Weekly ESG News: Financial Services and Insurance Industry
News in the spotlight: Just Climate Closes US$1.5 Billion Climate Fund
Just Climate closed its first fund, Climate Assets Fund I, raising $1.5 billion from global institutional investors. The fund focuses on high-impact solutions for emissions reduction in industries like energy and mobility. Its performance fee is tied to ambitious greenhouse gas abatement goals. Established by Generation Investment Management, Just Climate has a team of experts in growth equity and impact measurement.
Weekly Sustainable Finance Newsletter 23/2023
ESG News of the last week in detail
Products and Service
BlackRock launched a new global ESG-focused equity Exchange-traded Fund
BlackRock has launched the iShares MSCI World Quality Factor ESG UCITS ETF, a new sustainable smart beta ETF in Europe. The ETF provides ESG-integrated exposure to a global portfolio of high-quality stocks. It is linked to the MSCI World Quality ESG Reduced Carbon Target Select Index. This index applies ESG screening and optimization to maximize exposure to quality factors while improving the ESG profile and reducing carbon emissions. The ETF has an expense ratio of 0.30% and is classified as an Article 8 product under SFDR.
Bloomberg launched carbon-tilted commodities index
HANetf has reduced fees for its solar and clean energy ETFs making them one of the most competitively priced products among Europe. The Solar Energy UCITS ETF saw a 20 basis point reduction in fees to 0.49%, while the HANetf S&P Global Clean Energy Select HANzero UCITS ETF experienced a 16 basis point reduction down to 0.39%. These ETFs aim to attract investors seeking sustainable investment opportunities.
Just Climate Closes US$1.5 Billion Climate Fund
Just Climate closed its first fund, Climate Assets Fund I, raising $1.5 billion from global institutional investors. The fund focuses on high-impact solutions for emissions reduction in industries like energy and mobility. Its performance fee is tied to ambitious greenhouse gas abatement goals. Established by Generation Investment Management, Just Climate has a team of experts in growth equity and impact measurement.
Carbon Growth Partners raised $200mn for Carbon Credits Fund
Carbon Growth Partners (CGP) has reopened its Carbon Growth Fund, targeting $200 million by mid-2024. The fund invests in carbon credits and offsets for a 20% annual return. The reopening offers an opportunity to invest in under-priced carbon assets and support climate action. Capital raise closes on June 30, 2023.
LOIM and Systemiq announce holistiQ Investment Partners
LOIM and Systemiq have formed holistiQ, a sustainable investing platform. It will target investment opportunities in key economic systems like energy and land, leveraging research and quantitative analysis. The platform combines the deep asset management expertise and commitment to sustainability of LOIM with the analytical capabilities of Systemiq. Read more here.
impak is launching the world’s first indices based on the ESG+impact assessment
Impak launched the world’s first ESG+impact indices and ETFs in partnership with Circa5000 and Bita. These indices enable investors to support positive change in five key areas. The methodology is rigorous, and clients have flexibility in customizing their strategies. Read more here.
ESG Data and Analytics
Fitch Group unveils ESG regulations tracker
Fitch Group has launched an ESG Regulations and Reporting Standards Tracker in partnership with Sustainable Fitch. The Excel-based database tracks ESG regulatory developments, reporting frameworks, and emerging ESG issues. It provides comprehensive insights for compliance and aligning strategies with sustainability goals. The tool reflects the increasing global importance of ESG regulations, with taxonomies and climate disclosures gaining momentum.
GenZero, BCG Launch Climate Impact Measurement Framework for Investors
GenZero and Boston Consulting Group (BCG) have introduced a Climate Impact Measurement Framework for investors to assess the climate impact of their decarbonization investments. The framework addresses key aspects such as the type of impact, share of impact, timeframe, and balancing considerations. It aims to provide a common understanding for measuring and reporting decarbonization efforts. Read more here.
Net Zero
MAPFRE has left the NZIA
Insurance company MAPFRE has withdrawn from the Net-Zero Insurance Alliance (NZIA) amid pressure and legal concerns. Despite this, MAPFRE remains committed to its sustainability goals, including achieving net-zero emissions globally by 2050. The company has already reduced its carbon footprint by 26% and aims for carbon neutrality in all countries by 2030. Notably, business travel and commuting emissions have been significantly reduced.
BNP Paribas exits bond arranging for new oil and gas ventures
BNP Paribas will stop arranging bond deals for new fossil-fuel exploration and production, expanding its restrictions on fossil-fuel financing. The bank aims to focus on low-carbon technologies and gradually shift financing away from carbon-intensive industries. BNP will still consider bond syndication for oil and gas companies trying to reduce their fossil-fuel business.
Green- and ESG Bond Issuances
Ørsted becomes world’s first energy company to issue blue bonds
Ørsted has issued the world’s first blue bond, raising EUR 100 million to support off-shore biodiversity and sustainable shipping. Blue bonds aim to finance ocean projects with environmental benefits. Ørsted’s bond will fund marine biodiversity protection and green ocean fuel development. The issuance addresses the need for sustainable ocean financing.