The Responsible Finance Podcast

Blockchain platform brings the physical and digital worlds together for sustainable infrastructure

* The Sustainable Development Goals and Paris Agreement rely on the world making $6 trillion in infrastructure investment every year, funds which are difficult to channel into infrastructure   * High investment sizes, illiquid markets and a complex web of contracts limit infrastructure investment to only the largest institutional investors   * Fasset has launched a blockchain powered platform to increase liquidity and expand the investor base for infrastructure by digitizing real assets

RFI Foundation and DDCAP Group™ release a “SME market influencer” case study and podcast

RFI Foundation and DDCAP Group™ are excited to jointly announce the release of a case study [http://www.rfi-foundation.org/application/uploads/ResponsibleFinanceCaseStudy_DDCAPGroup.pdf] and podcast showing how DDCAP’s experience demonstrates how SMEs can influence others to adopt responsible finance.  Despite lacking the scale of the financial institutions with whom they work, SMEs in responsible finance can leverage their agility as an advantage and benefit from adopting sustainable and responsible practices more quickly than other institutions. For DDCAP Group™, these actions have deep roots in the history of the company but have become gradually more formalized across its governance structure.  Some of the impetus has come through their membership in the RFI Foundation and to fulfill the commitments they have made as a signatory to the Principles for Responsible Investment (PRI) and as an endorser of the Principles for Responsible Banking. One of the DDCAP’s key strengths is their integration of Sustainable and Responsible Actions (SRA) into their day-to-day business operations.  With their example, they offer a roadmap for other SMEs wishing to follow in translating principles into practice.  The roadmap outlines how SMEs can start small with top-down initiatives that gain buy-in across key stakeholders in leadership positions.  SMEs that build leadership commitment to responsible finance can open up their efforts to encourage bottom up initiatives and create a more rigorous governance structure review existing and develop new initiatives.  Through this process, SMEs can readily embed SRAs across the company to support the creation of a strong culture around common values to create new competitive advantage. Blake Goud, CEO of the RFI Foundation, commented: “By following the leadership of the amazing examples of leadership in responsible finance across RFI’s network of members, we hope to catalyze activities that support an equitable, inclusive and sustainable economy.  All of those who aspire to embody the shared values of responsible finance can establish themselves as market leaders by adopting responsible finance best practices as embodied by the actions of our members.” Stella Cox CBE, Managing Director of DDCAP Group™, added: “We see a clear need amongst financial services sector SMEs to identify an efficient route to the embodiment of sustainable and responsible practice in their culture, business and operations. Through the release of this case study and podcast, we hope that other SMEs will use the roadmap we have found to develop their own unique approach.” The case study is available from the RFI Foundation website at www.rfi-foundation.org [http://www.rfi-foundation.org] and the DDCAP Group™ website at www.ddcap.co.uk [http://www.ddcap.co.uk]. The podcast is released as an episode of the “Responsible Finance Podcast” series available on iTunes, GooglePlay, Stitcher and Podbean.

Can Islamic finance lead the responsible finance response to Covid19 in OIC countries?

This session, a replay of a webinar released on 11 May 2020 organized by RFI Foundation and Dubai Islamic Economy Development Centre (DIEDC), looks at the role for Islamic finance in the Covid-19 response.   Speakers:  * Blake Goud, CEO, RFI Foundation (Moderator) * Abdulla Al Awar, CEO, DIEDC * Ramya Gopalan, Global Innovation Coordinator and Alternative Financing Lead, IFRC * Rafe Haneef, Chief Executive Officer, Group Transaction Banking, CIMB * Khaled Al Aboodi, Managing Partner, Sustainable Finance Solutions Discussion questions: * What is the scope of the challenge from Covid-19 for OIC countries? Is the impact of Covid-19 different than Western countries? What are the major points of need that financial institutions can address? * What challenges do Islamic financial institutions face looking beyond the immediate Covid shock in OIC markets, especially in relation to expanding their focus on Maqasid/SDG/ESG related issues? * What existing needs within OIC countries has Covid-19 highlighted, and how can Islamic and responsible finance provide a unique solution? Key conclusions: * The response to Covid will come in two phases: crisis response and rebuilding * Islamic finance does not come equipped with the same intrinsic features that insulate it the way it did in the Great Financial Crisis, and it has to focus on its core ethical values to distinguish itself post-crisis * Growth of responsible finance has helped change investors' expectations to find a better balance between economic and social impact, and Islamic finance can benefit by focusing more efforts on social impact

Australia’s first sukuk mandate adds diversification to a Shariah-compliant responsible investment super fund

* Shariah screens limit the number of defensive assets available for asset managers in narrow  markets where  financial institutions represent 25-30% of the market * Investment managers can offset some of the additional risk by using ESG integration strategies, as well as investing in global sukuk * The institutionalization of Shari'ah standards gives Islamic asset managers a  leg up compared to ESG in terms of clarity about how their investment  process is affected by their approach to responsible finance

Small is beautiful for the world’s tiniest sukuk

This month, we are featuring an update to our podcast with Matthew Martin, Founder & CEO of Blossom Finance that we released in June of last year.  In this update podcast, Matthew gives us an update on Blossom Finance, which have recently closed the world’s first microsukuk. Blossom's sukuk is notable for a number of reasons, including its proof-of-concept size of IDR 702 million ($50,000) and its use of blockchain to manage the KYC, issuance, periodic payments, trading and redemption.  It also uses a mudaraba structure that replaces a fixed coupon with a periodic payments that pass-through the investor's share of profits on a monthly basis during its one-year tenor.  The funds raised in the sukuk will fund business microfinancing for MSMEs by BMT Bina Ummah, an Islamic microfinance institution in Yogyakarta.   You can find out more about Blossom Finance at www.blossomfinance.com [http://www.blossomfinance.com].