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Financing the Future: Conversations in Sustainable Finance is a Q&A series where we sit down with featured ESG experts from Sustainalytics, sharing their insights on how businesses are using finance to meet the challenges of our transition to a sustainable future. Read on to learn...

In 68% of our engagements, product governance is a significant material ESG issue, but it is our experience that most companies underestimate the materiality of this risk to investors. For some industries, product governance represents on average more than 20% of ESG risk exposure, as identified within our ESG Risk Rating framework.

Banks will play a key role in the green transition and those that commit to sustainable banking may gain an advantage over competitors, among other benefits. Indeed, banks are uniquely positioned to participate in and benefit from the transition to a green economy.

This ebook investigates the material impacts of biodiversity loss, explores which sectors are highly affected and offers five steps on how companies can measure and manage biodiversity-related issues.

Hear from our expert panel on how to maximize ESG impact from Fixed Income Engagement.

Hear from a panel of ESG thought leaders in the Asia-Pacific region on how ESG ratings have supported their sustainability and financial objectives.

Reactions to the COP26 Conference and the resulting Glasgow Climate Pact have predictably run the gamut from claims of greenwashing to the celebration of progress in the fight against climate change. Ultimately, any judgement on COP26 may be premature, as the success of the conference will best be measured in time by the extent to which commitments made are put into motion. While we wait to see the concrete actions that materialize, the past two weeks have underscored the importance of several themes that will garner increasing attention and should be considered by sustainable investors.

This infographic describes five key innovations in sustainable finance, including green deposits, sustainable deposits, green trade loans, green guarantees and letters of credit, sustainable supply chain financing, and offerings for borrowers in industries not traditionally considered green.

Highlighting the growth of the global sustainable finance market during the first half of the year and the increasing attention on biodiversity among issuer and investors.

Why do ESG research and ratings matter to financial market participants? Ulziitushig (Toshi) Batbuyan, Associate, Oil & Gas Research, talks about how investors can leverage Sustainalytics' ESG Risk Ratings in various capacities.

While many mainstream investors with an equity focus are applying ESG considerations as a part of their investment decision-making processes, how are fixed-income investors looking at ESG factors to assess corporate credit risk, bond selection, and other related activities?

Investors can examine to what extent petroleum refiners manage their Non-GHG Air Emissions and assess the quality of a company's programs to reduce air pollutants. For instance, examining all the petroleum refiners assessed by Sustainalytics, we observe that only 3% have a strong program to manage non-greenhouse gas emissions.

Explaining the differences between some of the most common sustainable finance instruments, from green bonds and loans to ESG-linked instruments such as sustainability-linked loans.

How can governments, companies and financial institutions help to mobilize finance to achieve global climate goals? Mayur Mukati of Sustainalytics’ Corporate Solutions unit discusses the role of sustainable finance in supporting a just and sustainable climate transition.

Despite the shifting timelines, we observe that the market momentum around PAIs is not diminishing, quite the contrary. Investors in the scope of the regulation are using the fourth quarter of this year to get acquainted with PAI data and set up their systems. Most investors we speak with want to be prepared in time to be able to monitor PAIs throughout 2022 and adjust their portfolios to boost their PAIs (or rather limit the downside, as these are adverse impact indicators). This means that PAIs may significantly impact stock selection and portfolio construction by fund managers keen to have ‘good’ PAI scores.

To help explain sustainability-linked loans, Sustainalytics has developed a quick start guide highlighting key considerations when entering into an SLL agreement.

This ebook highlights key issues for banks, including strategies to embed ESG into lending and investment decisions, and important innovations in sustainable finance.

As world leaders prepare to meet in Glasgow for COP26 to discuss accelerating climate action towards the goals of the Paris Agreement, an emerging energy crisis persists around the world.

The publication of these rules marks the end of a prolonged period of uncertainty in the market around final rules and timelines - assuming the RTS will be adopted as-is in a Delegated Act, which turns these rules into regulation. There are several noteworthy aspects to these rules, which we address from our perspective in this article.

According to the UN’s Convention on Biological Diversity the main drivers of biodiversity loss are habitat loss and degradation, climate change, pollution, over-exploitation, and invasive species. Habitat loss is directly linked to the conversion of natural ecosystems to agricultural lands and unsustainable use of water resources.