Weekly Snippet October (24.10. – 30.10.)

Products and Service

BlackRock raises $4.5bn for latest climate-focused infrastructure fund

BlackRock has raised already $4.5 billion out of an overall $7.5 billion target for a new fund to invest in infrastructure assets aimed at climate-focused projects. The new fund invests in five sectors – energy, low carbon power, transport and logistics, regulated utilities and digital infrastructure.

Blackstone and M&T Bank provide Enstructure with $525 million sustainability-linked loan facility

Enstructure LLC announced this week that Blackstone Credit, through its Sustainable Resources Platform, and M&T Bank have provided a $525 million credit facility to refinance the company’s existing debt and support its continued growth, including strategic acquisitions and development projects. Enstructure’s credit facility is structured as a sustainability linked loan and ties the company’s cost of debt to achieving certain environmental, social, and governance (“ESG”) targets over the next few years. Read more here.

Climate Investment Funds allocated $1 billion to South Africa and Indonesia

A new financing deal worth $1 billion in concessional loans and grants was approved for South Africa and Indonesia to fund the two countries’ transition away from coal to clean energy. Read more here.

Aramco announces $1.5bn Sustainability Fund

Aramco announced this week the creation of a $1.5 billion Sustainability Fund to invest in technology that can support a stable and inclusive energy transition. It was unveiled at the sixth edition of the Future Investment Initiative (FII) and is among the largest sustainability-focused venture capital funds globally. The Fund aims to encourage investment in technology needed to support a stable and inclusive energy transition. Read more here.

$300 billion sustainable finance target announced by Societe Generale

Societe Generale strengthens its sustainability commitments. The bank will support its clients in the transition, through dedicated solutions, and a commitment to contribute to sustainable finance with €300bn by 2025. The bank is committed to decrease of its own carbon emissions by -50% between 2019 and 2030. Read more here.

Regulations and Law

ESMA to work on ESG Disclosure as a new union strategic supervisory priority

The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, is changing its Union Strategic Supervisory Priorities (USSPs) to include ESG disclosures alongside market data quality. The new priority of ESG disclosures replaces costs and performance for retail investment products and represents an important step in the implementation of the ESMA Strategy, which gives a prominent role to sustainable finance. Read more here.

FCA proposes new rules to tackle greenwashing

The measures are among several potential new rules which will protect consumers and improve trust in sustainable investment products. The work forms part of the commitment made in the FCA’s ESG Strategy and Business Plan to build trust and integrity in ESG-labelled instruments, products and the supporting ecosystem. Read more here.

ESG Data and Analytics

BNY Mellon IM research shows $100 trillion investment need to reach net zero by 2050

BNY Mellon Investment Management in partnership with Fathom Consulting, issued new research, ‘An investor’s guide to net zero by 2050’, which shows the global economy is significantly behind schedule in reaching 2050 net zero goals but can bridge the gap with $100 trillion of ‘green’ investment. Read more here.

Deloitte’s 2022 Climate Check Survey: Climate action ahead of COP27

75% of executives agree COP27 will generate the outcomes needed to conform to the Paris Agreement—and 87% say investing in environmentally sustainable practices has long-term economic benefits. Nearly 40% of organizations will accelerate sustainability efforts over the next year. 69% are executing climate mitigation and 68% are executing climate adaptation strategies, but some industries are lagging. Read more here.

Leadership Announcements

BlackRock hires McKinsey executive to head transition unit

Black Rock hired San Francisco-based Dickon Pinner, who spent the last eight years as sustainability practice global leader at McKinsey. Dickon Pinner will report into vice-chairman Philipp Hildebrand and Edwin Conway (Head of BlackRock Alternative Investors). The goal of the new unit is to come up with new investment strategies in close collaboration with other units of BlackRock.

Net Zero

Deutsche Bank publishes targets for carbon footprint reduction

Deutsche Bank announced this week net zero aligned targets for 2030 and 2050 in four carbon-intensive sectors. The bank’s goal is to reduce the amount of financed emissions (Scope 3) significantly by 2030. The targets represent a core element of Deutsche Bank’s sustainability strategy and reflect the bank’s commitments as a founding member of the Net Zero Banking Alliance (NZBA). Read more here.

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