ESG News

ESG News 42/2024 (14.10. – 20.10.)

Weekly ESG News: Financial Services and Insurance Industry (42/2024)

News in the spotlight: IBM has acquired Prescinto, enhancing its Maximo Application Suite with AI-powered software for optimizing renewable energy asset performance.

IBM has strengthened its position in renewable energy by acquiring Prescinto, a company that offers AI-driven solutions for asset performance management in clean energy projects. This acquisition will allow IBM to integrate advanced monitoring and analytics into its Maximo Application Suite, enabling clients to optimize the performance of wind, solar, and energy storage assets while addressing sustainability objectives.

Upcoming events

International Sustainability Forum 2024

October 24-25 in Kyiv, Ukraine / The Hague, Netherlands (in person and online)

The International Sustainability Forum 2024 (ISF 2024) is a premier global event focused on collaboration for a sustainable future. Held on October 24-25, 2024, in Kyiv and The Hague, ISF 2024 will bring together experts, policymakers, and business leaders to discuss key trends in sustainability. Through collaborative discussions, case studies, and networking, the forum aims to drive impactful change and promote the achievement of global sustainability goals.

Products and Services

IBM Strengthens Its Position in Renewable Energy with Prescinto Acquisition

IBM announced its acquisition of Prescinto, an AI-powered software provider specializing in renewables asset performance management (APM). Founded in 2016 in India, Prescinto offers SaaS solutions to enhance the performance and efficiency of clean energy projects. Their APM software utilizes AI for advanced monitoring, analytics, and automation, helping manage wind, solar, and energy storage assets. With operations across 14 countries and 16 GW of managed projects, key clients include SoftBank Energy and Macquarie. This acquisition will enhance IBM’s Maximo Application Suite, integrating capabilities to optimize asset performance and reduce operational downtime. IBM aims to support clients’ sustainability and net-zero goals by allowing near real-time tracking of renewable assets and identifying issues before they impact performance. For instance, the software can monitor solar panels for dirt accumulation, prompting necessary cleaning actions to maintain efficiency.

Scope3 Secures $25 Million to Address AI's Climate Impact

Scope3, a digital media sustainability platform, has raised $25 million to expand its efforts in mitigating the climate impact of the AI industry. Founded in 2021, Scope3 focuses on decarbonizing media and advertising by providing tools to visualize and measure carbon emissions within the advertising ecosystem. With the new funding, the company aims to broaden its vision to encompass AI, offering an open-source methodology to trace and measure the environmental impacts of AI products and services. Co-Founder and CEO Brian O’Kelley emphasized the growing intersection of AI and media, making it essential to assess AI’s climate impact. The funding round was led by GV, with participation from existing and new investors, highlighting the demand for sustainable AI practices.

Net Zero Commitments

JPMorgan and Capital One Provide $260 Million Tax Equity Financing for BrightNight Solar Project

BrightNight has secured $260 million in tax equity financing from J.P. Morgan and Capital One for its 300 MW Box Canyon solar project in Arizona. This funding comes in the wake of the Inflation Reduction Act, which has made tax credits transferable and provided significant financial support for clean energy projects. BrightNight, founded in 2019, focuses on developing large-scale renewable power projects and utilizes AI-based software to optimize project operations. The Box Canyon project, expected to be operational by mid-2025, will produce over 900,000 MWh annually, marking a significant achievement for the Southwest Public Power Agency. CEO Martin Hermann emphasized the project’s role in supporting Arizona’s clean energy transition and delivering economic benefits to local communities.

Google Partners with Kairos Power for First Nuclear Energy Deal to Reduce AI Carbon Footprint

Google has signed its first agreement with Kairos Power to deploy small modular nuclear reactors (SMRs) in the U.S., aiming to provide up to 500 MW of carbon-free energy. This move addresses the increasing carbon emissions from its expanding data center operations, which have seen a 13% rise in emissions in 2023. The partnership marks a significant step in Google’s strategy to achieve net-zero emissions by 2030 and operate on 24/7 carbon-free energy. Under the deal, Kairos Power will construct and operate several SMRs, with the first expected online by 2030. Google views this collaboration as a crucial part of its efforts to commercialize advanced clean energy technologies.

ESG Data and Analytics

ICE Launches Climate Transition Risk Solution for Municipal Bonds and Real Estate

Intercontinental Exchange (ICE) has introduced a climate transition risk solution aimed at underserved segments of fixed income, including municipal bonds, mortgage-backed securities (MBS), and real estate. This new offering provides emissions estimates and portfolio analytics across various asset classes, covering Scope 1, Scope 2, and Scope 3 emissions. Larry Lawrence, Head of ICE Climate, highlighted the growing demand for quality transition risk data, particularly for mortgage-backed securities, which constitute a significant portion of bank balance sheets. The solution addresses gaps in emissions data and allows clients to benchmark financed emissions across a comprehensive range of fixed income assets. ICE’s methodologies are tailored for each asset class, helping organizations comply with climate regulatory reporting requirements.

Bloomberg Launches New Solution to Assess Nature and Biodiversity Risk Exposure

Bloomberg has introduced a new solution that enables investors to evaluate their exposure to nature and biodiversity risks while aligning with the Taskforce on Nature-related Financial Disclosures (TNFD). The tool provides insights such as the percentage of revenue from high nature-risk sectors, involvement in deforestation-related commodities, and exposure to water-stressed areas. Covering up to 45,000 companies, it integrates company-reported data, biodiversity indicators, and water stress analyses to assess financial materiality concerning nature. With nearly $1 trillion in annual financing needed by 2030 for biodiversity management, Bloomberg emphasizes the growing importance of understanding nature-related risks. Christian O’Dwyer, Nature Solutions Product Manager, noted that the solution offers a comprehensive view of a company’s impact and dependency on nature, facilitating informed decision-making.

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