27 June 2024: United Nations Environment Programme Finance Initiative (UNEP FI), Climate Bonds Initiative and the Principles for Responsible Investment (PRI) have announced a collaboration to support global interoperability and implementation of sustainable finance taxonomies and other frameworks.
The collaboration aims to build consensus on taxonomy definitions and concepts among standard setters, policymakers, and taxonomy users, support the development of taxonomies and provide tools for implementation.
Climate Bonds CEO Sean Kidney said that “Taxonomies of sustainable finance are the building block of sustainable finance markets – they are, essentially, ‘shopping lists’ for investments for a sustainable future. They provide simple guidance for investors, banks and corporates, making easier for capital to flow to climate solutions.”
Liesel van Ast, Deputy Head of UNEP FI, noted that “sustainable finance taxonomies play an important role in promoting and providing a common language for sustainable finance, with over 40 jurisdictions developing and implementing them across the world. Users and developers can benefit from support to enhance usability, interoperability, and cross border capital flows. The Common Framework of Sustainable Finance Taxonomies for Latin America and the Caribbean is an example of regional collaboration to develop guidance for taxonomy interoperability across jurisdictions, and we look forward to further harmonised approaches through this collaboration.”
Nathan Fabian, PRI’s chief sustainable systems officer, said “the PRI has been engaging with investors on the implementation and use of sustainable finance taxonomies since their early inception, most notably for the EU taxonomy. Enhancing the usability and interoperability of sustainable finance taxonomies is crucial to ensure well-functioning financial markets that collectively contribute to climate and broader environmental goals”
The three organisations will support the ongoing development of taxonomies that cover emissions reduction, climate resilience and other environmental objectives, and the provision of tools that assist interoperability and usability across sustainable finance frameworks.
CBI, PRI and UNEP FI have extensive sustainable finance experience in all major economies, including technical development of taxonomies, policy implementation, and public sector project support.
The collaboration will also result in the development of a taxonomy resource centre which will provide concrete support tools for taxonomy developers and users, facilitate the integration of taxonomies within broader regulatory frameworks and work with other relevant stakeholders contributing to taxonomy developments to enable private finance for sustainable development to scale up across the globe.
Contact
Liam Jones, Communications Officer, Climate Bonds Initiative – liam.jones@climatebonds.net
About
Climate Bonds Initiative: Climate Bonds Initiative is an investor-focused not-for-profit, promoting large-scale investment in the low carbon economy. Climate Bonds undertakes advocacy and outreach to inform and stimulate the market, provides policy models and government advice, market data and analysis, and administers an international Standard & Certification Scheme for best practice in green bonds issuance. For more information, please visit www.climatebonds.net
Principles for Responsible Investment (PRI): The PRI is the world’s leading proponent of responsible investment. Supported by the United Nations, it works to understand the investment implications of environmental, social and governance (ESG) factors and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions. The PRI acts in the long-term interests of its signatories, of the financial markets and economies in which they operate and ultimately of the environment and society as a whole. Launched in New York in 2006, the PRI has grown to more than 5,000 signatories, managing over US$121 trillion. For more information visit www.unpri.org
UNEP Finance Initiative (UNEP FI): UNEP FI brings together a large network of banks, insurers and investors that collectively catalyses action across the financial system to deliver more sustainable global economies. Convened by a Geneva -based secretariat, more than 500 banks and insurers with assets exceeding US$170 trillion work together to facilitate the implementation of UNEP FI’s Principles for Responsible Banking and Principles for Sustainable Insurance, as well as three UN-convened net-zero alliances. Financial institutions work with UNEP FI on a voluntary basis, and UNEP FI helps them to apply the industry frameworks and develop practical guidance and tools to position their businesses for the transition to a sustainable and inclusive economy.