 was driven by Vision 2030 infrastructure spending. The largest issuance came from the Saudi government ($1.58 billion), while Al Rajhi issued two sustainable sukuks ($1.5 billion and $200 million respectively). Other green and sustainable sukuk issuers include Saudi Electricity (1.25 billion), and debut issuances from Alinma ($500 million) and SAB's AT1 issuance ($650 million). The UAE accounted for the remaining 34% of issuances ($3.22 billion). Key transactions included debut issuances from National Central Cooling ($700 million) and Omniyat ($500 million). The majority of Mena sustainable debt issuances during the period were Islamic instruments ($6.8 billion), with the 17% year-on-year increase reflecting the emergence of Saudi Arabia and the UAE as global Islamic finance centers. The period was also notable for the significant growth in AT1 issuances, which accounted for $3.15 billion of sales, the highest level seen in the last five years. AT1 issuances are a key way for banks to comply with the Basel 3 framework ahead of the initial phase in dates of 2026. They witnessed strong investor demand in the UAE from regional and international investors. Venty Mulani, Data Specialist - Sustainable Fixed Income, Bloomberg LP, said: 'The sustainable bond market in Saudi Arabia and the UAE continues to mature and evolve. As reporting improves, with Bloomberg data suggesting nearly 68% of issuances over the past three years have either an impact or allocation report, we look forward to seeing more transparency through innovations such as green digital bonds.'
Arabian Business
14-07-2025
- Business
- Arabian Business
Saudi Arabia, UAE leads $9.47bn MENA sustainable bond market in H1 2025
Issuances of green, social, sustainable, and sustainability-linked (GSSS) bonds in the Middle East and North Africa (MENA) reached $9.47 billion in the first half of 2025, according to Bloomberg's Capital Markets League Tables. The total marked a slight decline from the same period in 2024, when issuances stood at $9.91 billion. Higher global interest rates and a pause in deals from Egypt and Qatar contributed to the lower volume, despite continued activity in Saudi Arabia and the UAE. The first half of 2025 saw all regional issuances originate from the two Gulf countries, with Saudi Arabia leading. Saudi Arabia, UAE drive all MENA GSSS bond issuances Saudi Arabia accounted for 66 per cent of total issuances, or $6.25 billion, in the first six months of 2025. This represented a 25 per cent increase compared with the same period in 2024, supported by infrastructure spending under Vision 2030. The largest single issuance came from the Saudi government, at $1.58 billion. Al Rajhi Bank issued two sustainable sukuks, worth $1.5 billion and $200 million, respectively. Other Saudi-based issuers included Saudi Electricity ($1.25 billion), Alinma Bank with a debut sustainable sukuk of $500 million, and Saudi Awwal Bank (SAB) with an Additional Tier 1 (AT1) issuance of $650 million. The UAE made up the remaining 34 per cent of MENA issuances, totalling $3.22 billion. Key transactions included debut issuances from National Central Cooling Company ($700 million) and property developer Omniyat ($500 million). Islamic instruments dominated GSSS debt issuance during the period, with $6.8 billion in total, representing a 17 per cent increase compared to the first half of 2024. This reflected the growing role of Saudi Arabia and the UAE in global Islamic finance. The period also saw an increase in AT1 issuances, which reached $3.15 billion—the highest level recorded in the past five years. These instruments are used by banks to meet Basel 3 requirements ahead of the 2026 deadlines. The UAE saw strong investor demand for these issuances from both regional and international investors. 'The sustainable bond market in Saudi Arabia and the UAE continues to mature and evolve. As reporting improves, with Bloomberg data suggesting nearly 68 per cent of issuances over the past three years have either an impact or allocation report, we look forward to seeing more transparency through innovations such as green digital bonds,' Venty Mulani, Data Specialist – Sustainable Fixed Income, Bloomberg LP said. Bloomberg's league tables provide access to data on capital markets representation and are available via the Bloomberg Terminal under LEAG. ESG data is available under BI ESG. Allocation and impact data on MENA GSSS bond issuances can also be accessed through the Terminal.
