News in the spotlight: Urban Impact Ventures closes EUR 210m fund to back sustainable city startups
Urban Impact Ventures has announced the final close of its second venture capital fund at EUR 210 million, exceeding its initial target of EUR 150 million. The Netherlands-based firm focuses on startups that support sustainable urban development in sectors such as energy transition, circular economy, and social mobility. Investors in the fund include family offices, wealth managers, and institutional investors from across Europe.
Products and Services
Puro.earth launches quarterly carbon credit issuance to support biochar suppliers
Biochar is emerging as one of the most scalable and cost‑effective carbon removal solutions, with 658,000 tCO2e delivered and 302,000 tCO2e retired since early 2022, and growing recognition in EU carbon removal policy frameworks. Puro.earth argues that future growth must balance rapid scaling with integrity, driven by innovation in technology, products, monitoring and science. On the supply side, advances in biomass pre‑processing, co‑product valorisation (e.g. power, advanced biofuels, biochemicals) and reactor automation are making production more reliable, economical and climate‑efficient. Demand is diversifying from agriculture into construction materials, fertiliser blends and retail gardening products, with new rules enabling issuance of CO2 Removal Certificates (CORCs) for retail uses under strict conditions on formulation, labelling and conservative discount factors. Rapid progress in MRV tools and digital audit trails aims to cut administrative burdens while supporting higher‑frequency, data‑driven credit issuance.
Wells Fargo ends ISS Partnership and launches Internal Proxy Voting Platform
Wells Fargo has ended its relationship with Institutional Shareholder Services (ISS), one of the major proxy advisory firms, and has launched an internal voting system to handle shareholder decisions more directly, according to a report by the Wall Street Journal. The move is part of a broader industry trend where large asset managers are reassessing their reliance on third-party proxy firms due to concerns about influence on corporate governance and voting practices. By creating its own proxy voting platform, Wells Fargo aims to exercise greater control over how its investment arms vote on critical issues such as executive compensation, board appointments, and environmental and social resolutions. The bank indicated that this shift is designed to improve its fiduciary oversight and better align voting with client interests. This strategic pivot also reflects increasing regulatory scrutiny of proxy advisory firms and a push by industry participants to increase transparency and accountability in corporate voting processes.
responsAbility secures EUR 200 million Impact Fund Mandate from Stella
Swiss impact asset manager responsAbility Investments AG has secured a EUR200 million mandate from Stella Vermögensverwaltungs GmbH, the investment vehicle of the Heinz Hermann Thiele Family Foundation and Julia Thiele-Schürhoff, to invest in impact-focused private equity funds in emerging markets. Announced on 29 January 2026, the bespoke strategy targets growth-oriented companies in Africa, Asia, and Latin America that advance UN Sustainable Development Goals (SDGs), prioritizing regions with acute financing gaps. The approach pursues a triple bottom line—profit, people, and planet—by supporting firms that create formal jobs, deliver essential goods and services, and adopt environmentally sustainable models, all with a long-term horizon and attractive returns. Stella views emerging markets as offering superior impact per euro alongside strong financial upside, with impact forming a core pillar of its private markets allocation. Executives hailed the partnership as a milestone in mobilizing private capital for sustainable development, citing responsAbility’s global team, M&G backing, and impact stability.
Urban Impact Ventures closes EUR 210m fund to back sustainable city startups
Urban Impact Ventures has announced the final close of its second venture capital fund at EUR 210 million, exceeding its initial target of EUR 150 million. The Netherlands-based firm focuses on startups that support sustainable urban development in sectors such as energy transition, circular economy, and social mobility. Investors in the fund include family offices, wealth managers, and institutional investors from across Europe. The vehicle has already deployed capital to six portfolio companies involved in solutions for food waste, sustainable materials, and clean energy. Urban Impact Ventures plans to make approximately 15 investments in total from the fund, targeting early to growth-stage companies with scalable impact potential in urban areas. The firm emphasizes measurable impact outcomes in line with ESG frameworks and the EU Sustainable Finance Disclosure Regulation (SFDR).
Invest-NL backs water tech fund with EUR 10 million investment
Invest-NL has committed EUR 10 million to PureTerra Ventures, a specialist water technology growth fund based in the Netherlands. This investment aligns with Invest-NL’s mission to foster sustainable innovation and contribute to the country’s climate goals. PureTerra Ventures focuses on scaling early-stage companies that offer breakthrough solutions for global water challenges, including water scarcity, pollution, and climate resilience. Invest-NL’s capital will help the fund increase its reach, enabling critical water technology innovations to grow more rapidly and achieve commercial viability. This partnership is expected to enhance the Netherlands’ position as a leader in water innovation and supports the sustainable development agenda both domestically and internationally.
Regulations, Law and Frameworks
Net Zero Financial Service Providers Alliance (NZFSPA) is about to wind down
The Net Zero Financial Service Providers Alliance (NZFSPA) is set to wind up as a standalone initiative, marking another significant reshaping of the global net zero finance architecture. Established under the UN‑backed Principles for Responsible Investment, the alliance brought together stock exchanges, index and data providers, and auditors to align financial market infrastructure with a 2050 net zero pathway. Its participants say the group has now fulfilled its core mandate by delivering sector‑specific target‑setting frameworks that will remain as reference tools for providers designing net zero‑aligned products and services. Rather than signalling retreat, the wind‑up represents a transition to more decentralized, sector‑focused action: member firms will pursue climate strategies either independently or through other initiatives, while the NZFSPA’s Exchange Group continues under the UN Sustainable Stock Exchanges as the Net Zero Exchange Group – SSE Climate Leaders.
Hong Kong expands Green Taxonomy with Climate Transition and Adaptation Categories
On January 30, 2026, the Green and Sustainable Finance Cross-Agency Steering Group of Hong Kong announced enhancements to its sustainable finance taxonomy. The updated taxonomy introduces new categories focused on climate transition and adaptation, reflecting global developments and aligning with the International Platform on Sustainable Finance’s Common Ground Taxonomy. This initiative supports Hong Kong’s goal of becoming a leading green finance hub. The updates also aim to improve market clarity, enable better capital alignment with climate goals, and support decarbonization pathways. Key additions include definitions of eligible transition activities across high-emitting sectors and clearer guidance on adaptation-related investment. The Steering Group will continue engaging stakeholders and monitoring international practices as part of its roadmap to sustainability. A prototype of the taxonomy is expected to be launched later in 2026 for market consultation.