ESG News in Brief (13/1/2023 - 21/1/2023)

International Policies

India Regulator Opts for Principles-Backed Approach on ESG Ratings

Republican Politicians Target Proxy Firms ISS, Glass Lewis over ESG

Domestic Policies

The People's Bank of China Business Management Department and Beijing Municipal Bureau of Ecology and Environment signed a memorandum of cooperation to jointly build a green financial brand in the capital

India¡¯s market regulator will adopt a principles-based, rather than prescriptive, approach in its first set of rules, expected over the next few months, for rating a company on ESG issues, two sources said.

A group of 21 Attorneys General from Republican states have sent a letter to proxy advisory firms Institutional Shareholder Services (ISS) and Glass Lewis, taking issue over the firms¡¯ support for climate and DEI-related issues at companies, and warning them that their recommendations to shareholders in these areas are in violation of their duties to consider their clients¡¯ financial interests.

On January 11, 2023, the Business Management Department of the People's Bank of China and the Beijing Municipal Bureau of Ecology and Environment signed a memorandum of cooperation. The two sides anchored on the carbon peak carbon neutral target and the green Beijing strategy, and coordinated to promote the green and low-carbon transformation and development of the capital and the high-level protection of the ecological environment.

In the future, the two sides will focus on carrying out carbon emission evaluation of enterprises and projects, establishing a green project/enterprise directory, using monetary policy tools to support the development of green industries, exploring the establishment of green assessment standards that meet the characteristics of Beijing's development and are in line with international standards, and promoting in-depth cooperation between financial institutions and green industries and projects. At the same time, it will also establish working mechanisms for communication and coordination, consultation and analysis, and result sharing, formulate a list of cooperation tasks, promote the resolution of important and difficult issues in green development and financial support, strengthen information sharing, and lay a solid foundation for effectively promoting Beijing's green development and carrying out financial support to help the capital's high-quality development

RWE¡¯s FUREC project, which aims to produce circular and green hydrogen from non-recyclable municipal solid waste in Limburg, the Netherlands, received a €108 million grant from the EU¡¯s Innovation Fund.

We think it is increasingly important to offer clients a range of investment products across asset classes delivered through a choice of product wrappers, such as ETFs, mutual funds and separately managed accounts,¡± said Robert L. Reynolds, President and Chief Executive Officer, Putnam Investments.