Speaking to Environmental Finance, S&P Global Ratings’ Michael Wilkins, Managing Director, Environmental & Climate Risk Research, appeals for greater attention to effective disclosure of green bond issuances to ensure that their environmental objectives are met.
A report by S&P Global Ratings has found that a lack of transparency and governance measures is significantly affecting the scores of self-labelled green bond issuances under S&P Global Ratings’ Green Evaluation. The Green Evaluation scores green bonds issued to finance carbon mitigation projects according to three criteria – mitigation, governance, and transparency – before aggregating them into an overall score, on a scale of E1 (highest) to E4 (lowest). After assessing 282 green bond issuances between January 2012 and July 2017, S&P Global Ratings found that the projects they evaluated tended to fall down at the point of effective disclosure through transparency and governance measures. This lack of effective disclosure, Michael notes, is even more apparent in the wider green bond market. Improving transparency and governance is crucial to ensuring that green bonds live up to the reason for their issuance – that is, making a positive contribution towards decarbonisation.
BNY Mellon has scooped the award of Technology Project of the Year in The Banker‘s “payments” category for its global payments infrastructure. Designed to address the challenges presented by the evolving payments space, the new platform – one of BNY Mellon’s largest investments in global payments to date – is capable of processing payments in 120 currencies, and has the potential to expand this number in the future. The new infrastructure operates as a single platform geared to process payments regardless of their value, initiation method, settlement mechanism or location.
The awards celebrate the most innovative and transformational contributions to financial services technology around the world, and the winners were deemed by the judges to have the capacity to markedly improve the financial services landscape by addressing long-term problems as well as issues of emerging importance.
“Our new global payments infrastructure enables us to maintain BNY Mellon’s global payments leadership in a rapidly changing global banking environment,” said Michael Bellacosa, Managing Director and Head of Global Payments for BNY Mellon Treasury Services. “Staying ahead of the marketplace’s ‘faster, more efficient, and more data-enriched’ service expectations is a win for us, for the clients whose payments we process, and for our relationships globally with our client banks.”
To read the full award write-up, please click here (please note, login required)
Climate change is becoming a bigger concern for businesses around the world. Miroslav Petkov and Michael Wilkins at Standard & Poor’s explain that this is because scientific evidence suggests the world will experience more frequent and extreme climatic events in the future, in which companies’ existing insurance and overall disaster risk management measures could prove ineffective.
Petkov and Wilkins say that companies should prepare to be tested, mainly by improving their disclosure to allow for a more thorough assessment of the risks they face to natural catastrophes. By increasing transparency, companies could be incentivised to strengthen their resilience to the impact of climate change. The end result being that the international community, as a whole, is better sheltered.
Please click here to read the full article. (Please note this link lies behind a paywall)
IFR’sReview of the Year takes a focus on the changing face of the equities business for banks. Ian Burns, Natixis’ Head of Cash Equity, discusses the importance of transparency for regulation, and the need for banks to now show clients what they are spending their money on – whether that is on the trading and execution side, or advisory.