Clifford Chance
10 Upper Bank Street Canary Wharf
London, E14 5JJ
England
25 April 2023
25+ Speakers
Leading figures in the ESG Securitisation Sector
250 Seats
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9:00 AM - 9:10 AMWelcome Note & Opening Remarks -
9:10 AM - 9:45 AMKeynote Fireside Chat -
9:45 AM - 10:40 AMIssuer Regulatory PerspectiveFor true sale transactions, the EU ESG regulatory initiative that is most likely to affect securitisation issuers is the proposed EU Green Bond Standard. Inspired by the ICMA Green Bond Principles, is the EUGBS an appropriate regime for securitisation issuers and will it enable the full potential of ESG securitisations to be unlocked in its current form? Are the recent ICMA ‘secured green collateral bond’ and ‘secured green standard bond’ definitions helpful? Do ICMA’s Social Bond Principles adequately support the development of the social ABS sector? What is the likelihood of synthetic securitisations being included in the scope of the EUGBS and which structural features are emerging to facilitate this?
Panel Includes:
Andrew Bryan, Clifford Chance (Moderator)
Boudewijn Dierick , Auxmoney
Sjoerd Humble, Obvion
Julien Caron, Sustainable Fitch
Oliver Newman, Fidelity International
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11:05 AM - 12:00 PMInvestor Regulatory PerspectiveThe main EU regulation that establishes the framework for ESG disclosures applicable to European asset managers and investors is the Sustainable Finance Disclosure Regulation. Application of the SFDR within the securitisation market has so far largely been limited to CLOs, but what role does it play in setting a broader ESG agenda for the buy-side? What are the prospects of the SFDR being extended to other asset classes and to synthetic securitisations? How are investors approaching the differences between and applicability of various other sustainable finance regulations?
Panel Includes:
Michelle Manuel, Investec (Moderator)
Alien Pauw, PGGM
Tamar Joulia, IACPM
Julia Tsybina , Clifford Chance
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1:00 PM - 1:55 PMESG MetricsConfusion remains about which metrics to use for determining whether a securitisation is ESG-compliant. Even where a securitisation is ESG based on a use of proceeds that is determined to be environmentally beneficial or having a positive social impact, the issuer may – for reputational reasons – want to ensure that the underlying assets meet a minimal ESG standard, such as the ‘do no significant harm’ and ‘minimum social safeguard’ principles from the EU Taxonomy Regulation. What should a sustainability-related KPI framework entail and which securitisation counterparties should commit to achieving such targets? Could Principle Adverse Impact indicators be sufficient, at least in a first stage, or do investors expect issuers to report on financed and facilitated emissions in line with Scope 1, 2 and 3 definitions?
Panel Includes:
Leanne Banfield, Linklaters (Moderator)
Tina De Baere, Polus Capital
Luigi Burgoni, Intesa Sanpaolo
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1:55 PM - 2:50 PMDisclosure and ReportingInvestor desire for increased standardisation, transparency and verification – which, to an extent, would mitigate the risks of greenwashing - is juxtaposed against the risk of creating overlapping and conflicting frameworks, as well as prohibitive compliance costs. How should these considerations be navigated, in order to avoid the ESG securitisation market pulling in opposing directions? Have regulators been able to balance the need to build safeguards against greenwashing with not hampering the development of the ESG securitisation market with overwhelming regulation? How helpful are the AFME and ELFA ESG disclosure initiatives and questionnaires in this context?
Panel Includes:
Luca Bertalot , European Mortgage Federation
Robert McDonough, Angel Oak Capital Advisors
Marco Angheben, European DataWarehouse
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3:15 PM - 4:10 PMSupply and DemandEven where there are some clear examples of how securitised assets could meet ESG criteria – for example, high EPC ratings for homes financed in an RMBS or electric cars backing an auto ABS – the inventories of these assets are not yet sufficient to form the basis of a vibrant ESG securitisation market. Is the ‘use of proceeds’ paradigm the best way for the market to prioritise ESG concerns while building up a stock of ESG-aligned assets, or would a move away from a binary ESG designation to an incremental approach expand supply and demand for sustainable bonds? What should use-of-proceeds best practices entail? Is there appetite for investing in assets that are exposed to transition risks or in transactions aiming at specific SDG themes? How can exposure to physical climate risk be mitigated in securitised pools?
Panel Includes:
Adam Craig, Clifford Chance (Moderator)
Max Bronzwaer, Prime Collateralised Securities
Andrew Lennox, Federated Hermes Limited
Alex Maddox, Kensington Mortgages
Daniela Francovicchio, European Investment Fund
Sanhita Athalye, Deutsche Bank
