Clean Energy Finance Corporation
Sustainable-finance development in Australia has tended to focus on the institutional sector. But a vast quantity of assets on bank balance sheets are residential mortgages, which to date have been almost untouched by environmental considerations. Clean Energy Finance Corporation and KangaNews gathered a group of market participants at the cutting edge of green home-loan development to discuss the product’s potential and its funding implications.
The global sustainable-finance market continues to innovate in the areas of product, reporting and data provision among others. In this environment, ING and KangaNews gathered leaders from the Australian and European corporate sector with other market participants to discuss how borrowers are furthering the alignment between finance and corporate-sustainability goals.
For the finance industry to support low-carbon economic transition to the fullest extent, sustainability principles must be applied across the business landscape and not just to the largest companies. However, the challenges are magnified for companies without the resources of the institutional sector.
In June, Firstmac issued Australia’s first solely green residential mortgage-backed securities deal. The local market has seen consistent though small-scale green securitisation of nonmortgage assets. Market participants are now somewhat optimistic about more supply in the mortgage space.
Discussions at the KangaNews Sustainable Debt Summit 2021 virtual event in June suggest market engagement with environmental, social and governance issues continues to deepen. Norms in sustainability-linked instruments are quickly solidifying while developments in accounting, disclosure and stakeholder engagement are also contributing to momentum.
Australia’s mutual banks are innovating in response to sector-wide issues. Participants at the KangaNews Mutual Sector Wholesale Funding Seminar 2021 – which took place in Sydney in May – discussed an evolving business and funding environment, and how mutual banks can deliver in their areas of competitive advantage.
KANGANEWS SUSTAINABLE FINANCE H2 2021
KangaNews is proud to share cutting-edge information from the global and Australasian sustainable debt market.