Bocconi Students for Sustainable Finance

The European  Sustainable Investment Conference.

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The Intersection of Securitization and Sustainability in Global Finance

The intersection of securitization and sustainability is crucial in today’s global finance. As the industry navigates environmental, social, and governance (ESG) challenges, understanding synthetic versus true sale securitization is key. The EU Taxonomy Regulation highlights factors for sustainable securitization, vital for market growth. Sun King and Citi’s $130 million off-grid solar finance deal in Kenya exemplifies this progress. Integrating ESG into credit ratings and addressing green bond challenges are essential for a sustainable financial future.

Embracing Sustainability: The Next Big Revolution in Business

Sustainability is the next major revolution in business, reshaping operations and presenting challenges. Companies can create value and gain a competitive edge by strategically transitioning to a net-zero environment. Early adoption of sustainable practices enhances reputation, customer loyalty, and resilience while mitigating risks. Balancing sustainability with profitability is key for long-term success.

Regulatory Developments in ESG Reporting and Their Implications for Businesses

The focus on Environmental, Social, and Governance (ESG) factors has surged, leading to significant regulatory changes worldwide. Key developments include the EU’s Corporate Sustainability Reporting Directive (CSRD), the US SEC’s enhanced ESG disclosure requirements, and the UK’s mandate for TCFD-aligned reporting. These regulations aim to standardize ESG reporting, ensuring transparency and accountability. While compliance may increase costs, it offers benefits such as improved risk management, better investor relations, and strategic alignment with sustainability goals. Businesses that integrate ESG into their core strategies are better positioned to thrive in this evolving landscape.

Derivative pricing using ESG

Integrating Environmental, Social, and Governance (ESG) criteria into derivative pricing is transforming financial markets. This approach reflects the significant impact of ESG factors on investment performance and risk. ESG derivatives, including Sustainability-Linked Derivatives, ESG-related credit derivatives, catastrophe derivatives, and ESG index derivatives, are becoming increasingly prevalent. Their pricing involves traditional models adjusted for ESG factors, and the regulatory landscape is evolving to support their growth. ESG derivatives offer innovative tools for managing ESG-related financial risks and promoting sustainable practices in the global economy.

Austria’s Road to the Completion of SDGs

Austria’s road to the completion of SDGs In 2021, Austria ranked 5th in the Energy Transition Index (ETI), which measures a Country’s progress in three dimensions: economic development, energy security and environmental sustainability. Only Denmark, Sweden, Norway, and Switzerland ranked better. In the Sustainable Development Goals overall ranking, Austria also ranks 5th with a score […]

Are passive funds over-investing in UK fossil fuel companies?

Are passive funds investing too much in fossil fuel companies? The think-tank Commonwealth delved into an issue regarding the financial sector, with particular attention on the UK, but that can be considered a worldwide phenomenon, starting from the US. In the paper “The Passive Revolution” by Buller and Hayes, it is shown that passive investments […]

Investors cautious about Australia’s green hydrogen ambitions

Investors cautious about Australia’s green hydrogen ambitions A particularly ambitious energy venture is currently being planned in northwest Australia as part of a pipeline of billion-dollar hydrogen projects across the country. The Asian Renewable Energy Hub is expected to cover approximately 6,500 km2 in the Pilbara mining region, with solar panels and wind turbines that […]