Weekly ESG News: Financial Services and Insurance Industry (19/2024)
News in the spotlight: Allfunds and MainStreet Partners unveil Sustainability Navigator
Allfunds and MainStreet Partners have jointly launched the Sustainability Navigator, an automated tool tailored to assist asset and wealth managers in constructing and auditing Article 8 and 9 portfolios compliant with EU sustainability regulations.
Regulations, Law and Frameworks
The Investment Association (IA) comments on final SDR rules
Galina Dimitrova of the Investment Association welcomed the Sustainability Disclosure Requirements (SDR) and investment labels, praising their clarity for investment managers and alignment with regulatory expectations. She emphasized transparency, flexibility in marketing rules, and global collaboration on sustainable finance standards, aiming for higher standards and better-informed investor choices. She expressed readiness to implement the regulations and understand their practical implications (official press release).
Expert group advises EU Commission to scale up biodiversity credit markets
A high-level expert group advised the EU Commission to scale up efforts in shaping a biodiversity credit market to boost investments in low and middle-income countries. The group emphasized the need for regulatory safeguards and pricing mechanisms. Additionally, they suggested exploring alternative methods like the landscape approach and sovereign green bonds to leverage capital for conservation efforts. This follows recent initiatives by the World Economic Forum and the UN-backed Biodiversity Credits Alliance to shape and build confidence in the emerging biodiversity credit market.
Products & Services
M&G invests over €100mn into European Fund for Southeast Europe
M&G has invested €107 million into the European Fund for Southeast Europe, promoting entrepreneurship, job creation, and poverty reduction in underserved regions. This investment, facilitated by Finance in Motion, aims to bolster local businesses and communities by providing financial products and technical assistance. Leveraging a blended finance model, the fund has already supported over 50,000 female-owned enterprises and indirectly assisted 2.1 million jobs since 2005. This marks M&G’s commitment to impactful capital allocation, amplifying private investment for inclusive and sustainable economic growth in Southeastern Europe.
HASI and KKR establish $2bn strategic partnership for sustainable infrastructure investments
Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) and KKR have formed CarbonCount Holdings 1 LLC (CCH1) with a $2 billion investment plan for climate-positive projects in the U.S. Over 18 months, they aim to invest in clean energy assets, with each committing up to $1 billion. HASI will manage CCH1, source investments, and measure emissions reductions using its CarbonCount scoring tool. The partnership marks a shift for HASI towards a more capital-light model and reduces reliance on public equity markets. KKR, with extensive experience in infrastructure investing, sees the collaboration as complementary to its clean energy strategy.
Ocean 14 Capital Fund I reaches hard cap of €200 million
Ocean 14 Capital Fund I has successfully closed its funding round, securing €201 million in investments from prominent entities such as Nestlé, HQ Capital, and The Green Earth Impact Fund managed by Schroders and BlueOrchard. Specializing in the blue economy, the fund directs its efforts towards sustainable solutions, including aquaculture, plastic waste reduction, and marine ecosystem protection, in line with UN Sustainable Development Goal 14. With the blue economy projected to reach $3 trillion by 2030, the fund aims not only to drive innovation and positive environmental impact but also to generate attractive financial returns for its investors.
Allfunds and MainStreet Partners unveil Sustainability Navigator
Allfunds and MainStreet Partners have jointly launched the Sustainability Navigator, an automated tool tailored to assist asset and wealth managers in constructing and auditing Article 8 and 9 portfolios compliant with EU sustainability regulations. This innovative tool integrates Allfunds’ digital ecosystem with MainStreet Partners’ sustainability expertise, allowing users to upload existing portfolios for instant analysis or build customized portfolios from scratch. With access to a vast database of over 8,500 issuers, users can apply various filtering criteria based on ESG screening practices to align with their sustainability objectives.
ESG Data & Analytics
ERM launches carbon consulting business
ERM, a leading sustainability consultancy, has launched ERM Climate Markets to assist organizations in navigating carbon markets and achieving meaningful emissions mitigation. The new business line will provide clients with access to high-quality carbon credits that align with their sustainability goals and accelerate the transition to net zero. ERM Climate Markets will offer enhanced due diligence and support for carbon project development, leveraging ERM’s expertise and global network. This initiative aims to address the complexity of carbon markets and support clients in reducing their emissions impact while contributing to sustainable development.
Net Zero Commitments
Standard Chartered commits to reducing methane emissions
Standard Chartered is committing to reducing methane emissions as part of its net zero roadmap, aligning with its 2050 goal. By 2025, it plans to establish science-based targets for sector-specific methane emissions, focusing on the oil and gas sector. Recognizing methane’s impact on climate change, the bank aims to collaborate with clients to transition to lower emissions practices, supporting broader greenhouse gas reduction efforts in line with the Paris Agreement. Chief Sustainability Officer Marisa Drew underscores the importance of methane emissions reduction and promoting accountability in decarbonization efforts.