Daily ESG Briefing: Oil firm turns €4.35bn of existing debt into SDG-linked instruments

The latest developments in sustainable finance

Italian oil company Eni has amended “existing financial agreements” with banks including Barclays, BNP Paribas, Bank of America, Crédit Agricole, HSBC, Intesa Sanpaolo, Santander, SMBC and UniCredit to include the Sustainable Development Goals. In total, €4.35bn in loans, credit and derivatives have been turned into sustainability-linked instruments with targets associated with SDG7 (affordable and clean energy) and SDG13 (climate action). 

80% of companies surveyed by Willis Towers Watson say they plan to change how ESG measures are integrated into executive pay over the next three years. The 2020 ESG Survey of Board Members and Senior Executives is based on responses from non-executive and executive directors, and non-board member management executives at 168 organisations worldwide. It also highlights the challenges around using ESG metrics in incentive plans. 

ASN Bank has become the first bank in the Netherlands to join the multi-stakeholder coalition Sustainable and Responsible Business Initiative.

The Government of Thailand has raised ฿20bn in the latest tap of its sovereign green bond, and will use the proceeds to build Bangkok's Mass Rapid Transit Orange East Line and to finance social impact projects assisting with COVID-19 recovery.

The University of Cambridge Institute for Sustainability Leadership has developed a framework to help businesses move to Net Zero by 2050. Targeting Net Zero: A strategic framework for business action is based on insights from Unilever, Danone, IKEA, Interface and Lloyds Banking Group. 

UK banks come top on governance, including board independence and shareholder protection, according to EY’s Sustainable Finance Index, which compares more than 1,100 financial services firms worldwide on ESG and disclosure. However, the survey found that UK banks, which scored an aggregate of 5.6/10 for ESG activity (compared to a global average of 4.2) have a lot still to do on environmental and social issues. 

The Financial Supervisory Commission, Taiwan's securities regulator, has launched a three-year capital market roadmap, focusing on five key development strategies to strengthen the local capital market and promote ESG investment. This includes a study into the feasibility of creating a domestic ESG index made of Taiwanese companies which are currently constituents of international ESG indices.