Daily ESG Briefing: HSBC helps fund expansion of Asian ESG data house MioTech

The latest developments in sustainable finance

HSBC has invested in AI-based sustainability data provider MioTech. The banking giant’s Strategic Innovation Investments Team participated in the latest funding round from the firm, which claims to cover more than a million public and private companies in the Greater China region. MioTech introduced supply chain, portfolio and energy monitoring systems to its ESG assessments last year. It said in a statement that it would use the new investment to expand across Asia and Europe, and develop more software and products. Existing investors include ZhenFund, Horizons Ventures, Moody's and TOM Group.

Tabula Investment Management has joined Climate Action 100+. The addition of the specialist fixed-income ETF provider comes at a time when the investor engagement network is turning its attention to bond markets. Traditionally the group, whose members now represents more than $52trn, have focused on shareholder engagement. 

German asset manager DWS is calling on the International Financial Reporting Standards Foundation (IFRS) to take a ‘double materiality’ approach to its work on creating a disclosure framework – meaning it should reflect the impact companies have on society and the environment, as well as the impact that environmental and social risks may have on companies. In response to the recent IFRS consultation, the firm also requested a framework that goes beyond climate change, covering other ESG issues. “Furthermore, recent DWS research indicates that without a global ESG accounting standard, ESG investing will fail a large part of the investment community,” it said. 

Acuite Ratings has launched what it claims is the first dedicated ESG ratings house in India. ESG Risk Assessments & Insights will rate the top 1,000 listed companies in the country by evaluating their performance on ESG parameters, as well as their reporting transparency. 

Ceres has called on the US Municipal Securities Rulemaking Board to incorporate climate risk disclosure into its supervision of cities and towns. "Right now, it’s severely lacking at the municipal market level,” said Steven Rothstein, Managing Director of the Ceres Accelerator for Sustainable Capital Markets. “That's a problem. Unlike some businesses or people, cities and towns cannot pick up and move to higher ground. They are fixed in place, making their exposure to climate risk critical information for those looking to invest.”

23% of investors surveyed for Commonfund Capital's private markets survey said they had increased their allocation to green investments, representing a 35% increase on last year's results. This is the asset manager's fourth-annual survey, which engaged with 255 investors and advisors, representing $725bn total assets.

A new white paper from Calvert Research and Management explores racial dynamics in US healthcare and the steps institutional investors should be taking to address racism and inequality in the industry.