The rise of green and social capital – ESG-related trends for Australian private funds

Environmental, Social and Governance (ESG) is not a new concept for private funds. Most institutional investors and fund managers have had ESG policies in place for many years.

11 April 2024

Sustainability-linked derivatives - identifying the opportunity for private capital investors

The sustainable finance market is evolving at an accelerating pace. One recent trend garnering growing interest from market participants is the development of “sustainability-linked derivatives” (SLDs).

23 August 2023

Social impact investing – the best things in life are free

The 2023 Federal Budget allocated nearly $200 million over 6 years to address entrenched community disadvantage, including $11.6 million to promote social impact investment. It’s not huge, but a start.

17 July 2023

Considering Sustainability-linked Derivatives? What You Need to Know

The sustainable finance market is evolving at an accelerating pace. One recent trend garnering growing interest from market participants is the development of “sustainability-linked derivatives” (SLDs). The first SLD was issued in August 2019. In under four years, based on a market survey conducted by the International Swaps and Derivatives Association (ISDA), the number of banks, companies, consultants and other market participants worldwide that have engaged in SLD transactions has grown considerably. This insight explores the key features of SLDs, and outlines some of the documentation and potential regulatory issues for market participants that are considering engaging in SLD transactions. We also set out our key tips for navigating these issues.

21 June 2023

Pathway to sustainable development: legal risks of climate change for the finance sector

This is a result of the important role finance flows play in the global shift toward a low-carbon, climate-resilient economy[1]. The stakeholders range from pension funds to banks and import-export institutions, which not only face the continuing indirect risks arising from climate action brought against clients and investees, but are also increasingly the direct targets of climate action for their roles in financing projects associated with significant carbon emissions.

01 June 2023

How technology is transforming green finance: blockchain carbon credit bonds break new ground

Green bonds have surged in use over the past two years, but the future growth and effectiveness of the market is threatened by difficulties confirming the credit quality of an issuer and ensuring proceeds are used to fund green projects.

21 March 2023

Bridging the Gap - being responsible and creating value

Proponents of environmental, social and governance (ESG) practices have at times been accused of prioritising values over value, and concerns around the financial basis for ESG investment can become an obstacle for even the best-intentioned of businesses.

08 December 2022

Chapter 6: Green finance and carbon markets

According to the United Nations’ financing roadmap to net zero, the lion’s share of the USD32 trillion of funding needed for decarbonisation efforts in the next decade must come from the private sector.

14 September 2022