July saw markets respond to signals from central banks, with some clearer indications of rate cut timings for the US and Europe, while the Bank of England cut its base interest rate to 5% - the first rate cut since March 2020. Despite a political backlash against diversity, equity and inclusion (DEI) in the US, companies remain focused on their DEI commitments, and in the UK, job preservation becomes a focus in the transition to greener steel production.

Greenbank have recently joined the Business Coalition for a Global Plastics Treaty and signed the Finance Statement on Plastic Pollution, signalling our support for an international legally binding agreement to end plastic pollution. This follows our earlier engagement on the issue, collaborating with the Ellen MacArthur Foundation and as an endorser of the New Plastics Economy Global Commitment.

In this annual Engagement Review, we provide a snapshot of our activities in 2023 and outline our focus areas as we continue our work in 2024.

As Q1 ended and data from major economies suggested increasing overall resilience, equity markets posted solid monthly returns. Europe’s flagship Nature Restoration Law faced mounting pressures, the UK National Standards Body launched a consultation for a framework of overarching principles for UK nature markets, and the Council of the European Union finally voted through an agreed text for the Corporate Sustainability Due Diligence Directive.

Greenbank’s 27th annual Investor Day ‘Water under pressure’ focused on risks and opportunities in a water scarce future.

The start of the year saw optimism around the US economy contrast with pessimism in the UK, and weak growth forecasts for Europe. Transformations through artificial intelligence have raised opportunities and concerns, and renewable energy capacity has set new records.

The end of the year brought welcome gains for global equity markets as inflation concerns receded. In Dubai the final COP28 text resulted in the first explicit demand to "transition away" from fossil fuels, and a UK carbon pricing levy is set to support the drive towards decarbonisation.

Inflation fell in the US and the UK, but against a backdrop of pessimistic growth forecasts, declining living standards and rising energy costs, the Bank of England is holding firm on monetary policy. In the face of rising gas and electricity prices, the energy price cap will go up in January.