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Mindspace REIT Secures Rs 650-crore SLL bond from IFC

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Mindspace Business Parks REIT has secured a Rs 650 crore sustainability-linked bond from the International Finance Corporation (IFC), the private sector arm of the World Bank Group, the company announced said.

The coupon of the 7-year bond is linked to Mindspace’s commitment to achieve certain ESG targets towards building a greener eco-system.

“We are thrilled to announce another significant milestone in our sustainability journey as we become the first Indian REIT to issue sustainability-linked bonds. International Finance Corporation fully subscribed to this issuance. This follows our maiden green bond issue in March 2023. Post this issuance our cumulative green/sustainability-linked financing now stands at Rs 1,860 crore, strengthening our commitment to responsible growth,” Ramesh Nair, CEO, Mindspace Business Parks REIT, said.

It must be noted that the company has aligned its ESG strategy to 10 out of the 17 UN Sustainable Development Goals (SDGs).

Some of the ESG targets include reduction of greenhouse gas (GHG) emissions, increasing the share of green certified area for existing buildings (under operations and maintenance), and reduction in energy intensity.


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Banking, SBTi

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4 Global Banks Exit SBTi

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Four global banks including HSBC, Standard Chartered, Société Generale, and ABN AMRO have exited the Science Based Targets initiative (SBTi).

Citing sources, Reuters reported that The banks have abandoned SBTi efforts to validate their goals because of concerns it could hinder their ability to continue financing fossil fuels.

According to media reports, some banks claimed the SBTi requirements would make it more difficult for them to work with and support businesses as they navigated the climate transition, especially those clients in less developed markets who still relied on fossil fuels for their energy needs.

ESG Today wrote that the banks declared their intention to resign before the organization’s planned introduction of a new standard that will evaluate financial institutions’ efforts toward achieving net zero. The standard will have stringent limitations on financing for fossil fuels.

Interestingly, every bank is a signatory to the Net Zero Banking Alliance (NZBA), an alliance of banks organized by the UN with the mission of advancing global net zero goals through their financing operations. Members of the NZBA pledge to set 2030 financed emissions targets, initially concentrated on important emissions-intensive sectors, and to transition operational and attributable greenhouse gas (GHG) emissions from their lending and investment portfolios to align with net zero pathways by 2050.

According to media reports that cited the SBTi, the organization got hundreds of responses in response to its exposure standard for June 2023. Consequently, it has incorporated draft Fossil Fuel Finance Position Paper criteria into a pilot version of near-term criteria and recommendations for financial institutions. The finalized criteria aim to remove common barriers to adopting science-based targets and reduce reliance on fossil fuels, highlighting the importance of financial intermediaries in decarbonizing the global economy.

2015: SBTi was founded as a collaboration between CDP, WRI, WWF, and UNGC, to establish science-based environmental target setting as a standard corporate practice
2022: SBTi established standards for financial institutions’ net zero goals
June 2023: SBTi released a position paper on fossil fuel financing restrictions


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SDGs

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15% SDGs on track due to climate change and extreme weather

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Halfway through meeting the 2030 Agenda for climate goals, the world is nowhere closer to meeting the objective. Climate change is causing global extreme weather events, with record temperatures causing global damage.

A new United in Science report by the World Meteorological Organization indicates that only 15% of the Sustainable Development Goals are on track due to climate change and extreme weather. According to the report, the 2030 Agenda’s half-time point indicates the planet is far from meeting its climate goals, hindering global efforts to address hunger, poverty, ill health, and improve access to clean water and energy.

The authors highlight the potential of weather, climate, and water sciences to enhance food and water security, clean energy, health, sustainable oceans, and resilient cities.

Data

Between 1970 and 2021, nearly 12,000 disasters resulting in over 2 million deaths and 4.3 trillion in economic losses occurred. Over 90% of these reported deaths and 60% of economic losses occurred in developing economies, undermining sustainable development. Rising global temperatures and extreme weather conditions are causing a 66% chance of global near-surface temperatures exceeding 1.5°C.

Fossil fuel CO2 emissions increased by 1% globally in 2022 compared to 2021 and preliminary estimates from January-June 2023 show a further 0.3% rise, the authors noted in the report. The Paris Agreement’s temperature goal requires a 30% and 45% reduction in global greenhouse gas emissions by 2030, with CO2 emissions close to net zero by 2050.

On the other hand, the report highlights the benefits of weather predictions, integrating epidemiology and climate information, and early-warning systems in boosting food production, reducing poverty, and preventing climate-sensitive diseases.

Require real-time forecasting

For example, how weather predictions help boost food production and move closer to zero hunger. Integrating epidemiology and climate information helps understand and anticipate those diseases sensitive to climate. And early-warning systems help to reduce poverty by giving people the chance to prepare and limit the impact.

UN Secretary-General António Guterres warns that the global response is inadequate, and science is crucial for solutions. He emphasizes the importance of weather, climate, and water-related sciences in achieving the Sustainable Development Goals.

WMO Secretary-General Prof. Petteri Taalas emphasizes the science community’s unity in achieving the SDGs, highlighting the potential of groundbreaking technologies like climate modelling and AI to transform and safeguard sustainable development.

“The science continues to show that we are not doing enough to lower emissions and meet the goals of the Paris Agreement – as the world prepares for the first global stocktake at COP28, we must increase our ambition and action, and we must all do the real work to transform our economies through a just transition to a sustainable future for people and planet,” said Inger Andersen, Executive Director of the UN Environment Program.


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Technology, Cloud Computing, Carbon emissions, Sustainability

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CXOs can now track GHG emissions with new IBM tool

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IBM has launched a new tool to help enterprises track greenhouse gas (GHG) emissions across cloud services

The tool:
Now generally available, the AI-informed tool is designed to give clients access to standards-based greenhouse gas emissions data and help manage cloud carbon footprint across IBM cloud workloads.

A result of collaboration between IBM Research and Intel—the tool uses machine learning and advanced algorithms to help organizations identify emissions hot spots in their IT workload and provide insights for emissions mitigation strategy.

Key features:
Emission tracking: Customers can use filters to see and track GHG emissions associated with individual cloud services and locations, in accordance with the Greenhouse Gas Protocol.

Identifying GHG emissions hot-spots: Through monthly/quarterly or annual access to emission trends and patterns, customers can optimize workloads across locations to reduce emissions.

Leverage data for GHG emission reports: Clients can access the output and audit trails to help meet their reporting needs. The data can be integrated with IBM Envizi ESG suite3 for further analysis and reporting.

CEO perspective:
A recent market study by IBM highlights some key points:
1. 42% of CEOs said environmental sustainability is their top challenge over the next three years.
2. Organizations must balance high-performance workloads with sustainability, as 43% of CEOs use generative AI for strategic decision-making.

GM states:
“As part of any AI transformation roadmap, businesses must consider how to manage the growth of data across cloud and on-premise environments. This is especially critical today as we see organizations face increasing pressure from investors, regulators, and clients to reduce their carbon emissions,” said Alan Peacock, General Manager, IBM Cloud.


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