Weekly ESG News: Financial Services and Insurance Industry
News in the spotlight: MAS launched digital platform for ESG data collection and access
The Monetary Authority of Singapore (MAS) has launched Gprnt, a digital platform aimed at simplifying ESG data collection and access. Gprnt, part of MAS’ Project Greenprint, automates ESG reporting for businesses, translating economic data into sustainability information. The platform, managed by Greenprint Technologies Pte Ltd, plans to expand its cross-border capabilities and involve strategic partners like HSBC, KPMG, Microsoft, and MUFG Bank. Gprnt will initially focus on SMEs, later scaling to meet the needs of larger corporations and national authorities. MAS aims to streamline sustainability reporting, supporting the global ESG data landscape.
Weekly Sustainable Finance Newsletter 46/2023
ESG News of the last week in detail
Products and Services
Robeco launches Fashion Engagement Fund
Robeco’s new Fashion Engagement Equities Strategy, the first of its kind, focuses on both investment returns and driving positive change in the fashion industry. Targeting 30 to 40 publicly listed companies across the fashion value chain, the strategy emphasizes sustainability and engages in key issues like workers’ rights and circular practices. By combining fundamental analysis with multi-year engagements, Robeco aims to construct a portfolio that fosters growth and addresses industry challenges. The initiative responds to the fashion sector’s social and environmental issues, promoting transparency and sustainable business practices. Robeco sees the alignment of economic, environmental, and social factors as crucial for long-term returns and a robust economy.
BlackRock closes $1bn energy transition and energy security infrastructure fund
BlackRock has successfully secured nearly $1 billion in commitments for its Evergreen Infrastructure fund, marking its first close. Launched in June 2022, the fund focuses on European and North American infrastructure aligned with energy transition and security. It aims to provide long-term cash yield and resilient, inflation-linked returns through diversified investments in core infrastructure sectors. Notable commitments come from European partners like Intesa Sanpaolo and Inarcassa, with plans to allocate 50-60% of the portfolio to Western Europe. The fund has finalized acquisition documents for Lighthouse, a US C&I solar and battery storage platform.
Manulife announced first close of $224.5mn forest climate fund
Manulife Investment Management has announced the initial close of its Manulife Forest Climate Fund LP, securing up to $224.5 million in commitments toward its $500 million target. The closed-end fund aims to support climate change mitigation by prioritizing carbon sequestration over timber production in sustainably managed forests. The strategy involves creating high-quality carbon credits through enhanced forest management practices, afforestation, and reforestation. Manulife FCF, categorized as a product under Article 9 of the European Commission’s Sustainable Finance Disclosure Regulation, focuses on generating long-term high-quality carbon credits for investors’ climate goals. The fund is available to qualified U.S. purchasers and operates under Rule 506(c) of Regulation D.
J.P. Morgan Asset Management announced liquidation of two ESG ETFs
J.P. Morgan Asset Management has announced the liquidation of the JPMorgan Sustainable Consumption ETF and JPMorgan Social Advancement ETF. The delisting date is set for December 18, 2023. Shareholders can trade their shares until the last day of trading on Nasdaq, which is December 15, 2023. The liquidation date for both funds is expected to be on or around December 26, 2023, with proceeds distributed to shareholders at net asset value. Shareholders retaining their ETF shares on the liquidation date will receive a cash distribution in their brokerage accounts.
ESG Data and Analytics
MAS launched digital platform for ESG data collection and access
The Monetary Authority of Singapore (MAS) has launched Gprnt, a digital platform aimed at simplifying ESG data collection and access. Gprnt, part of MAS’ Project Greenprint, automates ESG reporting for businesses, translating economic data into sustainability information. The platform, managed by Greenprint Technologies Pte Ltd, plans to expand its cross-border capabilities and involve strategic partners like HSBC, KPMG, Microsoft, and MUFG Bank. Gprnt will initially focus on SMEs, later scaling to meet the needs of larger corporations and national authorities. MAS aims to streamline sustainability reporting, supporting the global ESG data landscape.
Regulatory and Law
FCA study reveals further improvements to adhere to ESG guidelines for funds
The FCA’s recent review reveals that while many Authorised Fund Managers have made efforts to align with ESG and sustainable investment expectations, there’s still room for improvement. Despite positive practices like ESG scoring systems, issues persist, including inconsistent alignment of products with stated goals and unclear disclosure to investors. The FCA emphasizes the need for firms to address both good and poor practices outlined in the report to meet Sustainability Disclosure Requirements and the Consumer Duty. The regulatory changes aim to enhance sustainability disclosures, with ongoing monitoring to ensure compliance in the evolving market.
EU Commission funds 171 environment and climate related projects
The LIFE Programme, in its 31-year history, has supported over 6,000 environmental projects in the EU. Recently, 67 projects, backed by a total budget exceeding €102 million (with €97 million from the EU), aim to enhance market conditions for the clean energy transition. These initiatives align with the REPowerEU plan and Fit for 55 package, contributing to energy efficiency, renewable energy policies, and the broader Energy Union goals. The European Commission’s substantial 60% increase in funding for the 2021-2027 period, totaling €5.43 billion, underscores its commitment to environmental and climate action. CINEA manages grants under the LIFE Programme.
Net Zero Commitments
CalPERS announced $100mn net zero pledge
CalPERS unveiled a $100 billion commitment to achieve net zero carbon emissions in its portfolio by 2030, emphasizing a sustainable investing strategy. The plan includes divesting from investments lacking credible carbon reduction plans and aims to reduce emissions intensity by 50% by 2030. The initiative also prioritizes diversifying corporate leadership and bolstering labor principles. CalPERS, with nearly $47 billion in low-carbon assets, plans to double this amount, reinforcing its dedication to responsible investing and climate action. The strategy holds companies accountable for carbon footprint reduction, emphasizing engagement while warning of potential divestment for non-compliance. Read more here.