News in the spotlight: $9 Trillion in Deforestation Finance - Report Exposes Global Banking Giants
A new Global Canopy report reveals that major financial institutions, including BlackRock, JP Morgan and Vanguard, have collectively provided almost $9 trillion in financing tied to deforestation-linked sectors. The findings raise urgent questions about the credibility of net-zero commitments and highlight the financial system’s continued exposure to environmental and reputational risks.
Products and Services
Nuveen Raises $1.3B for Sustainable Infrastructure Fund
Nuveen has secured $1.3 billion for a credit fund targeting sustainable power and infrastructure projects. The vehicle aims to finance renewable energy, energy efficiency, and other transition-aligned assets, reflecting growing investor demand for climate-focused opportunities. Infrastructure remains central to decarbonization, yet many projects face funding gaps due to scale and risk profiles. By channeling institutional capital into
long-term assets, the fund is expected to support both energy security and emissions reduction. Analysts note that such initiatives also serve pension funds and insurers seeking stable returns in uncertain markets. While details on specific projects remain limited, the announcement underscores a continuing shift from commitments to capital deployment. The fundraising comes amid heightened scrutiny on the credibility of “sustainable” labels, but highlights momentum in mobilizing private finance for the infrastructure backbone of the low-carbon economy (source: nuveen.com).
WTW LifeSight Commits £450M to Energy Transition Fund
LifeSight, the £24 billion defined contribution master trust operated by WTW, has committed £450 million to the Schroders Greencoat Global Renewables+ Long-Term Asset Fund (LTAF). The investment will give over 430,000 scheme members exposure to renewable energy and energy transition infrastructure, including large-scale batteries, heat networks, and green hydrogen projects. The strategy is designed to deliver returns slightly above equities while aligning with climate goals. The move follows LifeSight’s participation in the Mansion House Accord, pledging UK pension funds to increase allocations to private markets. For policymakers, the deal is seen as a signal of how pensions can channel capital into real-economy decarbonization. However, the long-term success will depend on project delivery and the ability to manage technological and regulatory risks. Still, the investment underscores how retirement savings are increasingly shaping the pace of the energy transition (source: wtwco.com).
Regulations, Law and Frameworks
Net-Zero Shipping at Risk as US Rejects Global IMO Framework
The push to decarbonize global shipping has hit a setback after the United States rejected a proposed net-zero framework from the International Maritime Organization (IMO). The initiative was seen as a breakthrough for a notoriously hard-to-abate sector, setting pathways to align shipping with global climate goals. However, Washington’s opposition casts doubt on the framework’s adoption and raises the prospect of fragmented approaches. Analysts warn that without collective agreement, efforts to scale green fuels and retrofit fleets may stall, leaving the sector vulnerable to policy inconsistencies and competitive distortions. Shipping contributes roughly 3% of global greenhouse gas emissions, making it a key focus for international climate action. The rejection reflects broader geopolitical tensions around climate policy and may complicate financing for decarbonization projects. For now, the industry faces uncertainty on how, and how fast, it can chart a net-zero course (source: dnv.com).
Assent Launches Tool to Help Companies Comply With EU Deforestation Rules
Assent has introduced a compliance solution to help companies meet requirements under the European Union’s new deforestation regulation. The rules, set to take effect in the coming years, will require firms importing or trading commodities such as soy, palm oil, cattle, and timber to prove their supply chains are not linked to deforestation or forest degradation. The regulation is among the EU’s most ambitious sustainability policies, aiming to curb global forest loss tied to European consumption. However, compliance presents significant challenges, especially for firms reliant on complex or opaque supply chains. Assent’s tool is designed to collect, standardize, and report supplier data, offering businesses a clearer view of potential risks. Critics argue that technology alone cannot ensure compliance without robust enforcement and transparency. Still, the launch highlights how ESG service providers are stepping in to bridge regulatory and data gaps (source: assent.com).
23 States Challenge SBTi Over Antitrust Risks in Net-Zero Commitments
A coalition of 23 U.S. states has raised concerns that net-zero commitments by financial institutions may breach antitrust laws. In a letter to the Science Based Targets initiative (SBTi) and several major financial firms, state attorneys general argued that collaborative pledges could amount to collusion by restricting investment in certain industries. The intervention reflects mounting political and legal scrutiny of climate-related agreements in the U.S., where some state governments view ESG initiatives as undermining free-market principles. Critics warn that such actions could weaken global climate cooperation, particularly if firms hesitate to join voluntary initiatives out of legal risk. Supporters of net-zero alliances argue that collaboration is essential to achieving systemic change in emissions-heavy sectors. The clash underscores the growing intersection of climate policy, law, and politics, highlighting the fragile balance between environmental goals and regulatory frameworks (source: sbti.com).
ESG Data & Analytics
ICE Expands Climate Risk Lens to Cover 5 Million Companies
Intercontinental Exchange (ICE) has significantly expanded its climate risk analytics, now covering more than five million companies worldwide. The move follows a data partnership with Dun & Bradstreet that integrates information on private firms alongside listed ones. By broadening its scope, ICE aims to provide investors, regulators, and corporates with deeper insights into climate-related exposures across supply chains and markets. The expansion comes as financial institutions face increasing pressure to assess and disclose their climate risks under emerging regulatory frameworks. With consistent data often cited as a barrier to effective climate strategies, the initiative highlights the growing role of third-party providers in shaping sustainable finance. While the coverage is extensive, questions remain on how firms will use this data to drive tangible change, particularly in high-emitting sectors. Still, the step marks a notable advance in ESG data availability (source: ice.com).
Real Estate at a Crossroads: Why Climate Performance Among Top Managers Varies So Widely
A new ShareAction report has exposed wide disparities in how the world’s largest real estate managers are responding to climate challenges. The study reviewed disclosures from 16 firms managing a combined $166 trillion and found most are failing to track or report portfolio emissions effectively. Notably, two-thirds did not account for construction-related emissions, despite the sector contributing around one-third of global carbon output. Some firms, such as Nrep, met all 12 of ShareAction’s climate standards, while others, including Blackstone and Greystar, fell short on every metric. The report highlights a lack of interim carbon targets and limited transparency around energy efficiency initiatives covering both landlords and tenants. These gaps raise concerns for institutional investors who rely on managers to safeguard against climate-related financial risks. The findings underscore an urgent need for greater accountability in property investment strategies (source: nordsip.com).
Net Zero Commitments
$9 Trillion in Deforestation Finance: Report Exposes Global Banking Giants
A new Global Canopy analysis has revealed that some of the world’s largest financial institutions continue to pour trillions into activities linked to deforestation. The report identifies nearly $9 trillion of financing tied to companies operating in sectors such as beef, soy, palm oil, and
timber – industries considered key drivers of forest loss. Institutions including BlackRock, JP Morgan, and Vanguard were highlighted as leading financiers of the so-called “deforestation economy.” While some banks and investors have pledged to end commodity-driven deforestation, the study suggests that commitments remain inconsistent, poorly monitored, and riddled with loopholes. The findings raise concerns over both climate and biodiversity, given forests’ role in carbon storage and ecosystem protection. The report calls for stronger accountability mechanisms and clear transition plans, warning that unchecked capital flows risk undermining global net-zero goals and exposing investors to long-term financial and reputational risks (source: globalcanopy.com).
JP Morgan Backs Forest Future With $210M Afforestation Investment
JP Morgan has committed $210 million to Chestnut Carbon, supporting one of the largest afforestation projects in the United States. The initiative will develop large-scale forests designed to generate high-quality carbon credits, contributing to both corporate decarbonization efforts and biodiversity protection. The deal highlights growing institutional appetite for nature-based climate solutions, which are increasingly seen as necessary complements to technological decarbonization. Supporters argue that afforestation can deliver co-benefits, including soil restoration and habitat creation, though questions remain around permanence, monitoring, and local community impact. JP Morgan’s financing underscores how major financial players are moving beyond rhetoric to fund carbon removal projects at scale. However, the investment also reflects ongoing debates about the credibility of carbon offsets and their role in achieving net-zero targets. For now, the project marks a high-profile vote of confidence in forestry-based climate strategies (source: jpmorgan.com).
Maritime Revolution: Seaspan & Anew Launch Low-Carbon Marine Fuel
Seaspan and Anew have partnered to supply renewable, low-carbon fuels for the shipping industry, marking a notable step in decarbonizing maritime transport. The collaboration will focus on developing scalable alternatives to conventional marine fuels, a sector that accounts for roughly 3% of global emissions. The initiative aims to accelerate adoption of renewable fuels at a time when the industry faces mounting regulatory and investor pressure to align with climate targets. By targeting cost-effective solutions and integrating renewable feedstocks, the project addresses one of the biggest challenges in shipping’s net-zero transition: availability of viable alternatives. While technical hurdles remain, such as infrastructure and global supply chain readiness, the partnership reflects growing momentum around maritime decarbonization. It also underscores the role of private sector innovation in complementing international policy frameworks, which have struggled to achieve consensus on binding shipping targets (source: seaspan.com).
ESG- and Green Bond Issuances
Qatar Joins the Race With First Sovereign Green Bonds
Qatar has issued its first sovereign green bonds, expanding the Gulf region’s presence in sustainable finance. The issuance is seen as a strategic move to diversify funding sources while signaling commitment to environmental goals. Sovereign green bonds allow governments to channel capital into renewable energy, low-carbon infrastructure, and climate adaptation projects. For Qatar, the bonds also represent a bid to align its hydrocarbon-heavy economy with global climate efforts and investor expectations. Analysts note that sovereign issuances often set benchmarks for domestic markets, potentially paving the way for corporate green bonds in the region. While the scale of Qatar’s program remains limited compared to global leaders, the move adds momentum to the Gulf’s growing interest in sustainable finance. It underscores a shift where even fossil-fuel-dependent economies are leveraging green instruments to attract international capital and strengthen their ESG credentials (source: qatar.com).
Australia’s Unique Green Bond Allocations Win Over Investors
Australia’s sovereign green bond issuance has drawn significant attention due to its distinctive allocation strategy. Unlike many programs that channel funds into standard renewable projects, Australia highlighted unique categories such as conservation initiatives and biodiversity protection. According to the Commonwealth Bank of Australia, these unusual allocations strongly resonated with investors seeking genuine impact. The issuance demonstrates how creative structuring can differentiate sovereign green bonds in a crowded market, where concerns about “greenwashing” persist. Analysts suggest that such innovation could set new benchmarks for issuers globally, encouraging them to broaden definitions of eligible projects. While demand was strong, questions remain over how effectively funds will be tracked and reported. Still, the deal highlights that originality in structuring not only attracts investors but also ensures alignment with a wider set of sustainability objectives beyond energy transition alone (source: theautralian.com).
Blue Bonds Surge in Asia, Opening a New Chapter in Sustainable Finance
Asian markets are witnessing growing momentum for blue bonds, financial instruments designed to fund sustainable ocean and water-related projects. According to asset manager Amundi, issuers across the region are increasingly exploring blue finance as a complement to green and sustainability-linked bonds. Projects funded typically include marine conservation, sustainable fisheries, and infrastructure to reduce water pollution. Analysts highlight that Asia’s leadership in this space could significantly shape the future of sustainable finance, given the region’s central role in global trade and its vulnerability to climate-related water risks. Investor appetite has been strong, reflecting a desire for diversification and new ways to address environmental challenges. However, questions remain about standardization, impact measurement, and the risk of “blue-washing.” Still, the rise of blue bonds signals an important shift toward integrating ocean health into mainstream capital markets (source: bluebonds.com).