In the past two years, Canadian banks have increased the amount of sustainability-linked financing (SLF) they extend to oil and gas clients. SLF refers to financing whose cost changes when certain environmental, social and governance (ESG) requirements are met at the company level but does not require the funds themselves to be used for climate-friendly purposes.
Concerns about “greenwashing” have been raised by a climate campaign group after Airport Authority Hong Kong (AA), which operates the city’s international airport, raised US$4 billion by issuing a package of bonds that includes a US$1 billion five-year green bond.
Country: Canada
GTR: What does Sustainalytics do?
Ranney: Sustainalytics is a global provider of ESG data and analysis covering over 12,000 traded securities around the world. On the buy-side, we provide research and analysis services to asset owners and investment managers that are incorporating ESG into their investment management strategies. We also provide services to issuers, including the provision of second-party opinions on companies’ green and social sustainability-linked bonds and loans. Other services to issuers include the licencing of our ESG risk rating, as well as support in developing sustainable finance frameworks that financial institutions can implement across a range of asset classes.