Financial institutions

Financial institutions Horizons 2022 | Hogan Lovells

At our recent global conference that we hosted in partnership with Global Digital Finance, our keynote speaker suggested that the top three drivers for regulators and decision makers in financial institutions for the next few years would be ESG; restoring and building resilience to the COVID-19 pandemic; and digitization. I wholeheartedly agree and these themes are reflected in our 2022 edition of Financial Institutions Horizons. Increasingly, ESG is the lens through which investors, consumers and regulators interact with companies. From conscious consumer consumption, to investors required to disclose the environmental impact of their investments, to the desire to “build back better”, ESG touches every aspect of the lives of our businesses. Financial institutions, and the products and services they offer, play a vital role in achieving key climate-related sustainable development goals and policies, and it has become increasingly clear that this task does not fall only in the public sector. The private financial sector is at the heart of mobilizing capital to fill the current large deficit. Financing long-term sustainable growth and building a low-carbon, climate-resilient, and circular economy by channeling funds to well-governed, accountable, and ethical businesses is critical. Despite this, the securitization market lags far behind other capital market debt products in terms of ESG-themed issuance and we examine why this is the case and what could help mainstream ESG securitizations.

Please see the full post below for more information.