ESG Standards in Securities Services – Resource Centre for non-ISSA Collateral
This resource centre contains key non-ISSA collateral that has been collected by the ESG Standards Subgroup. The content is organized by topic under the following sections:
The aim is to provide a destination that can be utilized by members to inform themselves and their organizations as well as add to as they find additional useful documents. Please send any new documents of interest to karen.zeeb.issa@six-group.com.
White Papers and Articles
| Title | Topic | Summary | Keywords | Date | URL |
| COP28: Fossil fuels reference ‘a key signal to asset owners’ | All | The COP28 agreement, marking the first time fossil fuels are specifically mentioned in a UN climate conference deal, calls for a global transition away from fossil fuels to achieve net-zero emissions by 2050. Notably, it emphasizes a just and equitable transition. Laura Hillis, from the Church of England Pensions Board, views this reference as a key signal for asset owners. Iancu Daramus of Fulcrum Asset Management highlights the financial materiality of climate risk, while Stephanie Pfeifer, CEO of the Institutional Investors Group on Climate Change, sees the reference to fossil fuels as a precedent for national governments. The article also discusses investor reactions, commitments made at COP28, and key announcements and initiatives. Those within the securities services industry concerned with sustainable finance, climate policy, and institutional investment strategies would find this article particularly relevant | COP28, fossil fuels, net-zero emissions, just transition, climate finance, sustainable finance, Institutional Investors Group on Climate Change, climate risk, blended finance, emerging markets, global agreements, COP29, COP30. | 14 December 2023 | COP28: Fossil fuels reference ‘a key signal to asset owners’ | News | IPE |
| ESG ratings: whose interests do they serve? | All | This article explores the growing scrutiny of ESG ratings, which assess companies’ sustainability performance. Regulators and politicians in Europe, Asia, and the US are seeking transparency and addressing potential conflicts of interest in these ratings. European lawmakers are considering legislation to enhance transparency, while US politicians are questioning ratings’ agencies’ methods. ESG ratings, unlike traditional credit ratings, are not yet subject to regulatory scrutiny on conflicts of interest and often rely on unaudited data. | ESG ratings; sustainability; transparency; conflict of interest; regulators; financial industry; | 03 October 2023 | ESG ratings: whose interests do they serve? | Financial Times (ft.com) |
| Investors turn to AI for ESG data (subscription required) | All | How AI can support companies to manage the ESG data challenges | Data; ESG Solutions; AI; Artificial intelligence; Sustainable finance | October 2023 | Investors turn to AI for ESG data | Special Report | IPE |
| Climate Related Disclosures/ESG Investing | All | Why the right name of an ESG fund is so important. Video incorporated in an introductory article. | Fund naming; ESG; SEC | 11 September 2023 | https://www.sec.gov/securities-topics/climate-esg |
| ESG Global Survey 2023 | All | This BNP Paribas survey of 420 asset owners and managers, hedge funds and private equity firms shows that institutional investors are mobilising capital towards investments that will deliver measurable positive impacts alongside financial returns. This first report focuses on ESG data and reporting, and the challenges with consistency, quality and cost of data faced by investors | ESG, Institutional investors, data, reporting, integration, vendors, net zero | September 2023 | Global ESG Survey 2023 – Report – Securities Services (cib.bnpparibas) |
| Reuters Impact: Global Sustainability Report 2023 | All | This report highlights the key challenges and disruptions that sustainability practitioners are facing in their day-to-day jobs, exploring their specific priorities, their strategies to address them, which metrics for success they are chasing, and the tools and technologies they are procuring – and planning to procure – to help them meet their business goals. | ESG, ESG data, Institutional investors, decarbonization, reporting, integration, vendors, net zero, sustainability | September 2023 | https://financialit.us17.list-manage.com/track/click?u=990cd5a224354dbacb7039aa9&id=1ddad2b771&e=d083301f18 |
| Nature in Green Finance: Bridging the gap in environmental reporting | Environmental | This report looks at how financial institutions are considering nature-related risks and opportunities alongside recent progress on climate-related initiatives and net zero targets | Nature; reporting; TCFD; climate; TNFD | 20 August 2023 | https://www.cdp.net/en/research/global-reports/financial-services-disclosure-report-2022 |
| Should investors stay and fight for green change — or divest? | Environmental | This article summarizes the findings of academic researchers who looked at the pros and cons of divestment versus engagement investment approaches and how effective they really are. Links to the full paper are included. | Divestment; engagement; voting; SEC | 6 July 2023 | https://www.ft.com/content/54750a26-1f3e-4714-9d28-b9a5e677d454 (subscription required) |
| JP Morgan Launches Sustainable Data Solutions to Simplify ESG Investments | All | JPMorgan Chase & Co’s Securities Services division is launching a sustainable investment data solutions initiative for institutional investors in a bid to make investments in ESG easier. | Environmental; social; governance; ESG; environmental social governance; JPMorgan; data; data solutions; investment data; ESG investing; US; institutional investing; | 13 June 2023 | JPMorgan launches sustainable data solutions to simplify ESG investments | Reuters |
| Biodiversity Loss: An Introduction for Risk Professionals | Environmental | This paper seeks to explain what biodiversity is and how it presents a financial risk – risks that include credit, market and operational risks. It is written specifically for finance professionals | Biodiversity; nature; measurement; disclosure; frameworks | 02 March 2023 | https://www.garp.org/sustainability-climate/biodiversity-loss-climate-risk |
| UNEP FI: The 2023 Climate Risk Landscape? | Environmental | This UN report is the latest in a series of publications that tracks the growing range of tools available for measuring and tracking climate risks of investments. The project is supported by 44 banks who the UNEP FI have convened as part of their programme | Climate risk; measurement; physical risk; transition risk | March 2023 | https://www.unepfi.org/themes/climate-change/2023-climate-risk-landscape/ |
| Climate-Related Financial Risk: An FMI’s Perspective – A DTCC Systemic Risk White Paper | Environmental | Climate change is expected to have a dramatic impact on our environment over the next few decades – and quite possibly beyond. DTCC’s white paper presents the financial market utility’s thoughts on how climate-related financial risk applies to DTCC and, by extension, other Financial Market Infrastructures (FMIs) – and how the industry currently has the necessary resources to address these risks in a proactive manner | Risk; environmental; Europe; US; systemic risk; climate change; climate related; financial risk; physical risk; climate concern; climate; FMI; business continuity; green bond; DTCC | 01 February 2023 | https://www.dtcc.com/-/media/downloads/climate-change-white-paper/Climate-Change-White-Paper-2023 |
| The Essentials of CSRD: A Quick Guide to Accelerate your Green Transition | All | What and when do you need to report in the context of CSRD? Key milestones in the CSRD and ESRS framework. Link to Greenomy | ESG reporting; CSRD; ESRS; Greenomy | 2023 | https://greenomy.io/blog/csrd-ebook |
| The Essentials of SFDR: a Complete Guide to Accelerate Your Green Transition | All | What does SFDR mean in practice? Key insights into who is affected, what and how to report, key milestones and link to Greenomy | ESG reporting; SFDR; sustainable finance; ESG transparency; Greenomy | 2023 | https://greenomy.io/blog/sfdr-ebook |
| NextGenerationEU green bonds | All | Green bonds issuance in the EU: the importance and framework of NextGenerationEU green bonds. | Next generation green bonds; NextGenerationEU, Capital markets; European Commission | 2023 | https://commission.europa.eu/strategy-and-policy/eu-budget/eu-borrower-investor-relations/nextgenerationeu-green-bonds_en |
| Sustainable Finance under Global Securities Financing | All | The role of market infrastructures in sustainable finance: triparty collateral and securities lending services in sync with ESG-oriented financing. Clearstream point of view | Sustainable finance; global securities financing; Clearstream | 2023 | https://www.clearstream.com/clearstream-en/securities-services/collateral-lending-liquidity/sustainable-finance-under-global-securities-financing |
| Non-banks contagion and the uneven mitigation of climate risk | Environmental | The paper develops a framework for the short-term modelling of market risk and shock propagation in the investment fund sector. It tackles in particular climate risk. | climate finance; investment funds; systemic risk; stress testing | December 2022 | https://www.ecb.europa.eu/pub/pdf/scpwps/ecb.wp2757~80ba1bf7dd.en.pdf |
| Financial Innovations Lab: Integrating ESG Data to Improve Risk Management and Municipal Resilience | All | Sustainable debt investments and the market for ESG data continue to expand. But without effective measuring and tracking of the ESG risks specific to each community, there is a limit to that growth. If the municipal bond market is to capitalize on this momentum, it will require coordinated efforts from all stakeholders to standardize data about material risks and look at ways to “upstream” ESG risk detection by embedding these concerns into existing government practices on budgeting, asset management, planning, and procurement. | ESG; Milken Institute; financial innovation; innovation; financial innovations lab; ESG data; data; risk; risk management; resilience; municipal resilience; ESG risk; sustainable investment; investment; investments; ESG investing; financial reporting; data aggregation; strategy; platform; data solutions; accessibility; budgeting; innovating financing; energy and environment; data repository | 25 October 2022 | https://milkeninstitute.org/report/esg-data-integration-municipal-resilience-risk |
| ESG Data Services for securities finance and collateral markets | All | As ESG investing continues to gather momentum, firms are seeking to incorporate ESG guidelines into their collateral management. The article focuses on a number of Euroclear solutions as a triparty agent. | ESG; data services; securities finance; collateral markets | 08 September 2022 | https://www.euroclear.com/newsandinsights/en/Format/Articles/esg-data-services.html |
| UNPRI: What is responsible investment? | All | A useful introduction to responsible investment provided by one of the key framework bodies operating globally. It provides summary information and further links to help readers understand the key what, why and how questions | Responsible investment; ESG; materiality | September 2022 | https://www.unpri.org/introductory-guides-to-responsible-investment/what-is-responsible-investment/4780.article |
| Pricing of green bonds: drivers and dynamics of the greenium | Environmental | The paper focuses on the greenium (a premium for green bonds) and its implications. The presence of a greenium can point investors’ confidence for green bonds, as the green bond market needs continuous growth. | climate change; sustainable finance; impact investing; corporate sustainability; greenium | September 2022 | https://www.ecb.europa.eu/pub/pdf/scpwps/ecb.wp2728~7baba8097e.en.pdf?ce6b04544ba34e74e06e8dcc5a48b874 |
| Important Role for Securities Services Firms in ESG Metrics | Data and analytics will remain a key challenge for custodians to integrate and comply with ESG regulations. There are still too many disparate sources and ESG scores. Custodians are building solutions individually and by partnering with Fintech firms. | Environmental; social; governance; ESG; environmental social governance; data; ESG scores; Europe; net zero; ESG goals; ESG targets; goals; targets; ESG fund; regulation; regulations; benchmarks; benchmark; benchmarking; securities services; Fintech; IPE | July/ August 2022 | https://www.ipe.com/esg/important-role-for-securities-services-firms-in-esg-metrics/10060773.article (subscription required) | |
| Important role for securities services firms in ESG metrics | All | An article that looks at the role of securities services or asset servicing firms with regards helping clients measure, monitor and disclose their ESG performance. It has a particular focus on the European market. | Securities services; asset servicing; compliance; regulations | July/August 2022 (Magazine) | https://www.ipe.com/esg/important-role-for-securities-services-firms-in-esg-metrics/10060773.article (subscription required) |
| Aggregate Confusion: The Divergence of ESG Ratings | All | This paper studies the variation in ESG ratings between different market providers that are commonly used by investors. It looks to understand the different methodologies employed and the challenges that a lack of transparency and consistency present. | ESG data; ratings; correlation; measurement | 23 May 2022 | https://academic.oup.com/rof/article/26/6/1315/6590670 |
| Can the SEC Make ESG Rules that are Sustainable? | All | Commissioner Roisman’s personal views on the questions one may ask, looking at ESG rules by the SEC. | ESG rules; SEC | 22 June 2021 | https://www.sec.gov/news/speech/can-the-sec-make-esg-rules-that-are-sustainable |
| Amplifying the “S” in ESG: Investor Myth Buster | Social | Investors are under increased pressure to consider the “S” (social) performance component in their investments. Yet, in the world of Environmental, Social and Governance (ESG) investing, the integration of social performance assessment has seen insufficient progress | Social; Myths; Risks; Data; Investors; Scoring | April 2021 | eSg Whitepaper (trust.org) |
| How Financial Services Can Use ESG Initiatives to Help Build a Brighter Future for All | All | As the importance of environmental and social responsibility gains momentum, the financial services industry is stepping to the forefront. Learn more about the need for action on environmental, social, and governance (ESG) topics, and explore the unique challenges, opportunities, and responsibilities that rest with the financial services industry.2021 | ESG; environmental; social; governance; environmental social governance; environmental responsibility; social responsibility; corporate social responsibility; frameworks; framework; equity; trust; stability; Deloitte; climate adaptation; additive manufacturing; role of work; inequality; climate change; climate risk; climate; risk; tools; collaboration | 2021 | https://www.deloitte.com/global/en/Industries/financial-services/perspectives/gx-esg-in-financial-services-industry.html |
News and Trends
| Title | Topic | Summary | Keywords | Date | URL |
| Business school research round-up: sustainability | All | A summary round-up item that contains links to several studies covering topics such as macroeconomic impacts of climate change & how activist investors target companies with established corporate social responsibility policies. | Climate risk; sustainability; CSR; activism | 6 July 2023 | https://www.ft.com/content/279362ad-9a11-4ee3-b201-2e53bcad660d (subscription required) |
| Opening up ESG data | All | The integration of ESG into the investment process is accelerating, yet challenges with accessing reliable ESG data continue to hinder progress. Leveraging an open-architecture approach may offer a solution. BNP Paribas point of view. | ESG; ESG data; Sustainable finance; sustainable investment; BNP Paribas | 05 August 2022 | https://securities.cib.bnpparibas/opening-up-esg-data/ |
Webinars
| Title | Topic | Summary | Keywords | Date | URL |
| Stepping up on biodiversity: how are investors taking action since COP15? | Environmental | A webinar that includes speakers from leading investors who have a strong focus on biodiversity and reversing biodiversity loss. Case studies are included to help understand different approaches currently adopted to help achieve these goals. | Biodiversity; COP15; | 18 April 2023 | https://www.unpri.org/biodiversity/stepping-up-on-biodiversity-how-are-investors-taking-action-since-cop15/11355.article |
| How Successful Leaders Will Take ESG Further: Blackrock’s Alternative Investment Chief Pam Chan | All | Pam Chan, the Chief Investment Officer of BlackRock explains what’s needed to take ESG (Environmental, Social, Governance) further. She indicates that partnership and thinking differently are key attributes to advancing ESG. | ESG; environmental; social; governance; environmental social governance; WEF; World Economic Forum; BlackRock; Meet The Leader; podcast; Spotify; alternative solutions; investing; ESG investing; innovation; thought leadership; collaboration; collaborate; video | 9 August 2022 | https://www.weforum.org/agenda/2022/08/pam-chan-blackrock-esg-how-leaders-think-innovate/ |
Regulation and Standards
| Title | Topic | Summary | Keywords | Date | URL |
| International Financial Reporting Standards (IFRS) S1: IFRS Sustainability Disclosure Standard – General Requirements for Disclosure of Sustainability-related Financial Information | Governance | The objective of IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information is to require an entity to disclose information about its sustainability-related risks and opportunities that is useful to primary users of general-purpose financial reports in making decisions relating to providing resources to the entity. | Governance; strategy; risk; risk management; IFRS; disclosure; regulation; standard; standards; reporting; ISSB | June 2023 | https://www.ifrs.org/content/dam/ifrs/publications/pdf-standards-issb/english/2023/issued/part-a/issb-2023-a-ifrs-s1-general-requirements-for-disclosure-of-sustainability-related-financial-information.pdf?bypass=on |
| International Financial Reporting Standards (IFRS) S2: IFRS Sustainability Disclosure Standard – Climate-related Disclosures | Governance | This Standard requires an entity to disclose information about climate-related risks and opportunities that could reasonably be expected to affect the entity’s cash flows, its access to finance or cost of capital over the short, medium, or long term. | Governance; strategy; risk; risk management; IFRS; disclosure; regulation; standard; standards; reporting; climate change; climate; climate-related; physical risk; transition risk; cash flow; climate resilience; carbon credit; transition plan; financed emissions; ISSB | June 2023 | https://www.ifrs.org/content/dam/ifrs/publications/pdf-standards-issb/english/2023/issued/part-a/issb-2023-a-ifrs-s2-climate-related-disclosures.pdf |
| Your guide to the European Commission’s Sustainable Finance Action Plan | All | Our quick guide summarises the latest developments of the European Commission’s Sustainable Finance Action Plan and the impact for institutional investors and their providers | European Commission, EU, Sustainable finance, taxonomy | 12 April 2023 | Your guide to the European Commission’s Sustainable Finance Action Plan – Securities Services (cib.bnpparibas) |
| Sustainable Finance Disclosure Regulation (SFDR) – regulation memo | All | Our quick guide summarises the latest phase of the EU’s SFDR regulation and the interpretations of the regulation for investors and their providers | SFDR, EU, PAI, | 16 March 2023 | Sustainable Finance Disclosure Regulation (SFDR) – regulation memo – Securities Services (cib.bnpparibas) |
| Transition Implementation Group for IFRS S1 and IFRS S2 (TIG) | Governance | The document outlines the terms of reference for the Transition Implementation Group including the group’s objective, structure and communication. The group will help with implementation of IFRS S1 and IFRS S2. | Governance; strategy; risk; risk management; IFRS; ISSB; disclosure; regulation; regulation; standard; standards; reporting; transition implementation group; TIG | 2023 | https://www.ifrs.org/content/dam/ifrs/groups/-s1-s2/terms-of-reference.pdf |