FINPAIR IS THE ONLY CORPORATE PROMISSORY NOTE PLATFORM WITH A COMPLETE SOLUTION FOR SUSTAINABLE FINANCE
As a result of the growing collective awareness of the finite nature of resources and the need for sustainable management, society's striving for “sustainability” is steadily increasing and the concept of sustainability is becoming increasingly important in public and media discussion. People want to live more sustainably and companies should and must play an important role in this development.
The inclusion of sustainability aspects in economic action has been in place at least since the adoption of the 17 Sustainable Development Goals of the United Nations (UN) in September 2015. These UN sustainability goals are embedded in the 2030 Agenda for Sustainable Development, which forms the framework of numerous implementation initiatives. As part of the “European Green Deal”, the members of the European Union have committed themselves to making Europe climate-neutral by 2050.
Sustainable management therefore aims to minimize environmental impacts and to use natural resources sparingly and efficiently. However, sustainability does not only include aspects of climate and environmental protection. The acronym “ESG” stands for the dimensions environmental, social and governance. Companies should ensure that their activities respect workers' rights, provide fair working conditions and support social communities. Sustainable business practices also contribute to the long-term stability of the economy, promote innovations in technologies, products and services, and thus strengthen competitiveness.
The financial sector plays a key role in the effort to reconcile economic, environmental and social goals. For this reason, various regulations have been introduced in recent years in the context of the “EU action plan to finance sustainable growth.” In particular, the action plan aims to:
diverting capital flows into sustainable investments to achieve sustainable and inclusive growth,
to manage financial risks arising from climate change, scarcity of resources, environmental degradation and social problems, and
to promote transparency and longevity in financial and economic activity
At finpair, we and our partners are committed to these goals and actively support you in your sustainable development and financing.
finpair is making a contribution to a more sustainable world with the goal of climate neutrality.
Let's do it together — finpair plants 100 trees for every successful transaction!
The finpair platform allows you to design sustainable finance debt securities in the form of:
Green or social debt securities
ESG-linked debt instruments
Rating (ESG rating-linked)
Key Performance Indicator (KPI-linked)
Second Party Opinion (SPO)
In the case of tied financial instruments, the use of funds is directly linked to the sustainability of the respective investments. Compliance must be proven or verified externally (e.g. through a second-party opinion).
Sustainability-linked debt securities reflect on the fundamentally sustainable management of the company. This involves tracking behavioral changes in an external sustainability rating or in corresponding KPIs (Key Performance Indicators). The use of financing is therefore not directly linked to sustainable investment. This approach is suitable for companies that do not make green investments or do not make completely green investments, but are gradually transforming their company or even the business model. In addition, companies avoid time-consuming controls on the use of funds.
It remains to be seen whether and to what extent the Sustainablity LinkedIn instruments will meet the expected regulatory approaches.
The EU Taxonomy Regulation, which came into force on January 1, 2022, sets the criteria for environmentally sustainable business practices for companies. The regulation defines six environmental goals; so far, detailed indicators have been set for the first two goals, climate protection and adaptation to climate change. These indicators and limits play a decisive role in evaluating the environmental impact of companies.
In future, corporate decisions must be measured by whether they contribute to meeting climate goals or at least do not counteract them. At the same time, minimum social standards, including employment law, have already been set, which should be further expanded in the future. This change means a significant workload for companies and has an impact on the evaluation of investment decisions, work and production processes.
finpair and our network of excellent cooperation partners help companies get started with their sustainability management. Our common goal is that sustainability is not seen as a burden but as an opportunity to attract investors, funding and competent specialists. Investing time, money and resources in implementing sustainability into a company's core strategy pays off and provides a clear competitive advantage. One way to implement this is to disclose pioneering ESG performance in sustainability reports.
As our cooperation partner, imug I rating offers you a comprehensive range of services in the context of advice, the preparation of a sustainability rating (ESG rating) or the preparation of a second party opinion in connection with a green or KPI-linked promissory note loan. When verifying green promissory notes, our partnership is based on the requirements of the internationally recognized Green Bonds Principles.
See for yourself: https://www.imug-rating.de
Our partner ESG.DNA is a specialized service company that helps companies develop, optimize and communicate sustainability profiles, strategies and reports to meet the ESG-related requirements of stakeholders such as customers, suppliers, capital/lenders, and employees. At the heart of the product portfolio are Starboard ESG tools, unique “software as a service” solutions for the digitized collection, preparation, analysis and evaluation of ESG data, managing sustainability development and meeting regulatory reporting requirements.
Starboard ESG Screening is a sustainability initiative that helps companies get started with their sustainability management. Our partner provides companies with a valuable initial indication of their sustainability status by answering just 12 questions.
In this context, ESG screening provides you with an indicative assessment of your company's sustainability position. You will also get an initial overview of where they stand in terms of reporting in accordance with CSRD/ESRS and EU taxonomy.
See for yourself: https://starboard-tools.com
