Daily ESG Briefing: EBA consultation on ESG and banking closes today

The latest developments in sustainable finance

The European Banking Authority’s consultation on its discussion paper about the management and supervision of ESG risks for credit institutions and investment firms closes today. Its final report on the issue is expected to be published in June 2021.

A study by the Global Reporting Initiative (GRI) has found that sustainability reporting is becoming more popular in Latin America, with 37.5% of companies surveyed across five countries producing a report. The study also found that reporting varied greatly across countries, with 69% of companies reporting in Colombia, where the GRI’s Hispanic America Hub is based, but only 24% reporting in Peru. 

New research from Morgan Stanley has found that petrol and diesel powered cars may become a money-loser as early as 2030. A survey of institutional investors found that 17% already believe internal combustion engine technology has no or negative value. Last month, General Motors revealed plans to stop selling petrol and diesel powered cars by 2035, and the UK announced in November 2020 that the sale of new petrol and diesel cars would be banned from 2030. 

Climate tech company SilviaTerra has announced the launch of a forest carbon marketplace where landowners can sell carbon credits based on yearly satellite measurement of their land, which SilviaTerra claims will improve transparency. By the end of 2021, all US landowners will be eligible to sell carbon credits on the market, which was announced on Monday as one of 26 solutions in Microsoft’s new carbon removal portfolio.

BMO Financial Group has signed up to the UN Principles for Responsible Banking. The bank ranked 15th on the Wall Street Journal’s 2020 list of the 100 most sustainably managed companies, the only North American bank to make the list.

The IFRS Foundation Trustees have announced the next steps in their sustainability reporting project following the closure of their consultation on global sustainability standards, which received 576 comments. The trustees have established a steering committee to oversee the next phases of work and will undertake detailed analysis of consultation responses.