Sustainable Fitch

Our recent report analyzes greenhouse gas (GHG) emissions from entities covered by our Leveraged Finance ESG Scores team, focusing on disclosure levels across sectors and their correlation with our business activity environment Scores: https://ow.ly/OxIG50SrUmb As ESG factors become increasingly influential in investment decisions, reliable sustainability data, especially on climate and emissions, is essential. Key takeaways: - 31% of over 1500 entities disclose Scope 1 and 2 emissions, while less than 20% disclose Scope 1, 2, and 3 emissions; 52% of European entities report some climate data compared to 23% of North American ones. - There is a moderate negative correlation between industry emissions intensities and their business activity environmental Scores, with the strongest correlation in the oil & gas sector. - 27% of entities contribute to one or more UN Sustainable Development Goals (SDGs), and these entities tend to have lower GHG emissions and better ESG Scores. #ESG #SustainableFinance #ClimateChange #GHGEmissions #LeveragedFinance #DataAnalysis #UNSDGs #ESGScores

Our recent ESG Ratings Insights report focuses on our instrument ratings data on EU Taxonomy Alignment. DOWNLOAD: https://ow.ly/k7qc50SqYPm Key Takeways: - EU Taxonomy Aligned Green Bonds: 20% of rated green bonds are EU Taxonomy aligned, 90% issued by European companies. Main objectives: Climate Mitigation, Renewable Energy, Clean Transportation. - Partially Aligned Green Bonds: 36% meet Substantial Contribution Criteria but lack full alignment due to disclosure issues. 60% issued by Banks, Utilities, Real Estate; popular UoP: Green Buildings. - Importance of EU Taxonomy: Sets science-based criteria for sustainable activities, critical for net zero by 2050, influences global sustainable investments and corporate reporting. #ESG #ESGRatings #GreenBonds #EUTaxonomy #SustainableFinance #GreenFinance

Sustainable Fitch has provided its Second-Party Opinion on Acueducto Cuchillo 2, S. de R.L. de C.V.’s. (AC2) sustainability finance framework. LEARN MORE: https://ow.ly/9hJ650Ss78a Our view is that funds raised under the framework will be fully aligned with the Mexican taxonomy, which ensures that the financed activities are pertinent to the national context, addressing specific environmental and social challenges faced by Mexico. In our opinion, the sustainability finance framework’s alignment with the following is ‘Excellent’: - Green Bond Principles 2021 (ICMA) - Social Bond Principles 2023 (ICMA) - Sustainability Bond Guidelines 2021 (ICMA) - Green Loan Principles 2023 (LMA/LSTA/APLMA) - Social Loan Principles 2023 (LMA/LSTA/APLMA) AC2, an SPV responsible for the Acueducto Cuchillo II project, is constructing a 100km-long, 84-inch diameter steel pipe to increase Nuevo Leon's water extraction capacity by 5 cubic meters per second, and has committed to best practices and annual external verification of fund allocation. #SPO #SecondPartyOpinion #MexicoTaxonomy #ESG #SustainableFinance

Sustainable Fitch’s LatAm real estate report compares the sector’s ESG Ratings with other sectors, discussing regional sustainable developments, challenges, and labelled debt issuance trends: https://ow.ly/UvEN50Sqoa6 Key Highlights: - Cumulative issuance of labelled and sustainability-linked bonds by LatAm real estate entities reached USD5.3 billion from 2020 to April 2024, representing 6% of total ESG issuances in the region. - Mexican REITs and property managers are the most frequent issuers. - This trend is correlated with Mexico's need to enhance warehouse availability and efficiency due to nearshoring. #SustainableRealEstate #ESGRatings #LatAm #GreenFinance #Nearshoring #ESG #SustainableFinance

12 Transition Assessments conducted in 2023, the product’s inaugural year Sustainable Fitch’s Transition Assessment provides an independent evaluation of the credibility, completeness, and ambition of energy companies’ transition plans and actions. Learn more about Transition Assessments: https://ow.ly/4Q6550RmuuY Sustainable Fitch by the Numbers: https://ow.ly/RkMv50RmuuZ

Sustainable Fitch’s Jingwei Jia spoke on CASI’s second in-person capacity-building event in Hong Kong on the panel "Session II: Sustainability Disclosure - Challenges, Benefits and Solutions" on 24 June. “The varying market standards on ESG disclosure and eligibility of sustainable activities, along with a lack of regulatory requirements pose challenges to the assessment of Asian corporates’ sustainability performance. However, we expect to see global ESG reporting standards to converge around ISSB to standardize the reporting framework while enhancing transparency and interoperability across regions. The reporting scope is also likely to expand to cover other topics, such as nature and transition plans,” said Jingwei. Sustainable Fitch provides rigorous, human-powered sustainability research, analysis, and data for the fixed-income market. Learn more: https://ow.ly/LwmY50SpLCN #SustainableFinance #ESG #Sustainability #Asia

Sustainable Fitch's LatAm agriculture insight report compares ESG Ratings of the Latin American agriculture sector with other sectors, discussing regional sustainable developments, challenges, and labeled debt issuance trends: https://ow.ly/AioS50SqnRb Key Takeaways: - The lack of stringent criteria in taxonomies hinders decarbonization efforts in Colombian, Mexican, and Panamanian agriculture. - Extreme weather events necessitate urgent adaptation actions, with solid progress noted in Argentina, Brazil, Colombia, and Mexico. - Sustainable agriculture is integral to Brazil's climate policies, with significant funding allocated to the sector. - Argentina outlines criteria for green debt financing in sustainable farming, focusing on water conservation and resilience to climate change. - Uruguay aims to decarbonize agriculture through advanced technologies and practices while facing challenges from crop and livestock expansion. #ESG #SustainableFinance #SustainableAgriculture #ESGRatings #LatAm #ClimateChange #GreenFinance

The June update of Sustainable Fitch’s ESG Regulations and Reporting Standards Tracker, which monitors the fast-paced regulatory environment, is now available. DOWNLOAD: https://ow.ly/pMq850Spw6v - Recent updates include progress in Canada, China, the EU, India, Kenya, South Korea, and the US. - Increasing regulatory focus on supply chains, impacting the EU, US, and emerging markets like India. - ISSB standards integration is progressing in ten jurisdictions, including Australia, Brazil, and Japan. - The tracker highlights important upcoming regulations to monitor. #ESG #SustainableFinance #RegulatoryUpdates #ISSB #SupplyChain

Sustainable Fitch and Fitch Ratings had the pleasure to sponsor and speak at the “Sustainability Week 2024” event promoted by IDB Invest during 11-13 June in Manaus, Brazil. Our colleague Paula Carvalho, Director at Sustainable Fitch, spoke on the “Innovative Cross-sectoral Solutions to Build Sustainable Cities” panel, in a discussion about Economic and Social Inclusion, as well as Climate-resilient Infrastructure. Paula Carvalho also participated on the virtual panel “Sustainable Finance Scorecard for Financial Institutions” with Diego Flaiban and Colin McKee, both from IDB Invest, in a discussion about sustainability assessment tools available for market participants, including Sustainable Fitch’s ESG ratings suite. Thanks to IDB Invest for such a prestigious event, the audience in general and to everybody who joined our panels. https://ow.ly/Pige50SpvCb https://ow.ly/Q8XL50SpvCa #SustainableFitch #FitchRatings #ESG #Sustainability #IDBInvest

In the following report, our partners at #FitchRatings analyze the impact of climate transition on residential property sector dynamics, highlighting varying national approaches and categorizing countries based on their climate-driven policies. Learn more below.   #ClimateChange #SustainableLiving #RealEstate