Weekly ESG News: Financial Services and Insurance Industry
News in the spotlight: Bezos Earth Fund announced $400 Million investments to enhance green spaces in underserved cities
The Bezos Earth Fund has made a noteworthy announcement, committing $400 million to enhance green spaces in underserved urban U.S. communities, with a focus on parks, trees, and community gardens. The initiative, known as Greening America’s Cities, begins with an initial investment of $50 million in five cities and plans to expand to additional cities by 2030. The fund aims to address the disparity in nature access for underserved communities and promote the numerous benefits of green spaces, including improved health, climate resilience, and community well-being. This initiative aligns with the federal government’s efforts to foster equitable access to green spaces and support the Justice40 initiative.
Weekly Sustainable Finance Newsletter 29/2023
ESG News of the last week in detail
Products and Service
responsAbility received Green Climate Fund accreditation
ResponsAbility, a Zurich-based pioneer in impact investing, has achieved a major milestone by obtaining accreditation from the Green Climate Fund (GCF), the world’s largest climate fund. This accreditation enables responsAbility to extend its impact in climate finance and sustainable development within emerging economies. By mobilizing climate capital for low-carbon and climate-resilient economies, responsAbility reinforces its reputation as a reliable climate finance partner.
EIB announced €800 million in financing for climate action projects in Argentina, Brazil and Chile
At the upcoming EU-CELAC Summit, the European Investment Bank (EIB) will unveil a significant €800 million financing package for climate projects in Argentina, Brazil, and Chile. These projects are part of the EU’s Global Gateway program, which emphasizes crucial sectors such as digital, climate, transport, health, energy, and education. EIB Global has been actively backing Latin American projects since 2022, aiming to invest €100 billion by 2027.
Bezos Earth Fund announced $400 Million investments to enhance green spaces in underserved cities
The Bezos Earth Fund has made a noteworthy announcement, committing $400 million to enhance green spaces in underserved urban U.S. communities, with a focus on parks, trees, and community gardens. The initiative, known as Greening America’s Cities, begins with an initial investment of $50 million in five cities and plans to expand to additional cities by 2030. The fund aims to address the disparity in nature access for underserved communities and promote the numerous benefits of green spaces, including improved health, climate resilience, and community well-being. This initiative aligns with the federal government’s efforts to foster equitable access to green spaces and support the Justice40 initiative.
DWS launches its first thematic ETFs in the U.S.
DWS, a leading asset manager, has launched three thematic ETFs in the U.S., offering exposure to vital sectors: U.S. green infrastructure, semiconductor, and cybersecurity. These cost-effective, index-tracked solutions complement DWS’s European thematic ETF suite and support Xtrackers’ expansion in the Americas. With 42 funds and $19.5 billion in assets under management, Xtrackers continues to innovate and provide access to promising growth themes. The new thematic ETFs from DWS provide investors with opportunities to capitalize on emerging trends and transformative industries while also contributing to a more sustainable and resilient global economy. These innovative investment solutions align with DWS’s mission to offer diverse and efficient ETF options that cater to various investment objectives and preferences.
AXA IM Alts commits USD $49m to Brazilian Amazon rainforest restoration projects
AXA IM Alts announced a USD $49 million commitment to invest directly into Mombak reforestation projects. The project aims towards the restoration of the Amazon rainforest in Brazil. Furthermore, AXA AI Alts has taken over a minority equity stake in the carbon removal start-up Mombak.The investment is part of AXA IM Alts’ natural capital and impact investing strategy.
ESG Data and Analytics
Deloitte, AT&T and Salesforce to work on ESG data collection and sustainability management
Deloitte, AT&T, and Salesforce collaborate to simplify ESG data collection and sustainability management. The partnership integrates AT&T’s connectivity solutions with the Deloitte Digital Sustainability 360™ platform, powered by Salesforce Net Zero Cloud, streamlining processes and improving data accuracy. The initiative addresses challenges in collecting ESG data across organizations’ value chains, helping them meet evolving regulatory requirements and sustainability goals. AT&T’s IoT technology improves emissions tracking and reporting while supporting environmental management. The joint effort aligns with AT&T’s Connected Climate Initiative, aiming to collectively reduce one gigaton of greenhouse gas emissions by 2035. The collaboration seeks to drive impactful change and deliver climate solutions that contribute to emissions reduction and climate change mitigation.
Leadership Announcements
Barclays appointed new managers for Sustainable and Impact Investment Banking team
Barclays bolsters its SIB team with new senior hires, providing expert advice and capital raising services for companies tackling environmental and social challenges. The team supports larger-capitalization firms in ESG-related financing and strategic transactions. Recent hires include Arnoud Boksteijn, Cindy Quan, and Bogdan Oprea. Barclays aims to facilitate $1 trillion of sustainable financing by 2030, with the SIB team meeting increasing demand from early-stage climate tech companies.
Michael van der Meer joins M&G as Head of Sustainable Finance
M&G appoints Michael van der Meer, formerly of Credit Suisse, as new Head of Sustainability. He succeeds Rob Marshall, who is stepping down after 20+ years at M&G. Van der Meer has been in the role since July 10th and reports to Fabiana Fedeli, CIO of Equities, Multi Asset, and Sustainability. Prior to M&G, Van der Meer spent over 2 years at Credit Suisse as Head of Sustainable Investment Analysts, overseeing sustainable investments and the Net-Zero program. He leads M&G Asset Management’s Sustainability team from Zurich. Currently, Marshall intends to take a well-deserved break and carefully consider the next steps in his career.
Green- and ESG Bond Issuances
Masdar launched first USD 750mn 10-year Green Bond
Masdar, the UAE’s leading renewable energy company, successfully launched its first US$750 million green bond, which was 5.6 times oversubscribed, reflecting investor confidence in its financial strength and sustainability credentials. The net proceeds will be used exclusively to invest in ‘dark green’ renewable energy projects in developing economies and climate-vulnerable countries. This issuance is part of Masdar’s plan to raise up to US$3 billion for new renewable energy projects, with the aim of growing its global portfolio to 100GW of capacity by 2030.
Regulatory and Law
Indian regulator introduces a separate sub-category for ESG investments
Thematic categories of equity plans will now include a unique subcategory for ESG (Environmental, Social, and Governance) investments, according to capital market regulator Sebi. Any project falling within the ESG category may be launched using one of the following strategies: Exclusion, Integration, Best-in-class & Positive Screening, Impact Investing, Sustainable Objectives, and Transition or investments relevant to the transition.Mutual funds are now only allowed to introduce one ESG equity scheme within the theme category. Sebi has decided to allow mutual funds to launch numerous ESG schemes with various ESG strategies in light of industry arguments in favor of doing so and in consideration of the growing need for green financing.