Daily ESG Briefing: Mexico to launch first ever SDG sovereign bond

Mexico is launching the world’s first sovereign SDG bond today. The 7-year deal will focus on financing five of the Sustainable Development Goals, covering agricultural & rural development welfare, health, education, decent work, economic growth, transportation and communications. Projects will target the most vulnerable populations in Mexico. BNP Paribas is an underwriter on the deal, while Vigeo Eiris provided the Second Party Opinion. 

Quaestio Capital Management, an Italian investment firm, has awarded Impax Asset Management a €79m segregated account mandate. Impax will run the segregated account using the same process as the Impax Global Opportunities Strategy which seeks to achieve long-term capital growth through investment in companies with sustainable competitive advantages.

Exxon, The American Petroleum Institute and 29 others are being sued by the state of Delaware for their role in climate change. Attorney General Kathy Jennings has announced that Delaware will take legal action against 31 fossil fuel companies on behalf of the state’s residents and businesses. The complaint includes claims of negligent failure to warn, trespass, nuisance and consumer fraud act violations. Delaware is suffering from sea level rise, increased temperatures, heavy rain and flooding due to climate change.

The Hertfordshire Local Government Pension Scheme fund has cut fossil fuel investment by almost half. The scheme’s investments in fossil fuels fell from £94m in December 2019 to £48m in June 2020. The council had faced pressure from activists to make changes to its investment strategy, with a Divest Herts petition signed by more than 900 people.

UBS Asset Management has rolled out its Climate Aware approach across its asset classes. Originally part of its Climate Aware passive equity strategy, launched in 2017, the approach will be applied to active portfolios and sovereign bonds, among others.   

Norges Bank has published a letter to the Global Sustainability Standards Board following the board’s consultation on the GRI’s Universal Standards. The letter provides input on responsible business conduct and outlines Norges Bank’s expectation that companies disclose on human rights report on their implementation of relevant international standards.