European utility giants launch sustainable finance hub
EDF, Orsted and ENGIE are among a group of 17 European utility companies that have teamed up to create a forum of views and ideas on how best to develop the sustainable finance market.
Representing over two-thirds of sustainable bonds issued by major European companies, the Corporate Forum on Sustainable Finance said it was well placed to develop more innovative financing instruments.
The group said it would also help set future standards and regulations, and discuss how to deeply integrate socially responsible investment criteria into assessments of companies’ financial sustainability.
"Sustainable finance is an exciting journey for both issuers and investors," EDF said.
"It is going to become an increasingly prominent issue with investors quickly adapting to these new trends and willing to allocate capital on sustainable initiatives.
"As such, the forum is an opportunity to put business at the forefront of the low-carbon and sustainability transition."
The forum defines sustainable finance instruments as efficient market-based tools that allocate economic resources where they are most needed, particularly to low-carbon and sustainable investments.
It has committed to:
• More-deeply integrate the notion of sustainability in the financial strategies of our respective companies
• Work with investors to spur the development of a more sustainable economy through innovative financing instruments
• Increase corporate presence in international and national forums shaping the development of sustainable finance markets
• Actively participate in the processes setting the future standards and regulatory frameworks for sustainable finance instruments
• Leverage its mutual expertise and promote best practices on impact reporting
• Discuss with rating agencies about more-deeply integrating SRI criteria in the assessment of companies’ long-term financial sustainability.
“The forum brings together ‘green issuers’ committed to upholding and developing sustainable finance as a force for good to combat climate change and foster a more sustainable and responsible society,” forum member SSE said.
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Chris Seekings is a reporter for TRANSFORM