Weekly ESG News: Financial Services and Insurance Industry
News in the spotlight: HSBC AM closes energy transition infrastructure deal in APAC
HSBC Asset Management’s Asia-Pacific energy transition team has completed its first deal acquiring the solar photovoltaic power project developer Tekoma Energy. The investment is funded using HSBC AM’s internal capital sources. The deal which includes both an undisclosed initial acquisition price and further funding for new projects aims to build a significant project portfolio. The energy transition investment team at HSBC AM is also actively exploring opportunities in the wind and EV charging sectors, as it considers options for expanding its strategy to clients.
Weekly Sustainable Finance Newsletter 33/2023
ESG News of the last week in detail
Products and Service
JP Morgan launched two new actively-managed Paris-aligned ETFs
JP Morgan Asset Management (JPMAM) has launched two new Paris-Aligned Benchmark (PAB) ETFs tracking US and global equities. These ETFs use active management based on the Research Enhanced Index strategy and include ESG and PAB criteria. They aim to surpass sustainable company universes while aligning with the decarbonization goals of the Paris Agreement. The ETFs will exclude controversial sectors and hold Article 9 classification under SFDR.
HSBC AM closes energy transition infrastructure deal in APAC
HSBC Asset Management’s Asia-Pacific energy transition team has completed its first deal acquiring the solar photovoltaic power project developer Tekoma Energy. The investment is funded using HSBC AM’s internal capital sources. The deal which includes both an undisclosed initial acquisition price and further funding for new projects aims to build a significant project portfolio. The energy transition investment team at HSBC AM is also actively exploring opportunities in the wind and EV charging sectors, as it considers options for expanding its strategy to clients.
ESG Data and Analytics
S&P Global introduces new risk assessment for nature & biodiversity
S&P Global’s Sustainable1 has unveiled a fresh approach to environmental investment with its Nature & Biodiversity Risk assessment for investors. This service employs a comprehensive dataset to evaluate and manage nature-related risks in portfolios, featuring the innovative Ecosystem Footprint metric. Aligned with the Kunming-Montreal Global Biodiversity Framework and the Taskforce on Nature-related Financial Disclosures approach, it enhances understanding of portfolio impacts on nature.
Leadership Announcements
Charlie Gailliot joins KKR as co-head for the firm's global climate strategy
Global investment firm KKR is strengthening its climate investment focus with the appointment of Charlie Gailliot as co-head of its global climate strategy, alongside Emmanuel Lagarrigue and Neil Arora. With over 20 years of private markets investment experience at Goldman Sachs, Gailliot joins the team to accelerate the transition to a low-carbon economy. Managing over $54 billion in infrastructure and energy assets, KKR has a history of partnerships with companies like NextEra Energy and Virescent Infrastructure.
Gresham House expands its sustainable infrastructure team
Gresham House has bolstered its sustainable infrastructure team through the addition of Chris Coulton, Jane O’Connor, and Vanessa Owen to the British Sustainable Infrastructure Strategy (BSIF). Coulton, formerly of LDC Private Equity, takes on the role of Director and Deputy Head of Portfolio. O’Connor, with a background in renewable energy funds at Temporis Capital, assumes the position of Investment Analyst. Owen, previously a forensic accountant specialized in valuations at Secretariat, joins as Portfolio Analyst. The BSIF focuses on impactful mid-market investments in innovative sustainable projects. Gresham House is committed to a diverse and inclusive team to support the expanding strategy.
Nuveen appointed Ted Maa as Managing Director for Private Equity in impact sectors
Nuveen has strengthened its impact investing team by appointing Ted Maa as Managing Director for private equity impact investments. With over 15 years of experience in private equity focused on energy and climate change, Maa will identify and manage direct investments in key impact sectors. Previously a partner at Pine Brook, he led investments in energy transition. Nuveen manages over $1 trillion in assets and operates in 27 countries.
Regulatory and Law
SEC request ESG disclosure documents from fund managers
The US SEC’s enforcement division has issued subpoenas to asset managers regarding their ESG investment marketing, indicating potential regulatory action in the sustainable fund sector. The inquiries focus on ESG transformations of conventional funds, differing disclosures in the US and Europe, and the booming ESG trend’s impact on fees and investor protection. The SEC’s recent formation of a task force targeting climate and ESG disclosures, along with cases like DWS’s €21mn reserve for an ESG investigation, hint at forthcoming enforcement actions. Other regulators, such as Australia’s ASIC, are also scrutinizing ESG disclosures.
13th APEC Energy Ministerial Meeting held
U.S. Secretary of Energy Jennifer M. Granholm hosted the 13th APEC Energy Ministerial Meeting on August 15, 2023, gathering 21 energy ministers. Discussions focused on energy transitions, power sector decarbonization, and methane emissions reduction. The event emphasized collective efforts in combating climate change and featured discussions on clean energy innovation, including advanced energy storage and grid-enhancing technologies. The Net Zero World initiative, introduced at COP26, involves ten National Laboratories and nine U.S. government agencies, offering technical, financial, and policy support to nations aiming to transition to cleaner energy systems and achieve significant greenhouse gas reductions.