S&P Global Ratings speaks to Environment Analyst on its growing ESG focus and the impact of COVID-19 on sustainable investment

As S&P Global Ratings expands its London-based specialist Sustainable Finance team to incorporate ESG and climate risk, Michael Wilkins, Global Head of Analytics & Research, Sustainable Finance, and Paul Munday, Associate Director, Climate Adaptation and Resilience Expert, speak to Environment Analyst on the team’s new mandate, and how COVID-19 is impacting the ESG space.

While broadening the scope and scale of its ESG Evaluation, S&P Global Ratings’ Sustainable Finance team has also been building a team of experts in their respective fields. For instance, the latest addition to the team, Paul Munday, joined early 2020 to provide technical expertise on adaptation and resilience. Munday’s key role is to mainstream climate risks into the agency’s existing products, projects and programmes, as well as support external engagements and thought leadership.

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ICC warns major interventions needed to backstop trade recovery, covered by the specialist press

The International Chamber of Commerce (ICC) estimates a possible US$ 5 trillion of trade credit will be needed to enable a rapid recovery from the COVID-19 crisis.  In turn,  ICC warns in a new paper that proactive government interventions will be needed to ensure the market can power an economic rebound in the wake of the COVID-19 crisis.

The news was covered by TRF News, Trade Finance Global, Fintech Finance, Trade Arabia, Gulf Industry News, GTR, TXF, Hellenic Shipping News.

S&P Global Ratings’ Michael Wilkins explores the green potential for telecom bonds in Aldersgate Group’s blog

As investors and corporations alike begin to see the financial benefits of managing their environmental exposure, some unlikely sectors are beginning to engage in green finance.

With three major telecom companies – Verizon, Telefonica, and Vodafone – issuing green bonds in 2019, Michael Wilkins, Global Head of Analytics & Research, Sustainable Finance, S&P Global Ratings, considers the environmental contribution of these bonds in an article for Aldersgate Group.

While the emissions-heavy telecom sector could well benefit from green bonds as a means to invest in modernising its infrastructure and technology to reduce emissions, says Wilkins, investors have expressed concerns that these issuances may be opportunistically seeking a green label to fund projects that may lack positive environmental contribution.

Read the full article here.

In a blog for the ICC, BNY Mellon’s Joon Kim explores how banks are supporting trade during the Covid-19 pandemic

As industries go, trade is not typically known for being nimble. Yet, the unprecedented circumstances of the COVID-19 pandemic are forcing the hand of those in global trade, and banks are swiftly adapting  to ensure they can continue playing their fundamental role in enabling the wheels of trade to turn.

Though there are undoubtedly significant hurdles to overcome in the shorter term, once the world settles, we have the opportunity to harness technology to create a new norm – propelling trade finance into a new era of more efficient, streamlined, value-added transactions.

The article can be found here.

ICC Trade Register reflects on the impact of COVID-19 on global trade, covered by the specialist press

The International Chamber of Commerce (ICC) has released its 2019 Trade Register Report, revealing COVID-19’s potential to disrupt global trade, while also highlighting the low-risk nature of trade finance.

The 2019 report captures a full decade of trade finance-related data – containing nearly US$ 16 trillion of exposures from 32 million transactions across six products and 25 banks worldwide. Results indicate that default rates for trade finance products from 2008-2018 are low across all products and regions.

The report also features a number of topical contributions and commentary on global trade from leading experts – including a comprehensive analysis of COVID-19’s impact on global trade.

Read the full report here.

The news was covered by GTR, TXF, Trade Finance Global, Finextra, Business Money, TRF News, Trade Arabia, The Asian Banker, Hellenic Shipping News, Fintech Inshorts, Fintech Insight.

China after the Coronavirus crisis: Deutsche Bank’s Carmen Chan, Dr. Dirk Lubig and Ulf-Peter Noetzel write for ExportManager

Writing for ExportManager, Deutsche Bank’s Carmen Chan, Head of Trade Finance Greater China, Dr. Dirk Lubig, Head of Global Transaction Banking China and Ulf-Peter Noetzel, Chairman Trade Finance Financial Institutions, explain how China’s recovery will have a direct impact on exconomic activity across the globe.

Its experience and journey out of the crisis also provides significant foresight as to what may happen over the coming months in Europe in terms of trade flows, supply chain adaptations and financing.

Read the full article here.

Deutsche Bank goes back-to-basics with new guide to trade finance, covered by the specialist press

Deutsche Bank has released its Guide to Trade Finance, outlining the fundamental practices and rules critical to the trade finance industry’s ongoing functioning and future development.

Assembled by a group of seasoned trade finance professionals, the guide represents a reference point for current and future professionals working in the field. Covering the nuts and bolts of trade finance, the guide sheds light on everything from the rules and practices associated with traditional trade and supply chain finance to the growing interest in blockchain and sustainable trade finance, among other topics.

Read the full report here.

The news was covered by The Asset, Payment Expert, Hellenic Shipping News TRF News, Fintech Insight, Treasury Management International , CTMFile, Fintech Finance, Finextra, Fintech Bulletin.

 

Buyers turn to UniCredit’s digital dynamic discounting offering to protect supply chains

Coronavirus, and the social distancing measures put in place by governments around the world to curtail its spread, continue to impact companies of all sizes – as well as their supply chains. As such, the management of short-term liquidity and working capital has become more important than ever, particularly for smaller businesses. Adeline de Metz, UniCredit’s Global Head of Working Capital Solutions, outlines how larger buyers are supporting their supply chains by implementing dynamic discounting programmes, in Global Banking & Finance Review.

Read the full article here.

Natixis Special Report featured in Il Sole 24 Ore

A special report by Jesus Castillo – Senior Economist at Natixis – has featured in an article in Il Sole 24 Ore. The article looks at the development of Italian sovereign debt, and how it is set to evolve in the decade following the outbreak of the economic crisis caused by the Coronavirus pandemic.

According to Natixis, the Treasury accounts will not end up out of control, but it will be impossible to return to pre-crisis levels, and the role of ECB will remain fundamental.

To read the full article, please click here.

 How can you best prepare for ISO 20022? BNY Mellon’s Marcus Sehr and Isabel Schmidt explore in an article for TMI

The introduction of ISO 20022, the new payments messaging standard, is set to revolutionise the payments industry. ISO will replace existing SWIFT MT messages and their equivalents, which are unsuitable for supporting evolving transaction needs, as the format for the transfer of cross-border and high-value payment information. Crucially, the new messages will incorporate more structured, robust and comprehensive data, thereby driving enhanced speed and efficiency; reducing false positives, manual intervention and costs; and helping to pave the way to 100% straight-through processing (STP).

As these deadlines draw nearer, considerable efforts and resources from all participants will be necessary to meet the associated challenges. But, by establishing a clear transition roadmap, educating staff and upgrading their systems, banks – and their clients – can unlock the full benefits of ISO 20022.

The article can be read here