Stay Connected News Round Up - April

From educational institutions to international bodies, the push towards driving sustainability strategies within finance is becoming a cornerstone of both policy and practice. These initiatives reflect a broader understanding of the critical role finance plays in achieving environmental sustainability and the strategic development of economies worldwide.

We’ve rounded up some of the key news stories from throughout April, and what they mean for our industry.

Scaling Up Sustainable Finance in LMICs

The European Commission's High-Level Experts Group presents their final recommendations on scaling up sustainable finance in low and middle-income countries (LMICs). The report outlines ten concrete recommendations, aiming to mobilise private capital for sustainable investments in Global Gateway partner countries, with an emphasis on enhanced strategic engagement models with partner countries, increased flexibility in leveraging EU financial support instruments and innovative solutions to help close the investment gap.

These recommendations are crucial amidst constrained public funds and limited concessional finance availability. European Commissioner Jutta Urpilainen underscores the commitment to mobilise private capital for sustainable investment in LMICs, aligning with the Global Gateway investment strategy.

This goes to show the importance of conscious practice worldwide, highlighting it as a gateway for the development of nations and cementing it as the future of the finance industry, a future we at Connect Earth are excited to see blossom.

Source: European Commission

Introducing Sustainable Finance Product Categorisation in the EU

The EU's Platform on Sustainable Finance is considering options for introducing a product categorisation system under the Sustainable Finance Disclosures Regulation (SFDR), aiming to address concerns regarding the application of disclosure categories. The platform is expected to deliver its feedback before the summer, and while the consultation received strong backing for the introduction of a labelling system, opinions were divided on its structure. The response suggests a potential hybrid approach combining Article 8 and Article 9 disclosures with a descriptive labelling system for retail investors. 

However, implementing these changes may pose challenges, with tensions between high-level principles and strict definitions based on KPIs. Despite uncertainties, the platform's advice is sought to navigate this complex issue, indicating the significance of sustainable finance in the EU's regulatory agenda. As discussions continue surrounding product categorisation, the importance of understanding the impact is further proven.

Source: Responsible Investor

Establishing a New Goal on Climate Finance

A pivotal phase in the global climate change agenda commenced in Cartagena, Colombia this month - to set a new goal on climate finance by the end of 2024. Plans to establish the new finance goal were initiated in 20021 at COP26, where a programme including a series of technical discussions was established to run until the end of 2024. 

The inclusivity of these discussions is highlighted, with active engagement from Parties and stakeholders. The technical expert dialogues will continue, with TED10 scheduled for the Bonn Climate Change Conference in June, followed by TED11 in the autumn. The discussions revolve around some of the most critical technical aspects of the NCQG, including its time frame, structure, amount, the mobilisation and provision of various financial sources, quality, and transparency arrangements.

Source: United Nations

Integrating Sustainable Finance into Higher Education at PMU

Sustainable finance is making its way into education being integrated into the core business curriculum at Prince Mohammad Bin Fahd University (PMU). Led by Bassem Nasri, PMU emphasises sustainability's significance, aligning with Saudi Vision 2030 and the Middle East Green Initiative, including courses on sustainable development, engaging students in field activities and awareness campaigns to help digitise finance and reduce carbon emissions. The Sustainability and Competitiveness Research Centre highlights PMU's commitment to research in green finance with initiatives like the entrepreneurship competition promoting innovation towards UN Sustainable Development Goals, enhancing student employability and having a net positive on the planet.

With more graduates entering the workforce with a drive and understanding of how to make a positive ethical impact from the office, it is increasingly important that businesses are aware of their own footprint and opportunities for improvement.

Source: Times Higher Education

As we look across the diverse efforts to integrate sustainability into finance—from academic programs that prepare the next generation of leaders, to strategic recommendations for enhancing finance in developing countries, and regulatory advancements in sustainable product categorisation—it is clear that the commitment to sustainable transformation is both deep and widespread.

We look forward to the future where initiatives like these work in collaboration with a future that thrives through increasingly conscious, efficient financial strategies.