Weekly ESG News: Financial Services and Insurance Industry (11/2024)
News in the spotlight: KKR submits $2.8bn bid for Encavis
KKR has announced plans to acquire Encavis, a German renewable energy platform, for €2.8bn.
Products and Services
KKR submits $2.8bn bid for Encavis
KKR has announced plans to acquire Encavis, a German renewable energy platform, for €2.8bn. The deal includes a voluntary public takeover offer at €17.5 per share, representing a 54% premium to Encavis’ XETRA closing share price on March 5, 2024. KKR aims to accelerate Encavis’ growth, with Viessmann joining as a co-investor. The partnership intends to strengthen Encavis’ project pipeline, expand its capacity, and target 7GW of installed capacity by 2027. The transaction is subject to regulatory approvals and is expected to close in Q4 2024.
Regulations, Law & Frameworks
U.S. Energy Department will fund 52 clean hydrogen projects
The Department of Energy is investing $750 million in clean hydrogen projects across 24 states, aiming to promote hydrogen as a significant energy source with low emissions. Funded through the Bipartisan Infrastructure Law, these 52 projects will focus on increasing hydrogen fuel cell production and electrolyzers powered by renewables. Expected outcomes include generating 1.3 million tons of clean hydrogen annually and producing enough hydrogen fuel cells to power 15% of medium- and heavy-duty trucks sold in the U.S. each year. This initiative aligns with the Biden administration’s goal of achieving net-zero emissions by 2050, with additional funding allocated for hydrogen hubs nationwide.
PRI publishes EU Policy Roadmap for 2030
PRI’s 2030 EU Policy Roadmap provides crucial recommendations for expediting private investment in the economic transition through sustainable finance and real economy policies. This includes refining existing frameworks, enhancing disclosures, strengthening investor stewardship, ensuring effective governance, promoting global cooperation, and implementing climate, nature, and social policies. These measures aim to foster an effective policy framework that encourages investors to drive the necessary private finance for the transition, benefiting EU competitiveness, security, and resilience.
ESG Data & Analytics
CUSIP adds Green Bond data to its global data feeds
CUSIP Global Services (CGS) has partnered with the Climate Bonds Initiative (Climate Bonds) to integrate green bond data attributes into its global data feeds and desktop products. This collaboration aims to enhance ESG data coverage globally by providing instant identification and categorization of securities with environmentally sustainable attributes. The addition of green bond tags enables investors to quickly assess securities based on Climate Bonds’ internationally recognized taxonomy, covering both corporate and municipal bonds. CGS will append text-based descriptors to the standard CUSIP ID for green bonds at no extra cost to customers. This initiative expands on CGS’ previous inclusion of ESG data attributes and reflects a shared commitment to advancing standards and transparency in green finance.
Leadership Announcements
Hayley Grafton joins responsible investment team of Edentree
Hayley Grafton has been appointed as the senior RI analyst at Edentree, where she will lead the firm’s corporate governance and proxy voting efforts while also focusing on core themes such as climate change and financial inclusion. With experience from Mercer, where she served as a sustainable investment specialist, Grafton brings expertise that complements the existing team at Edentree. Led by Carlota Esguevillas, the responsible investment team, which also includes Amelia Gaston and Cordelia Dower Tylee, is poised to expand its focus for clients and prospects.
Low Carbon Investment Management appoints Annabel Wiscarson as CEO
Annabel Wiscarson joins Low Carbon as CEO of Low Carbon Investment Management, bringing extensive experience in global investment management. Her appointment, along with Neil Brown’s as Head of Capital Formation, underscores Low Carbon’s commitment to deploying significant capital into renewables. Founder Roy Bedlow is enthusiastic about Wiscarson’s addition, emphasizing the company’s dedication to fighting climate change and accelerating the energy transition. With Wiscarson, Brown, and Chairman Brian Clarke, Low Carbon aims to match investor needs with the delivery of renewables at scale, emphasizing the urgency of the transition to clean energy.