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illuminem summarises for you the essential news of the day. Read the full piece on Voxeurop or enjoy below:
🗞️ Driving the news: In early 2023, Italian oil giant Eni launched a €2 billion "sustainability-linked bond" promoted as a "green" investment by major Italian newspapers
• The media campaign contributed to 300,000 subscriptions, potentially misleading the public into financing fossil fuel operations
• Investigations reveal that the press coverage often lacked critical analysis and used advertising imagery of renewable energy to support Eni’s green claims
🔭 The context: While labelled as "sustainability-linked", the bond allowed flexibility in fund usage, unlike strict green bonds
• At the time, Eni (See sustainability performance) was operating 552 oil and gas projects, including large-scale exploration in Namibia and Ivory Coast
• Italian media published 40 articles and hosted 71 ads in January 2023, often repeating Eni's press releases without independent verification or critique
🌍 Why it matters for the planet: Eni's bond was portrayed as eco-friendly, despite 84% of its 2024–2027 investments being directed towards fossil fuels
• The misleading narrative may have diverted funds away from genuine renewable projects and contributed to carbon lock-in
• Scope 3 emissions, comprising 91% of Eni’s footprint, were excluded from the bond’s sustainability targets
⏭️ What's next: Calls are growing for stricter scrutiny of sustainability claims and a clearer distinction between green and sustainability-linked bonds
• Pressure is mounting on regulators like Consob to enforce transparency in environmental finance products
• Media accountability and journalistic independence are also under the spotlight as advertising revenues influence editorial choices
💬 One quote: “Green bonds are very successful because people understand them… Sustainability-linked bonds like Eni’s offer much more flexibility, which however can lead to more complexity for investors,” – Josephine Richardson, Head of Research at the Anthropocene Fixed Income Institute
📈 One stat: According to Reclaim Finance, for every €1 Eni invests in renewables, it spends €12.9 on fossil fuels
See here detailed sustainability performance of companies like Eni, Altagas, and Enel Group
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