SSE, Orsted, Iberdrola, Engie and other European companies have set up a forum aimed at developing sustainable finance as a tool to tackle climate change.
The 17 companies in the Corporate Forum on Sustainable Finance represent over two-thirds of green and sustainable bond volumes issued by European corporations.
The alliance regards sustainable finance instruments as efficient market-based tools that allocate economic resources where they are most needed, towards low-carbon and sustainable investments, which are central to the members’ corporate strategies.
One year after the Paris Green Bond Pledge, published to mark 2017 Climate Finance Day, the forum partners are pooling their resources to accomplish several aims.
These include a deeper integration of sustainability in the financial strategies of their respective companies and working with investors to spur the development of a more sustainable economy through innovative financing instruments.
The companies will also increase their presence at forums shaping sustainable finance market development.
Other objectives of the forum include active participation in processes that set standards and regulatory frameworks for sustainable finance instruments.
The members will seek opportunities to leverage mutual expertise and promote best practices on impact reporting.
They will also work with rating agencies to enable deeper integration of sustainable, responsible and impact investing criteria in the assessment of companies’ long-term financial sustainability.
Sustainable finance is becoming an increasingly prominent issue with investors taking a keen interest and willing to allocate capital on sustainable initiatives.