ESG in Corporate Finance

I'm happy to share the release of the #WiSER White Paper, "Igniting a Global Sustainable Economy," following the impactful discussions at the WiSER Annual Forum during Abu Dhabi Sustainability Week - ADSW 2025. This report highlights the critical role of female entrepreneurs in driving climate solutions and provides actionable strategies to bridge gender gaps in finance, scalability, AI, mentorship, and accessibility—especially for women in the Global South. Why This Matters: Women-led ventures are key to unlocking innovation in sustainability, yet systemic barriers persist. This paper outlines 5 recommendations: 🔹 Increase Gender-Focused Investment : Boost funding, financial literacy, and microloans for female-led climate projects. 🔹 Scale Women-Led Ventures : Streamline policies and partnerships to accelerate growth. 🔹 Harness AI & Digital Tools: Bridge the AI literacy and access gap to empower business expansion. 🔹 Strengthen Mentorship and Networking: Build cross-sector collaborations to provide women with the resources to succeed. 🔹 Empower Women in the Global South : Address legal and financial barriers, invest in STEM education, and improve access to markets and resources. Dive into the full report below or on Masdar (Abu Dhabi Future Energy Company)’s website for insights on turning these strategies into action: https://lnkd.in/dyAFPEP2 Thanks again to my fellow roundtable participants: Lawratou Bah, CFA, Mirella Amalia Vitale, Natasha Shenoy, Hajar Alketbi, Manal B., Mariam Alnaqbi, Shaima Al Mulla

🆕 A new research ‘Impacts of climate litigation on firm value’ has it all in its name! It demonstrates the impact of climate cases on the value of the defendant companies. 💡Let me walk you through the results: Analysis of 108 climate lawsuits against US- and European-listed companies between 2005 and 2021 has shown that: 1️⃣ Filing of a climate case leads to: ▶️ Overall, a 0.41% fall in stock returns. ▶️ For the world’s largest fossil fuel producers, this fall is higher - 0.57%. 2️⃣ Unfavourable decision leads to: ▶️ Overall, a 0.41% fall in stock returns (yes the same impacts of filing a climate case). ▶️ For the world’s largest fossil fuel producers, this increased to 1.50%. 💡The research also shows that markets respond more to novel climate cases. That is those that involve novel arguments, including ones on corporate damages for climate impacts. 👇The graphic below illustrates these impacts as follows: 🔴 Red dots indicate the actual or observed cumulative average return (CAR) during a 3-day window around the filing and decision dates as a percentage. 🔵 Blue dots, bars and whiskers indicate the mean, two-sided p66 (66th percentile) and two-sided p90 (90th percentile) of the CAAR, measured with the Capital Asset Pricing Model. Returns are weighted using the log of market value. Returns are winsorized at the 0.5% level; n indicates the number of firm-events. Congratulations to the team of authors - Misato Sato, Glen Gostlow, Catherine Higham, Joana Setzer and Frank Venmans.  #climatechange #climaterisk #climatelitigation #ESGlitigation #naturelitigation

In a world first, Iceland has become the first sovereign borrower to issue a labelled gender bond, further cementing its status as the world's leading gender-equal society. Announced late last month, the €50mn inaugural gender bond will finance initatives to provide 'decent living standards' for vulnerable women and gender minorities. The bond is expected to finance affordable housing for women on low incomes (many who are single parents). The bond is also expected to fund finance projects designed to maximise parental leave payments for both parents. Iceland remains at the top of the World Economic Forum's Global Gender Gap Index with women at high levels of political particpation, education and equal access to healthcare. As a country, Iceland continues to set new heights for gender equity and is one to watch. #Iceland #GenderEquity #EDI #GenderEquality https://lnkd.in/ezpNuzjj

A recent report, led by Greenpeace International, Milieudefensie, Harvest, and cosigned by 18 other NGOs, exposes how EU banks and other financial institutions are funding companies in industries such as soy, cattle, and palm oil, posing a grave threat to vital ecosystems. Since the 2015 Paris Climate Agreement, these banks have extended over €256 billion in credit to these sectors and have investments totaling €60 billion. Prominent banks implicated include Rabobank, BNP Paribas, Deutsche Bank, and Santander. Major players like Bunge, Cargill, JBS, and Marfrig are linked to recent ecosystem destruction in regions like the Amazon and Southeast Asia. Agricultural expansion, responsible for 80% of global deforestation, is fueled by pressure for size over sustainability, supported by EU financial institutions. Despite commitments to climate, biodiversity COP and nature action, EU banks remain complicit, risking financial standing and customer well-being. Stranded assets, particularly in regions where forests are cleared for agriculture, pose significant risks. Although the EU Deforestation Regulation marks significant progress, it notably excludes the financial sector. This report underscores the necessity for targeted regulations to cease financial support to businesses engaged in nature destruction. It's imperative that we enact laws to safeguard and rejuvenate nature, recognizing it as our ultimate wealth. We strongly urge the EU Commission to take resolute action and curb financial flows that fuel nature destruction, as financial institutions are unlikely to enact voluntary changes. #DefundNatureDestruction #NatureNow #NatureRising #RestoreNature #GreenOverGreed #BiodiversityOverBanks #ForestsOverFinance https://lnkd.in/dfF5ZDtm

Climate adaptation will not scale until we stop treating women as invisible collateral. For years, global finance has obsessed over mitigation—over carbon credits, over tech innovation, over glossy green transitions. Meanwhile, climate adaptation—the stuff that protects people, communities, and lives from what’s already here—gets left behind. Why? Because it’s “messy”. It’s local. And because it's overwhelmingly about women in the Global South—women whom capital markets have always seen as too poor, too risky, too small to matter. That’s exactly what we set out to challenge with the Women’s Livelihood Bond™ Series, and particularly WLB5—the world’s first Orange Bond. In this recent feature by GIZ and the World Economic Forum, WLB5 is recognized as a model for how gender-lens investing can reduce risk, boost resilience, and build inclusive economies in climate-vulnerable countries like Indonesia. But WLB5 wasn’t designed to be a one-off innovation. It was structured to demonstrate that investing in women is not only just—it’s investable. With a portfolio of women-focused enterprises, a tiered risk structure, and guarantees from DFC and SIDA, WLB5 showed how blended capital and gender-intentionality can work together to create a resilient, scalable asset class. This isn’t about another product. It’s about redefining the core architecture of climate finance—and making sure the people most affected by the crisis are also the ones shaping and benefiting from the solutions. Big thank you to the brilliant writers behind this piece: Sandeep Bhattacharya and Sourajit Aiyer at Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and World Economic Forum for the feature! https://lnkd.in/g-HFdG5e

Goldman Sachs decision to leave the Net-Zero Banking Alliance (#NZBA) exposes a critical disconnect between #climate urgency and #business realities. At a time when global efforts to curb #emissions must accelerate, this move raises pressing questions about corporate commitment, political influence, and accountability. The NZBA, hosted by UNEP FI, brings together 144 global banks, including JPMorgan Chase and BBVA, to align their lending portfolios with net-zero emissions by 2050. Members commit to setting 2030 targets and decarbonizing carbon-intensive sectors. Goldman’s exit, reportedly driven by U.S. political pressure and antitrust concerns, highlights how politics can obstruct climate progress rather than drive it. This decision is a reminder of the limitations of voluntary commitments. Without enforceable global frameworks, these alliances risk being undermined by external pressures. #ClimateAction cannot be optional. It must be a core business strategy, driving innovation, resilience, and long-term economic growth. Goldman’s departure is a signal to rethink how we structure and enforce climate commitments. To secure a sustainable future, we need mechanisms that hold institutions accountable and elevate climate targets from aspirations to imperatives. The cost of delay is too high—our climate and our economies depend on urgent, decisive action. https://lnkd.in/dwvCWu7h

Bank of America and Citigroup have officially left the UN-backed Net-Zero Banking Alliance (NZBA). The world’s largest climate alliance for banks. The NZBA is coalition of global banks committed to aligning their lending and investment portfolios with net-zero carbon emissions by 2050. Banks in this alliance pledge to reduce their support for industries that contribute heavily to greenhouse gas emissions (like fossil fuels) and increase funding for green initiatives. Citi was one of the founding members in 2021, marking it as a strong proponent of sustainable finance. Why Citi and BofA’s Exit Matters: Their withdrawal signals a potential retreat from aggressive climate goals in favor of maintaining relationships with traditional energy clients. When leading banks pull out, it can weaken the collective momentum of global finance aligning with sustainability goals. This is also a sign that corporate America may retreat from climate goals during Donald Trump’s second term as US president. Both banks, like others in the US, have faced increasing scrutiny from Republican lawmakers, particularly in states where fossil fuels are critical to the economy. These lawmakers argue that such alliances constrain energy security and discriminate against traditional industries, including oil and gas. Citi stated it would focus more on climate initiatives in emerging markets, suggesting a shift from the UN-led framework to independent efforts. Why You Should Care: For Climate Advocates: This development is a wake-up call about the challenges of aligning corporate and environmental goals, especially under political duress. For Investors: The shift could signal changing priorities in major banks’ strategies, affecting ESG (Environmental, Social, and Governance) investment portfolios. For Businesses: Companies reliant on fossil fuels may find easier access to financing, while those pursuing green projects could face higher hurdles. For Citizens: It reflects a broader trend where climate initiatives might take a backseat to economic or political priorities, potentially slowing global efforts to combat climate change. #ClimateChange #Banks #SustainableFinance

Two continents. Two legal realities. One climate crisis. 🌎 A stark divide is emerging in how courts on either side of the Atlantic are approaching climate action—and it’s putting global companies in a legal and strategic bind. In Europe, lawsuits are being filed against companies for not doing enough to address climate change. ING, the largest Dutch bank, is now facing legal action over the climate impact of its investment portfolio. The argument: large financial institutions must align with the Paris Agreement and take responsibility for financed emissions. Meanwhile in the U.S., the situation is inverted. Companies and nonprofits are being sued for doing too much. BlackRock and others have faced accusations of breaching fiduciary duties by factoring climate risks into investment decisions. Greenpeace was recently ordered to pay millions in a case brought by a pipeline company. The message: stay in line with fossil fuel interests—or face the consequences. This growing legal polarization reflects more than political division—it underscores the shrinking room for neutrality. Companies with operations in both regions are now navigating conflicting regulatory signals, stakeholder expectations, and legal frameworks. But staying silent is not a strategy. As expectations rise, the need for a clear, principled, and well-grounded sustainability position becomes not only a moral imperative—but a business one. Regulatory uncertainty will persist. Reputational risk will rise. And litigation—on both sides—will continue. But inaction is no longer the safest option. #sustainability #sustainable #business #esg #climatechange

𝐁𝐚𝐧𝐤𝐢𝐧𝐠'𝐬 𝐂𝐥𝐢𝐦𝐚𝐭𝐞 𝐏𝐚𝐫𝐚𝐝𝐨𝐱🌍💰 I've been watching a fascinating trend unfold in the banking sector's response to climate change. In the GCC and Middle East, we're seeing an unprecedented surge in hiring climate and sustainability specialists. FAB expanded its ESG team by 40%, Saudi National Bank is building a dedicated Sustainability Division, and QNB has established a Climate Risk Department. Yet globally, there's a troubling disconnect: 𝑾𝒉𝒊𝒍𝒆 𝒃𝒂𝒏𝒌𝒔 𝒂𝒓𝒆 𝒔𝒕𝒂𝒇𝒇𝒊𝒏𝒈 𝒖𝒑, 𝒎𝒂𝒏𝒚 𝒂𝒓𝒆 𝒔𝒊𝒎𝒖𝒍𝒕𝒂𝒏𝒆𝒐𝒖𝒔𝒍𝒚 𝒅𝒐𝒘𝒏𝒑𝒍𝒂𝒚𝒊𝒏𝒈 𝒐𝒓 𝒊𝒈𝒏𝒐𝒓𝒊𝒏𝒈 𝒄𝒓𝒊𝒕𝒊𝒄𝒂𝒍 𝒄𝒍𝒊𝒎𝒂𝒕𝒆 𝒕𝒓𝒂𝒏𝒔𝒊𝒕𝒊𝒐𝒏 𝒓𝒊𝒔𝒌𝒔. This paradox raises a question: Are these new sustainability teams empowered to address the real financial risks, or merely window dressing for investor relations? Research shows that banks with high industrial sector exposure face 50% higher loan default probabilities over the next decade. More concerning, 80% of banks don't disclose their exposure to high-carbon assets – creating a massive blind spot for investors. What I find particularly interesting is the regulatory divide: 1- 𝑬𝑼 𝒃𝒂𝒏𝒌𝒔 𝒇𝒂𝒄𝒆 𝒎𝒂𝒏𝒅𝒂𝒕𝒐𝒓𝒚 𝒄𝒍𝒊𝒎𝒂𝒕𝒆 𝒔𝒕𝒓𝒆𝒔𝒔 𝒕𝒆𝒔𝒕𝒔 𝒘𝒊𝒕𝒉 𝒆𝒙𝒕𝒆𝒏𝒅𝒆𝒅 𝒓𝒊𝒔𝒌 𝒉𝒐𝒓𝒊𝒛𝒐𝒏𝒔 2- 𝑮𝑪𝑪 𝒃𝒂𝒏𝒌𝒔 𝒂𝒓𝒆 𝒓𝒂𝒑𝒊𝒅𝒍𝒚 𝒃𝒖𝒊𝒍𝒅𝒊𝒏𝒈 𝒄𝒂𝒑𝒂𝒄𝒊𝒕𝒚 (𝒐𝒇𝒕𝒆𝒏 𝒆𝒙𝒄𝒆𝒆𝒅𝒊𝒏𝒈 𝒈𝒍𝒐𝒃𝒂𝒍 𝒈𝒓𝒐𝒘𝒕𝒉 𝒓𝒂𝒕𝒆𝒔) 3- 𝑾𝒉𝒊𝒍𝒆 𝑵𝒐𝒓𝒕𝒉 𝑨𝒎𝒆𝒓𝒊𝒄𝒂𝒏 𝒂𝒏𝒅 𝒎𝒂𝒏𝒚 𝑨𝑷𝑨𝑪 𝒊𝒏𝒔𝒕𝒊𝒕𝒖𝒕𝒊𝒐𝒏𝒔 𝒓𝒆𝒔𝒊𝒔𝒕 𝒔𝒊𝒎𝒊𝒍𝒂𝒓 𝒎𝒆𝒂𝒔𝒖𝒓𝒆𝒔. I've observed that proactive banks will capture opportunities in the green economy while laggards may face significant portfolio devaluation. What's your experience? Is your organization treating climate risk as a core financial concern or relegating it to a sustainability sideshow? #ClimateFinance #BankingTransformation #SustainableFinance #ESG #GCCBanking

Did you know that the world's largest banks have funneled over a trillion dollars into fossil fuels? ➤ In recent years, the biggest banks—including those many of us trust with our savings—have invested heavily in coal power plants and fossil fuel facilities. These investments raise a crucial question: How do these fossil fuel companies secure the funding for their projects? The answer lies with the banks, and ultimately, with us—the customers. ➤ Every time we deposit money into these banks, we unknowingly become part of the financial pipeline that fuels climate change. But here's the empowering truth: as customers, we are also stakeholders. We have a voice, and together, we can push for change. ➤ How can we create change? 📌 Collective Action: Start by reaching out. Call or write to your bank, beginning with the branch manager and escalating up the ladder. 📌 Power in Numbers: If a handful of us speak up, we might be ignored. But if thousands join in, banks will take notice. 📌 Demand Sustainable Investments: By expressing our desire for investments in renewable energy, we can shift the focus from fossil fuels to sustainable alternatives. → This isn't just about being a customer; it's about being active participants in shaping a more sustainable future. By coordinating our actions and using our voices, we can influence these financial giants to redirect their investments toward clean energy solutions. 💬 What steps can we take collectively to ensure our banks invest in a sustainable future? → Share your thoughts and let's drive meaningful change together! ♻ Repost to raise awareness about #Sustainability and #ClimateChange #SustainableFinance #FossilFuels #Banking #ClimateAction #CollectiveImpact #RenewableEnergy