Weekly ESG News: Financial Services and Insurance Industry
News in the spotlight: Apollo launches Clean Transition Equity ELTIF fund
Apollo has received regulatory approval from Luxembourg’s CSSF to launch the Apollo Clean Transition Equity ELTIF via its Luxembourg-based product platform. This fund aims to provide European wealth investors with increased access to private equity opportunities focused on the transition to clean energy. Apollo, with a goal of deploying $50 billion in clean energy and climate capital by 2027, sees this as a crucial step in scaling solutions through its Global Wealth business. The new offering on the Apollo Private Markets platform aligns with the firm’s commitment to sustainable investments and expands access to thematic climate and transition private equity for eligible European investors.
Weekly Sustainable Finance Newsletter 50/2023
ESG News of the last week in detail
Products and Services
Morningstar introduces Transatlantic Sustainable Development Goals Select 40 Index
Morningstar has launched the Morningstar Transatlantic Sustainable Development Goals Select 40 Index in collaboration with Citi. This impact-oriented index focuses on U.S. and Developed European companies contributing positively to UN SDGs. Utilizing Morningstar Sustainalytics data, it emphasizes impact themes such as Human Development and Climate Action. Constituents are selected based on stringent ESG screens and must derive a minimum of 25% of their revenue from sustainability activities. The index expands Morningstar’s sustainable investing solutions, addressing diverse goals like ESG risk and climate impact.
BNP Paribas launches new Climate Impact Infrastructure Debt fund
BNP Paribas has introduced the Climate Impact Infrastructure Debt fund, a collaborative effort between BNP Paribas Asset Management, Corporate & Institutional Banking, and BNP Paribas Cardif. The fund, targeting EUR 500-750 million from institutional investors, supports energy transition projects across continental Europe. It focuses on renewable energy, clean mobility, and the circular economy, including emerging sectors like batteries, hydrogen, and carbon capture. The Luxembourg-based fund, managed by BNPP AM’s Private Assets division, has already secured three investments, emphasizing low-carbon energy, green district heating, and onshore wind farms. BNP Paribas aims to leverage its integrated bank model to accelerate expertise in the low-carbon transition space.
Apollo launches Clean Transition Equity ELTIF fund
Apollo has received regulatory approval from Luxembourg’s CSSF to launch the Apollo Clean Transition Equity ELTIF via its Luxembourg-based product platform. This fund aims to provide European wealth investors with increased access to private equity opportunities focused on the transition to clean energy. Apollo, with a goal of deploying $50 billion in clean energy and climate capital by 2027, sees this as a crucial step in scaling solutions through its Global Wealth business. The new offering on the Apollo Private Markets platform aligns with the firm’s commitment to sustainable investments and expands access to thematic climate and transition private equity for eligible European investors.
Regulatory and Law
NGFS provides recommendations for the development of nature-related scenarios
NGFS has released a Technical Document recommending the development of nature-related scenarios to assess economic and financial risks. This document, based on a thorough literature review and expert input, is a crucial step in integrating the consideration of nature-related risks. Ravi Menon, NGFS Chair, emphasizes the need to understand and manage the economic implications of nature loss. The document addresses challenges such as the localized impact of nature loss, the need for specific models, and considering indirect impacts throughout value chains. Co-chairs Emmanuelle Assouan and Marc Reinke stress the importance of tools for accurately estimating nature-related impacts on the financial system. The NGFS launched the document during the Green Finance Research Advances Conference, highlighting its significance in advancing assessments of nature-related financial risks.
Leadership Announcements
Generate Capital appoints Lilliam Sonneborn as its new President
Generate Capital, a prominent sustainable investment company, welcomes William Sonneborn as its new President, a seasoned executive with extensive experience in alternative investments. Scott Jacobs, CEO, expresses enthusiasm about Sonneborn joining the management team, emphasizing his leadership and decades of industry experience. Richard Kauffman, Board Chair, highlights Sonneborn’s proven track record in sustainable infrastructure investment. Sonneborn, formerly Global Director at IFC, expresses honor and excitement, praising Generate’s comprehensive approach to the Infrastructure Transition. The appointment follows a year of significant growth for Generate, with over $8 billion raised and $6 billion invested in sustainable infrastructure.
Net Zero / Decarbonization Commitments
Crédit Agricole stops financing new fossil fuel projects
Crédit Agricole, France’s second-largest listed bank, has pledged to cease financing new fossil fuel extraction projects and disclose its exposure to the sector following COP28 agreements. The bank aims to reduce financed carbon emissions tied to oil and gas sectors by 75% by 2030, surpassing its initial target of 30%. It plans to triple annual financing for renewable energy projects to 3 billion euros by 2030, and increase its investment bank unit’s exposure to low-carbon energies by 80% from 2020 to 2025. These commitments align with the “net zero 2050 scenario,” but environmental groups seek more transparency and reduction in credit exposure to the oil and gas sectors. The bank will report its fossil extraction project exposure in Q1 2024.