ESG & CLIMATE CHANGE

 

Digital Report - immediate delivery to your email.

Date of Publishing: 2023.
No. of Pages: 12

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Contents:

1. The GBF for banks.

2. Bank-wide GBF implementation: risk, opportunities, dependencies, impacts. 

3. Risk.

4. Opportunities. 

5. Dependencies. 

6. Impacts. 

7. Illustrative actions by parts of the bank.

8. Exemplary key sector for banks: food and agriculture. 

9. Next steps for responsible banks.

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Digital Report - immediate delivery to your email.

Date of Publishing: 2025.
No. of Pages: 11.

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Table of Contents:
1. Introduction.   

2. Fundamentals.
A. Is there a definition of green loans? 
B. What are the advantages of entering a green loan?
C. Who can borrow a green loan?
D. What is the difference between green/social loans and sustainability-linked loans?
E. What is the difference between green loans and blue loans? 
F. Can a loan follow a combination of the GLP, the SLP and/or the SLLP?
G. How do the GLP incorporate ESG considerations? 
H. How do the GLP fit with their bond counterparts? 
I. Can a green loan be entered into by a borrower at the start of their transition journey i.e., borrowers not yet able to claim alignment with the Paris Agreement, but taking ambitious steps in that direction?
J. Can ‘pure play’ companies enter into green loans? Are all loans entered into by pure play companies automatically green loans?                                           

3. Green Loan Principles.
A. Green loan definition.
I. Can a revolving credit facility (RCF) be a green loan?
II. Can a revolving loan be recognized as green if the borrower does not have a designated eligible Green Project at the time of entering into the loan?
III. Refinancing of Projects.
a) How can borrowers be transparent about the age of refinanced assets?
b) Can eligible assets be refinanced with the proceeds of a green loan before the original borrowing has matured?
c) Can long-dated green assets be (re)financed by (multiple) consecutive green loans?
d) Can existing assets that are pledged as collateral against another borrowing be refinanced through a green loan?
B. Core components.
I. Use of proceeds.
a) If a tranche of a loan is green, is the whole loan deemed green?
b) Is disclosure of use of proceeds mandatory? 
c) Are intangible assets or expenditures (such as training, monitoring, research & development and finance cost) also eligible for green loan financing?

d) When a loan finances projects that have both social and environmental benefits, such as sustainable social housing, sustainable public transport and access to clean water, can the borrower freely choose the designation of the loan as either a green or social loan?

e) Can a borrower enter into ‘theme’ loans focusing only on one category out of a more general green, social and SLL framework?

f) Do all green loans have to be climate-related?

g) Is there an eligible Green Project category in the GLP, which would consider carbon offsetting?

II. Process for project evaluation and selection.

a) What standards might be referred to in determining whether a loan is green?

b) The GLP states that a borrower shall clearly communicate “the processes by which the borrower identifies and manages perceived, actual or potential environmental and social risks associated with the relevant project(s)”. What is expected of borrowers in this regard c) Can a green loan be made to a borrower that has low ESG ratings, exposure to controversial sustainability issues or sectors/technologies (such as fossil fuels or nuclear energy)?

III. Management of Proceeds.

a) How should you deal with surplus money arising when green loan proceeds exceed green projects?

IV. Reporting.

a) How are metrics chosen to report on the environmental impact or efficiency of projects? b) How often and for how long should a borrower be expected to report on green loans

c) Is there a standard methodology for reporting on the impact of the loan proceeds?

d) How should a borrower report impact for projects where the borrower has provided only partial financing?

e) Should a borrower report on actual and/or estimated impact?

C. Review.

I. What is an external review and why is it required?

II. Does a new external review need to be issued on a refinancing?                   

III. Do self-certified loans need to be externally reviewed before they are compared/ranked against other loans (e.g. league tables)?

D. Documentation.

I. What green clauses should be included in loan documents?________________________________________________________________________________________________

DURATION:  ONLINE

VIRTUAL DELIVERY: ZOOM / TEAMS.

You are able to access virtual courses from any location. 

INDIVIDUALLY / GROUPS

Fundamentals of Project Finance Analysis provides a solid foundation of best practice tools and techniques for fundamental credit analysis.

The course begins by introducing Project Finance Market (Renewables, Infrastructure Deals). The course then dives into risk assessment, including cashflow analysis. 

WHO SHOULD ATTEND? – Credit risk analysts, portfolio managers, investment bankers, students.

BY THE END OF THIS COURSE, YOU WILL BE ABLE TO: 

• Apply a structured approach to credit risk assessment for Project Finance Deals
• Calculate and interpret key financial ratios used in the credit rating process.
• Interpret financial statements for their effectiveness, relevance and vulnerability.
• Define key business risks (country, industry, market, consumer).
• Use data bases and public resources related to credit risk.
• Preparation of Credit Application / Annual Review Report.

Please contact us at info@redline-analytics.com to get more details.

Digital Report - immediate delivery to your email.

REPORT IN RUSSIAN LANGUAGE.

Date of Publishing: 2023.
No. of Pages: 44.

Оглавление:

1. Международная повестка.

2. Текущее состояние и проблемы рынка ESG-рейтингов.

3. Предполагаемый подход Банка России к гармонизации ESG-рейтингов.

Приложение: Рекомендации по разработке методологии и присвоению ESG-рейтингов.

Digital Report - immediate delivery to your email.

Date of Publishing: 2021.
No. of Pages:  4.

The green loan market aims to facilitate and support environmentally sustainable economic activity. The Green Loan Principles (GLP) have been developed by an experienced working party, consisting of representatives from leading financial institutions active in the global syndicated loan markets, with a view to promoting the development and integrity of the green loan product.

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Contents:

 1. Introduction.
 2. Green Loan Definition.
 3. Green Loan Principles – Core Components. 
 3.1. Use of Proceeds.
 3.2. Process for Project Evaluation and Selection.
 3.3. Management of Proceeds.
 3.4. Reporting.

 4. Review.

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Digital Report - immediate delivery to your email.

Date of Publishing: March 2021
No. of Pages: 142
Language: English

 

Oil and gas companies are coming under increasing pressure from regulators, investors, and clients to reduce the carbon footprints of their products. Developing a decarbonization strategy is an integral, multistage process, unique to each individual company and dependent on is asset structure, production technologies, investment portfolios, and regional regulations. In terms of specific initiatives addressing decaronization methods, from which companies can compose the optimal set for themselves: 1. Operational methods (Operational efficiency improvement; Recycling, reuse, and the utilization od secondary energy sources; Energy efficiency; Relationships with suppliers and subcontractors); 2. Effective monetization of methane and APG; 3. Shifting to low carbon energy sources; 4. Corporate Strategy methods (Optimized portfolios; Trading and offsetting carbon credits).

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Contents:

1. Foreword
2. Executive Summary
3. Introduction
4. GHG Emissions in the oil and gas industry
5. The decarbanization goals, strategies, and method of leading international oil and gas companies.
6. Economics of decarbanization in oil and gas sector.
7. Conditions for decarbonization in Russia and decarbonization priorities of the Russian oil and gas companies.
8. Conclusions and recommendations.

Figure 1: GHG emissions in 2017 by industry.
Figure 2: GHG emissions from oil and gas sector and oil and gas production growth.
Figure 3: Growth in unconventional oil and gas production.
Figure 4: GHG emission levels for different types of oil produced.
Figure 5: Oil and gas industry's GHG emissions structure in 2017.
Figure 6: GHG emissions by supply chain.
Figure 7: GHG emissions in refining.
Figure 8: GHG emission scopes.
Figure 9: Accounting for climate within the business strategies of companies within different sectors.
Figure 10: GHG intensity during production for leading international oil and gas companies.
Figure 11: Change in per unit of GHG emissions during production.
Figure 12: Methods of decarbonization of the oil and gas industry.
Figure 13: Methodos for the decarbonization of the oil and gas industry within the 4R framework.
Figure 14: Breakdown of global demand for CO2, 2015.
Figure 15: Adding 'recycle' to the circular carbon economy.  
Figure 16: Estimate of BECCS use potential through 2100.
Figure 17: APG flaring volumes worldwide.  
Figure 18: APG flaring volumes by countries.
Figure 19: Global methane emissions by countries.
Figure 20: Sources of methane (CH4) emissions.
Figure 21: OGCI initiative on methane emission reduction.
Figure 22: Number of tankers in the oil and gas industry by type of fuel.
Figure 23: Potential 200-2030 CapEX for oil and gas projects that fit within different IEA scenarios by resource type.
Figure 24: Top 10 companies with inorganic growth in resources and top 10 companies with inorganic reduction in resources. 
Figure 25: Proportion of leading oil and gas companies' investments in low-carbon technologies.
Figure 26: Corporate venture capital investments of oil and gas corporations from 2008 to 2017.
Figure 27: Average weighted carbon price.
Figure 28: Transacted voluntary carbon offset volumes and average prices by project type, 2019.
Figure 29: Mechanisms of mandatory and voluntary markets.
Figure 30: Overview of carbon dioxide capture technologies.
Figure 31: Different carbon dioxide handling technologies and their readiness for industrial implementation.
Figure 32: Direct air capture of carbon dioxide.
Figure 33: Closing the carbon cycle.
Figure 34: Comparison of oil production cost breakdowns (pre-tax).
Figure 35: CO2 direct emissions from primary chemical manufacturing facilities in 2015.
Figure 36: Contribution of different factors to reducing direct greenhouse gas emissions in primary chemical manufacturing  by 2050.
Figure 37: Areas of CO2 emission reduction by petrochemical sector enterprises.
Figure 38-39: Global plastic handling flows in 2018.
Figure 40: Demand for primary raw materials in PE, PP and PET manufacturing and their recycling in 2010/2035. 
Figure 41: Energy intensity of manufacturing primary chemicals under the sustainable development scenario, 2015-2030.
Figure 42: Matrix of several decarbonization technologies in oil and gas sector.
Figure 43: The role of key technologies in the reduction of average GHG emissions intensity of oil and gas production in the IEA Sustainable Development Scenario in 2018 - 2030.
Figure 44: Main technological options for GHG emissions reduction along the value chain of the oil  and gas sector.
Figure 45: Share of international credits and loans in the debt capital of individual Russian oil and gas companies.
Figure 46: Breakdown of oil and gas industry GHG emissions in the RF in 2018.
Figure 47: Operation of GAZPROM GTD and gas consumption for GTS processing needs.
Figure 48: Estimations of methane emissions in Russia.
Figure 49: APG production, combustion, and utilization in Russia.
Figure 50: Geographic distribution of average values of the Russian forest carbon balance.
Figure 51: Dynamics of carbon losses in Russia due to cutting ad fires.

Table 1: GHG emissions of the leading international oil and gas companies by scope.
Table 2: Climate targets of leading international oil ad gas companies.
Table 3: Typical operating excellence management systems elements.
Table 6: Price for different bunkering fuels in 2020.
Table 7: Price per kW of tanker capacity in 2019.
Table 8: Share of carbon allowances purchased by oil and gas companies on EU ETS market in the total volume if regulated GHG emissions.
Table 9: Comparative forecast of CO2 pricing.
Table 10: Global carbon stocks in vegetation and sold carbon pools to the depth.
Table 11: Summary of types of forest carbon finance, 2009 and 2009 - 2016 cumulative.
Table 12: Transacted voluntary carbon offset volume, value and weighted average price by project category, 2019.
Table 13: Sample projects (Shell, ConocoPhilips, Repsol, LUKOIL, Saudi Aramco, Equinor).
Table 14: CO2 capture technologies.
Table 15: SWOT analysis of CCUS.
Table 16: Examples and features of CCUS projects implemented by oil and gas companies.
Table 17: Carbon capture, transportation, utilization and storage costs.
Table 18: Polymer product recycling share.
Table 19: Evaluation of costs and volume of GHG emissions reduction by technological method.
Table 20: Current status of the main elements o the GHG emission regulation system.
Table 21: Russian oil and gas companies' long-term targets for reducing GHG emissions (as of January 2021).

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