The REP Wrap: A2A issues first green bond using new EU standard 

Italian utility A2A has become the first company to issue a bond using the EU Green Bond Standard (GBS). The €500m, 10-year deal was more than four times oversubscribed when it was sold on Thursday, and priced at 99.08%. The EU GBS came into effect in December and bonds must allocate all proceeds to activities classified as green under the bloc’s taxonomy. Climate think-tank the Anthropocene Fixed Income Institute noted that, since most of A2A’s existing green bonds are already taxonomy-aligned, the labelled deal “may offer limited additional impact.” 

The European Commission’s advisory body has made a series of recommendations on climate transition plans. The Platform on Sustainable Finance said policymakers needed to row in with guidance on how companies should set credible climate targets and develop robust strategies. The EU also needs to develop decarbonisation pathways for key sectors, and technology roadmaps, the Platform said. In another recommendation, it called for the Commission to do more work to help companies and investors assess the risk of stranded assets and carbon lock-in. “Develop a common transition plan template for non-financial undertakings, that can be used across various pieces of EU legislation,” it added.   

Investors have overwhelmingly slapped down an attempt to get Costco to drop its Diversity, Equity & Inclusion agenda. The company said on Thursday that 98% of its shareholders voted against a request for it to explain the risks its DEI programme posed to its reputation and profits. The vote is seen as a first indicator of investor sentiment towards such proposals ahead of this year’s AGM season, where more are expected to be tabled. Meta, Amazon and Boeing have all changed their approach to DEI recently, amid backlash in the US.   

Proctor & Gamble has been accused of intentionally misleading consumers on the environmental impact of its Charmin toilet paper in a class-action lawsuit filed last week at US district court in Washington. REP has contacted the company for comment. 

RWE’s climate targets have been confirmed as Paris-aligned by the Science Based Targets initiative (SBTi). The climate verification body also validated the German utility’s target to achieve net zero by 2040. 

The Shanghai Stock Exchange (SSE), supervised by China’s securities regulator, has issued sustainability reporting guidelines that mirror standards from the ISSB. The move is part of the stock exchange’s three-year strategy to improve the disclosure of ESG data by listed companies. There has been a 6% rise in the number of SSE-listed companies publishing sustainability or social responsibility reports over the past 12 months, with more than half now providing such a document to the market. The new, voluntary guidance comes in two parts: “general requirements” and climate-specific reporting expectations. More guidance is in the pipeline, SSE said in a statement.  

Malaysia’s securities regulator has published a guide to support corporate boards adopt the country’s sustainability reporting requirements, National Sustainability Reporting Framework (NSRF), which apply to large listed and non-listed firms.  

Tryg has reportedly become the first Nordic company to publish an annual report in line with the European Sustainability Reporting Standards. The Scandanavian insurer said the process had involved “different teams, skills and disciplines across the organisation” and that “sustainability & ESG are now integral parts of Tryg’s business and customer offerings”.