Daily ESG Briefing: Ireland readies itself to issue green bond

The latest developments in sustainable finance

The Bank of Ireland has launched a Green Bond Framework ahead of a sovereign issuance. The framework was assessed by Sustainalytics. Proceeds will be used to finance and refinance green buildings, renewables and clean transportation. 

33 countries, including the UK, France and Germany, are being taken to the European Court of Human Rights, accused of fuelling the climate crisis. The case is being brought by six young people from Portugal, supported by Global Legal Action Network. If successful, the countries would be legally bound to ramp up emissions cuts and address global contributions to climate change, including those of their multinational companies.

Daimler has become the first European auto car firm to issue a green bond. The €1bn, 10-year deal garnered nearly €5bn in orders and sold with a coupon of 0.75%. More than half of the proceeds will be allocated to ‘clean transport’, with other projects including the upgrade and construction of factories to produce zero-emissions vehicles, and battery and fuel cell recycling. Cicero awarded the green bond framework a ‘Dark Green’ stamp.

Brussels-based European pensions umbrella body PensionsEurope has criticised proposals on ESG disclosures from the European Supervisory Authorities (ESAs), calling them out for a “lack of flexibility” and a “one-size fits all approach”. In a response to a consultation, it said the requirements “would not fit the information needs of pension funds’ members and beneficiaries”.

Fitch Ratings has launched an ESG ‘dashboard’ for financial institutions, showing ESG Relevance Scores for 1,039 banks, insurers and other financial institutions. At the end of June, the dashboard showed that ESG risks had influenced rating decisions for 20% of banks, 3% of insurers and 28% of NBFIs. Governance risks were the most relevant for rating decisions.

CBRE Global Investors has launched a white paper exploring the role of impact investing through real assets in a Covid-19 recovery. ‘Impact Investing in a Pandemic’ focuses on attainable and affordable housing tenures.