What’s Happening In Sustainable Finance: Rhino Bonds Support Conservation, Spotlight On Social Bonds, And More ESG In Conversation podcast

Content provided by Morningstar Sustainalytics Podcast. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Morningstar Sustainalytics Podcast or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.

ESG in Conversation « »
What’s Happening in Sustainable Finance: Rhino Bonds Support Conservation, Spotlight on Social Bonds, and More

2y ago 37:52

MP3•Episode home

Episode Summary Hosts

Nicholas Gandolfo, Director, Corporate Solutions
Aditi Bhatia, Regional Sales Manager, Corporate Solutions

In our latest episode, we have a round-up of recent developments in the global sustainable finance market. From innovative instruments for financing conservation efforts to growing ESG activity in the private equity space, to a new taxonomy for social bonds, our hosts Nick and Aditi have you covered. Check out the highlights below or listen to the full episode wherever you stream your podcasts.

Social Bonds in the Spotlight

There have been some key market developments in recent months. The Platform on Sustainable Finance published its report on the EU’s Social Taxonomy providing clarification on the types of investments that would be considered socially sustainable and proposing a structure for a social taxonomy. Overall activity in social bonds issuance appears to be declining compared to recent years. This is partly due to market stabilization following a surge of issuance during the height of the pandemic and social use of proceeds frequently being included in sustainability bonds frameworks which cover both green and social projects. However, there is growing diversity in the types of social factors being addressed as more issuances come to market related to matters around gender, race, and LGBTQ issues.

Rhino Bonds: Market Innovation Support Conservation Efforts

This new form of social impact bond was recently issued by the World Bank. The USD 150 million “rhino bond” or Wildlife Conservation Bond will help to fund conservation efforts for the black rhino population in South Africa. The Rhino Bond channels investments to achieve specific conservation outcomes with proceeds being used to help staff in national parks battle poachers and improve conditions for the animals. This bond offers a new model to finance conservation efforts by directly linking the outcome of rhino conservation to investor payouts, and investment success. You can read more about the bond issuance here.

Recommended Reading

Nick once again provides a list of his recommendations for reports on ESG, sustainable finance, climate change, and transition issues.

ACT Transition Methodologies
Climate Bonds Initiative – Green Bond Pricing in the Primary Market
Climate Bonds Initiative – Global Green Taxonomy Development, Alignment, and Implementation
Taskforce on Nature-related Financial Disclosures – TNFD Nature-Related Risk & Opportunity Management and Disclosure Framework – beta v0.1
GRI – Sector Standard for Coal
IPCC – Sixth Assessment Report
Environmental Finance – Sustainability-Linked Bonds and Loans KPIs
Luxembourg Stock Exchange – Trends and Characteristics of the Sustainability-Linked Bond Market
Science-Based Targets – Guidance for Financial Institutions
Platform on Sustainable Finance – Final Report on Social Taxonomy

Gain Insight on the Material ESG Issues Companies Face and Approaches for Effective Management

Are you aware of the material ESG issues facing your company? Do you know how to effectively address them? Watch our recent webinar, Addressing Key Corporate ESG Issues: Lessons From Industries With High ESG Risk. Our panel of ESG sector analysts provide insight on the material ESG issues facing five high risk sectors. Learn how companies with high exposure to ESG risk manage their most material issues and how you can too.

Watch the Webinar

Key Moments