Changing finance monthly round up

Dear <<First Name>>
Here's my October round up of the latest news, ideas and initiatives related to transforming the UK financial system for people and planet. I hope you enjoy it!

Banking on the climate

Good news from Lloyds bank, which has ruled out financing for new oil and gas fields. And Munich Re is the latest insurer to take steps away from insuring oil and gas. However, the world’s 60 biggest banks have $1.35 trillion of exposures to fossil fuel assets.

Many companies are ‘green hushing’ – hiding their climate targets to avoid criticism and scrutiny. And HSBC has had ads banned because of greenwashing. The UK regulators are planning on cracking down on dubious ESG funds.

NGOs are warning that the Task Force on Nature-related Financial Disclosures – the TNFD –threatens to be a disaster.

What should central banks and regulators do if they are serious about net zero?

Bitcoin’s climate impact is more like beef than gold. ESG bonds tend to benefit companies, not the planet. And a new study shows just how badly auditors are failing to properly disclose climate risks.

Who wins and loses?

Which countries are most (and least) committed to reducing inequality? If you’re interested in the state of inequality in the UK, the new Fairness Index has some answers.

Here’s a great new report on the impact of the cost of living crisis on affordable credit.

Buy Now Pay Later – BNPL – is worsening debt problems. And loan sharks are targeting vulnerable customers.

The FCA’s annual Financial Lives survey is out - one in four UK adults are in financial difficulty or could quickly find themselves there. This is a terrible time for the UK government to be overhauling debt advice services.

Might we be facing a major global debt crisis?

Hawkish central banks are threatening the best jobs market in a generation.

Rules and those who break them

A new Bank of England study shows that ringfencing rules that separate retail and investment activities in banks have produced significant benefits for those banks (which is why they should be maintained.)

The Bank of England deputy governor is publicly opposing the plans to give the government power to overrule financial regulators.

Here’s a new report on the professionals who enable global corruption.

Financial crises

The Bank of England has confirmed that the market reaction to the mini-budget nearly led to the collapse of pension funds. Why haven’t we learned the lessons of 2008?

The IMF is warning that the next crisis could emerge in certain investment funds – those with illiquid (slow/hard to sell) assets. Or perhaps stranded fossil fuel assets could create the next ‘Lehman moment’.

How the financial sector’s (mis)understanding of risk stokes volatility.

And finally…

How Europe’s borders have changed over the past 1,000 years.

96% of the CEOs of Britain’s biggest listed companies are men.

Animal populations around the world have declined by 70% since 1970.

Are the Tories the most right-wing party in the developed world on economics?

I hope you enjoyed reading this month's edition - any feedback is welcome.

Best wishes

Jesse

Jesse Griffiths, CEO, Finance Innovation Lab
Mobile: 07740 264 639 | Twitter: @JesseLGriffiths