Sixteen European companies have launched a corporate forum with an aim to push forward the development of sustainable finance.
The Corporate Forum on Sustainable Finance gathers Green Issuers committed to upholding and developing sustainable finance as a critical tool to fight climate change and foster a more sustainable and responsible society.
The founding companies include EDF, EDP, ENEL, ENGIE, Ferrovie Dello Stato Italiane, Iberdrola, Icade, Ørsted, RATP, SNCF Réseau, Société du Grand Paris, SSE, Tennet, Terna, Tideway and Vasakronan.
The companies said they want to expand the commitments sealed under the Paris Green Bond Pledge in 2017, such as integrate sustainability in financial strategies, increase corporate presence in forums shaping the development of sustainable finance markets, as well as leverage on mutual expertise and promote best practices on impact reporting.
The parties aim to contribute towards the development of a broader set of financial market instruments under the umbrella of sustainable finance such as green and sustainable bonds and loans, credit facilities, as well as other sustainable financing tools recognizing the sustainability of the issuers’ business model.
According to Ørsted, the forum sees sustainable finance instruments as efficient market-based tools that allocate the economic resources where they are most needed, especially to low-carbon and sustainable investments.
Sustainable finance is expected to become an increasingly prominent issue with investors adapting to new trends and willing to allocate capital on sustainable initiatives, and thus the forum is an opportunity to put business at the forefront of the low carbon and sustainability transition, the Danish company said.