Weekly ESG News: Financial Services and Insurance Industry
News in the spotlight: Chronos Sustainability expands its biodiversity and nature team
Chronos Sustainability, the global sustainability advisory firm, has made two key additions to its biodiversity and nature team. Laura Fox, an experienced biodiversity advisor with over 15 years in both private and nonprofit sectors, has been appointed as Manager, Agriculture and Biodiversity. She will focus on integrating biodiversity considerations in the agricultural sector and support the development of biodiversity and nature programs. Anna Hattam, a recent graduate from the London School of Economics and Political Science, joins as a Research Analyst to provide data-driven insights for the team’s client programs. This expansion of the team reflects Chronos’ commitment to helping companies and investors address sustainability challenges, particularly in the realms of biodiversity, nature, and agriculture.
Weekly Sustainable Finance Newsletter 39/2023
ESG News of the last week in detail
Products and Services
La Banque Postale, LBP AM and CNP Assurances launch €1bn impact infrastructure debt fund
The fund, classified under Article 8 of the SFDR, will focus on financing projects in renewable energies, circular economy, clean transport, energy efficiency, and innovative sectors like e-mobility, green hydrogen, and energy storage. This initiative positions La Banque Postale Group as a major player in the sustainable finance market and is a collaboration between the three entities. CNP Assurances’ investment aligns with its goal of reaching €30 billion in green investments and over €1 billion in impact investments by 2025.
Schroders achieved top ratings for its alignment with Impact Principals
Schroders achieved high ratings for adhering to the Impact Principles, confirming its commitment to global impact investing. This is the first independent verification of Schroders’ impact management framework, developed in partnership with BlueOrchard. Since adding BlueOrchard to its group in 2019, Schroders has been expanding its impact investment capabilities. The Impact Principles, hosted by GIIN, set industry standards for integrating impact into investment strategies, and Schroders scored top ratings across all nine principles. Catherine Macaulay, Impact Investment Lead at Schroders, emphasized the vital role of asset managers in addressing social and environmental challenges while creating investment opportunities.
Nasdaq Capital Access Platforms launches sustainability offerings for corporates and investors
Nasdaq’s Capital Access Platforms division has introduced two new offerings: Nasdaq Metrio, a SaaS-based platform for collecting and reporting sustainability data, and Nasdaq eVestment ESG Analytics, designed to enhance transparency for global institutional investors in impact investing. These offerings aim to facilitate corporate sustainability initiatives and data-driven investment decisions. Additionally, Nasdaq’s ESG Advisory team has released the “2023 Global Net Zero Pulse” report, highlighting opportunities for corporations to make a positive impact, with 25% currently committed to net zero targets.
Tokyo Stock Exchange will open carbon credit market in October
Tokyo Stock Exchange Inc. is set to open the carbon credit market on October 11, 2023 with 188 initial participants. This marks a significant step toward providing a platform for carbon credit trading in Japan and publicly disclosing carbon credit prices. The decision is based on the success of the “Carbon Credit Market Technical Demonstration Project” in 2022. This initiative aims to bolster greenhouse gas emissions reduction and sustainable economic development in Japan.
World Bank and Energy Transition Accelerator announce strategic collaboration
The U.S. Department of State, Bezos Earth Fund, The Rockefeller Foundation, and the World Bank are collaborating to support clean energy transitions in developing countries. The Energy Transition Accelerator (ETA) will harness private capital for transitioning from fossil fuels to clean energy using innovative carbon crediting. The World Bank’s SCALE initiative will aid in developing power sector policies and carbon market infrastructure for real emissions reductions. This partnership aims to mobilize finance for these transitions, rewarding developing countries for verified emissions reductions. This is crucial as clean energy investment must triple to $4.2 trillion annually by 2030, with over half needed in developing economies. The ETA will bring together a private sector coalition to pay for verified power sector emissions reductions, while the World Bank will support impactful climate programs through the SCALE trust fund.
Paine Schwartz Partners closes $1.7bn food and agribusiness-focused fund
Paine Schwartz Partners has successfully closed its Paine Schwartz Food Chain Fund VI at $1.7 billion, exceeding its original target of $1.5 billion. This fund is the largest dedicated to food and agribusiness investments. Paine Schwartz has already deployed 40% of the fund into various companies. The investment manager aims to drive growth and make a positive impact through responsible investment practices, addressing themes of productivity, sustainability, and health and wellness. With over $5.7 billion in assets under management, the firm remains committed to feeding a growing population more efficiently.
AXA IM launches Research Award with a focus on the social dimensions of climate change
AXA Investment Managers (AXA IM) and the AXA Research Fund have launched the third AXA IM Research Award, with a focus on the social dimensions of climate change. Researchers exploring solutions to support a fair and inclusive climate transition can apply, with the winner receiving €100,000. The award acknowledges scientists working in this field and aims to address pressing sustainability issues. The deadline for nominations is October 20, 2023. The award encourages innovative and inclusive solutions that combat social and gender inequalities, protect human health, and accelerate awareness of climate change’s socio-economic impacts. Candidates must have at least five to fifteen years of research experience at the PhD level. The award is earmarked for future research and will be paid to the researcher’s affiliated university.
ESG Data and Analytics
EcoVadis launches Carbon Footprint Data Exchange
EcoVadis has introduced the EcoVadis Product Carbon Footprint (PCF) Data Exchange, a new feature in its Carbon Action Module (CAM) to enable precise tracking of PCF across its supplier network of 40,000 companies engaged in carbon reduction. PCF Data Exchange facilitates more accurate reporting of greenhouse gas emissions related to specific products and services, addressing a key challenge in carbon reduction efforts. It follows global standards established by the Partnership for Carbon Transparency (PACT) and allows organizations to shift from industry averages to specific emissions data, improving Scope-3 accuracy and enabling year-over-year emissions tracking. The solution encourages suppliers to enhance their carbon maturity, making it easier for them to report PCF. It also provides tools for collaborative emissions reduction efforts and knowledge-building through EcoVadis Academy courses.
Regulatory and Law
Deutsche Bank subsidiary DWS to pay $25 Million after green-washing investigation
Deutsche Bank´s subsidiary DWS Investment Management Americas Inc. (DIMA) has been charged by the Securities and Exchange Commission (SEC) in two separate enforcement actions. One case relates to DIMA’s failure to establish a proper Anti-Money Laundering (AML) program for mutual funds it advised, leading to violations of the Bank Secrecy Act and Financial Crimes Enforcement Network regulations. The second case involves DIMA’s misleading statements about its Environmental, Social, and Governance (ESG) investment process, where it marketed itself as an ESG leader but failed to implement certain ESG integration policies adequately. To settle these charges, DIMA will pay a total of $25 million in penalties.
Just Climate announces natural climate solutions strategy
Just Climate, a Generation Investment Management subsidiary, is expanding into Natural Climate Solutions (NCS) with a strategy aimed at reducing emissions from agriculture, forestry, and land use while restoring soil, forests, and wetlands. This initiative is driven by the need to combat the 23% of global greenhouse gas emissions stemming from these sectors and could help achieve a significant portion of the 2030 net emissions reduction goals set by the Paris Agreement. Eduardo Mufarej will lead this global NCS strategy, and a new office in Brazil will aid in tackling NCS opportunities in Latin America. Just Climate’s move into NCS complements its commitment to large-scale climate solutions.
Leadership Announcements
Chronos Sustainability expands its biodiversity and nature team
Chronos Sustainability, the global sustainability advisory firm, has made two key additions to its biodiversity and nature team. Laura Fox, an experienced biodiversity advisor with over 15 years in both private and nonprofit sectors, has been appointed as Manager, Agriculture and Biodiversity. She will focus on integrating biodiversity considerations in the agricultural sector and support the development of biodiversity and nature programs. Anna Hattam, a recent graduate from the London School of Economics and Political Science, joins as a Research Analyst to provide data-driven insights for the team’s client programs. This expansion of the team reflects Chronos’ commitment to helping companies and investors address sustainability challenges, particularly in the realms of biodiversity, nature, and agriculture.
AXA IM appoints Anna Väänänen as Head of AXA IM Listed Impact Equity
AXA Investment Managers (AXA IM) has appointed Anna Väänänen as the Head of AXA IM Listed Impact Equity in a newly created role based in London. Anna will oversee thematic funds focused on sustainability and responsible investing, including Biodiversity, Clean Economy, Social Progress, People & Planet, and Human Capital strategies. She brings extensive experience from her previous role as a Senior Portfolio Manager at Mirova, where she led the Global Environmental Equity fund. This appointment reflects AXA IM’s commitment to meeting the growing demand for responsible investment strategies. Anna will report to Tom Riley, Head of Global Thematic Strategies, who expressed excitement about her addition to the team and her potential to strengthen AXA IM’s responsible investing capabilities.
Net Zero / Decarbonization Commitments
Allianz highlights importance of Climate Tech companies for net zero 2023
A recent report by Allianz Economic Research, Allianz X, UnternehmerTUM, and UVC Partners emphasizes the critical role of ClimateTech in achieving global net-zero goals, projecting the industry to reach a EUR 600 billion annual turnover by 2030. Europe is at risk of falling behind the US and China in this sector, with an investment gap of up to EUR 200 billion annually. To bolster Europe’s ClimateTech industry, the report recommends creating a common EU funding platform, increasing private sector collaboration with research institutions, attracting institutional capital, reducing bureaucratic obstacles, and mandating climate tech procurement.