Regulation

Difference between Market-based and Location-based Scope 2 Emissions

When reporting on their carbon emissions organisations commonly breakdown their emissions using the scope framework: Scope 1: Direct emissions Scope 2: Indirect emissions from the purchase energy Scope 3: Other indirect emissions In brief: scope 1 relates to emissions which “occur from sources that are owned or controlled by the company” [1], scope 2 relates…

A Short Introduction to the CDP Temperature Rating

Clean and unambiguous data is vital if green and sustainable finance is to help with the climate fight. Armed with better data, individual and professional investors alike will be able to more confidently allocate capital by knowing which projects and companies have less impact on the climate and are closer to net-zero goals. Background The…

A Simple Introduction to the EU Taxonomy on Sustainable Finance

“Rules Control the Fun!” – Monica Geller, Friends The green and sustainable finance community have been crying out for concrete definitions of what counts as green finance and what does not. The belief is that being able to label investments and financial products as green will enable investors to act with confidence, and crucially this…

Introduction to Scope 1, 2, and 3 Emissions: How Companies Measure Their Carbon Emissions

“No legacy is so rich as honesty.” – William Shakespeare, All’s Well That Ends Well. Carbon transparency is about companies and other organisations openly reporting how much greenhouse gas (GHG) emissions they are responsible for and it is now a cornerstone of green finance, ESG, impact investing and sustainable finance. By easily being able to…

Sustainability Linked Bonds Part 1: An Introduction

From getting individuals to use their cars less often to persuading companies to build more renewable energy infrastructure, there are many different ways to convince people or groups of people to change their ways. Sustainability-linked bonds are potentially able to solve a persistent issue in the ESG, green, and sustainable finance world: how to further…

The Importance of Information Flow: The FCA, Green Finance and You

20th October 2019 “The customer is always right” – Harry Gordon Selfridge, 1909 Last week the UK’s Financial Conduct Authority (FCA) released a report  [1] summarising 73 responses to a 2018 discussion document on the topic of climate change and green finance [2]. The FCA is a financial regulator whose general remit includes the policing…