Banks Grapple with Challenges as they Seek to Implement Sustainable Finance Strategies Under pressure from clients and regulators, banks are trying to adopt new strategies designed to channel funding into sustainable economic activities. But the process has been challenging and uneven. A lack of clarity on key definitions and a shortage of necessary
European Funds Warn of Greenwashing Epidemic Amid Confusion Over Sustainability Disclosure Rules As European asset managers scramble to implement the Sustainable Finance Disclosure Regulation (SFDR), they are warning of a significant risk of greenwashing. With little clarity on what makes a fund “sustainable,” it is possible that asset managers may mislabel instruments, leading
As Bitcoin-Related ETFs Launch, Traditional Financial Firms Are Poised to Dominate the New Market With the launch of the first US-based Bitcoin futures exchange-traded funds (ETFs) in October, crypto assets took another important step toward mainstream acceptance. Many questions remain, including the timeline for ETFs that invest directly in coins (rather than futures)
Global Supply Chains are Under Pressure and it’s a Problem Around the world, supply chains are groaning under the weight of pandemic disruptions, materials shortages, and a lack of key workers. In some places, such as the UK, these problems are being exacerbated by domestic factors. At the same time, reopening is driving record levels
Blockchain Bonds Could Slash Costs But Serious Investment Is Needed to Modernize the Industry Like trade finance, bond markets have traditionally been manual, paper-intensive, and tech-shy. Outside of large, liquid markets like US Treasuries, fixed income trading is often done over the counter (OTC) and bond issuance involves large volumes of paperwork
Regulation Could Help Move Cryptocurrencies into the Mainstream but Regulators Have Been Slow to Step Up The crypto assets market is rapidly becoming too big to ignore. Cryptocurrencies such as Bitcoin are attracting significant capital inflows and major financial institutions are increasingly interested in crypto as an asset class. However, despite the growing importance
Greenwashers Beware – Global Regulators Turn Their Attention to ESG Ratings Agencies Investor appetite for sustainable assets has been growing rapidly. As institutions and organizations have increased their production of climate-friendly instruments and assets that incorporate environmental, social, and governance (ESG) concerns, the market for ESG ratings has exploded. However, in the absence of
Does Rising Inflation Herald a new Economic Reality or are Higher Prices a Blip on the Radar? After a long hiatus, inflation is back. In June, the US recorded its highest annual inflation rate since 2008 and in the EU, last year’s deflation has turned into a healthy level of inflation. The turnaround
Big Oil, Big Problems: Listed Oil Majors Are Under Fire, But Oil Production Is Rising During just a few days in May, three of the world’s largest listed oil companies were dealt powerful public blows by climate activists. In the face of shareholder revolts and legal challenges, energy supermajors including Chevron, Exxon Mobil,
Cryptocurrency vs. Central Bank Money: Does the Future of Digital Currency Lie with Central Banks? As cryptocurrencies such as Bitcoin become an increasingly established part of the financial landscape, central bankers have begun to explore the broader potential of digital currency more seriously. With a flood of white papers, task forces, and workshops,
