Weekly ESG News: Financial Services and Insurance Industry
News in the spotlight: Energy Impact Partners closes “Elevate Future Fund” with $112m
Energy Impact Partners (EIP) has raised $111.9 million for its inaugural “Elevate Future Fund I LP”. The fund aims to support and expand clean energy opportunities and investments in the US and Canada. EIP has already invested in companies such as ChargerHelp! for EV charging support, Robust.ai for AI logistics and manufacturing and Rheaply for sustainable resource sharing. Visit EIP´s website here to learn more.
Products and Service
Schroders’ Renewables and Energy Transition Fund approved by UK’s FCA
Schroders Capital has received regulatory approval from the Financial Conduct Authority to launch its second Long-Term Asset Fund. The fund will focus on renewable energy and energy transition aligned infrastructure investments. It is designed to enable a broader range of investors to invest efficiently in illiquid and private assets with longer term horizons. Read more here.
MUFG Bank launches $1bn Climate Tech Fund together with Mitsubishi
MUFG Bank, the largest bank in Japan, has partnered with Mitsubishi Corporation and Pavilion Private Equity Co. to establish the Marunouchi Climate Tech Growth Fund. The initial funding target is $400 million and the total target size is at $800 million to $1 billion. The fund, led by Marunouchi Innovation Partners, will focus on investing in climate-tech startups to support their growth.
Energy Impact Partners closes “Elevate Future Fund” with $112m
Energy Impact Partners (EIP) has raised $111.9 million for its inaugural “Elevate Future Fund I LP”. The fund aims to support and expand clean energy opportunities and investments in the US and Canada. EIP has already invested in companies such as ChargerHelp! for EV charging support, Robust.ai for AI logistics and manufacturing and Rheaply for sustainable resource sharing.
EIB approves EUR 6.6bn for Sustainable Investments
The European Investment Bank approved EUR 6.6 billion of new financing for sustainable transport, clean energy, innovation, and education investments worldwide. The total amount includes EUR998 million for corporate innovation. Overall, the financing aligns with the bank’s Energy Lending Policy, which promotes the green transition and supports the achievement of sustainable development and climate goals. Read more here.
New ADB program to mobilize billions for climate projects in Asia
Asian Development Bank (ADB) launched the “Innovative Finance Facility for Climate in Asia and the Pacific (IF-CAP) program. ADB published this ESG news last week. The program aims towards generating up to $15 billion in funding for climate projects in Asia and Pacific countries. ADB is exploring partnerships with various sources (e.g. the private sector, philanthropies) to support climate investments. Read more here.
Regulations, Government and Law
Florida incorporates anti-ESG bill into law
Florida’s Governor Ron DeSantis has signed a bill that prohibits government investment strategies that consider environmental, social and governance (ESG) standards. Criticized by the Republicans, the law will require investment decisions in the Florida Retirement System Defined Benefit Plan to prioritize the highest returns without considering ESG standards.
Australia introduces Net Zero Authority to manage transition to net zero
The government of Australia plans to establish a national Net Zero Authority, responsible for coordinating and promoting a successful economic transformation towards achieving net-zero emissions. The Authority will support workers in emissions-intensive sectors to access new employment opportunities and skills, and will coordinate government programs and policies to attract new clean energy industries. The government also wants to start additional funding to support existing and new clean energy industries, with a $400 million Industrial Transformation Stream. Read more here.
EU includes financial sector into new Corporate Sustainability Due Diligence Directive (CSDDD)
The European Parliament has added the financial sector to a new EU due diligence law aimed at promoting corporate accountability. The European Parliament’s Legal Affairs Committee included financial institutions in the proposed Corporate Sustainability Due Diligence Directive (CSDDD), meaning they will be required to carry out environmental and human rights due diligence on their clients and use their influence to curb harmful practices.
ESG Data and Analytics
Accenture announces collaboration with Cervest on AI-Powered Climate Risk Solutions
Accenture has partnered with Cervest to enhance its ability to provide clients with real-time access to climate risks in order to address asset and portfolio vulnerabilities. Through this partnership, Accenture will leverage Cervest’s Earth Science AI data modeling and machine learning capabilities to offer clients insights into physical asset risks based on various climate scenarios. Read more here.
WTW launched a new ESG initiative focused on climate risk assessment
WTW has launched an integrated Climate Risk Solutions initiative for its Corporate Risk & Broking division in North America. The new offering aims to assist clients in managing climate-related risks and will utilize WTW’s ESG resources. Read more here.
Dun & Bradstreet expands ESG rankings coverage
The company has increased its ESG Rankings coverage from 42 million to 74 million public and private companies across 185 countries. The expansion was made in response to the updated materiality weighting assigned to the company’s ESG Rankings to better align with the Sustainability Accounting Board Standards (SASB). Their rankings assist companies in improving their ESG objectives and managing supply chain risks. Read more here.
Diligent launches a new ESG Reporting Platform for Directors
Diligent has introduced a Board Reporting for ESG last week. The new platform is designed to provide directors with a clear and consistent understanding of their company’s climate performance. The new tool should help executives to comply with the upcoming SEC climate disclosure requirements and the Corporate Sustainability Reporting Directive (CSRD). The platform can be customized to capture an organization’s climate and other ESG data while providing reporting in an easily understandable format. Read more here.
Net Zero
Braemar Energy Ventures releases 2023 Impact Report
A new Impact Report was released by Braemar Energy Ventures, a venture capital firm specializing in climate tech companies. It showcases its portfolio companies’ environmental, social, and governance (ESG) initiatives and their progress towards achieving a sustainable energy future. Read more here.