News in the spotlight: Schroders Greencoat launches Global Energy Infrastructure LTAF
Schroders Greencoat, part of Schroders Capital, has received FCA approval to launch the UK’s first wealth-dedicated Long-Term Asset Fund (LTAF) focused on energy transition infrastructure. The new LTAF will invest in a global portfolio of assets, including large-scale wind farms, solar parks, and emerging technologies like green hydrogen and battery storage.
ESG Data & Analytics
Sylvera launched biochar carbon removal ratings
Carbon data provider Sylvera has introduced its first carbon dioxide removal (CDR) ratings for biochar projects, aiming to enhance transparency and credibility in the carbon market. Biochar, created by heating biomass in the absence of oxygen, can sequester carbon for centuries while improving soil fertility. Despite its potential, biochar faces challenges such as assessing its full environmental impact and preventing unintended fossil fuel demand. To address these concerns, Sylvera’s Biochar Ratings Framework evaluates projects based on carbon removal effectiveness, permanence, and economic feasibility. This initiative aligns with the growing interest from major companies like Microsoft, Google, and Swiss Re, which have made significant biochar-based carbon credit purchases. Founded in the UK in 2020, Sylvera raised $57 million in 2023 to expand its carbon intelligence platform and improve data-driven insights for organizations.
Regulations, Law and Frameworks
The Investor Group on Climate Change (IGCC) has released its 2024 Annual Report
The IGCC 2024 Annual Report: A Transformative Year for Investor Climate Action highlights substantial progress in mobilizing institutional investors across Australia and New Zealand to address climate risks and opportunities. In 2024, IGCC grew its membership to 108 investors managing $5 trillion locally and $40 trillion globally. Key achievements include successful advocacy for mandatory climate-related financial disclosures and the launch of the Climate Action Pays Off campaign, which reached 17 million people, promoting the economic benefits of climate action. The Climate Finance & Investment Summit also saw record attendance, focusing on investment strategies for a net-zero economy. Additionally, the report emphasizes advancements in managing physical climate risks, with over 80% of members assessing these risks and 58% implementing response measures. IGCC’s efforts to support a just transition demonstrate its commitment to ensuring climate action is both effective and equitable, positioning investors to achieve their net-zero goals (source: igcc.org.au).
China releases framework for sovereign green bonds
China’s Ministry of Finance has introduced a framework for sovereign green bonds, setting the stage for issuing offshore green bonds and attracting global capital to support its green development. Funds raised under this framework will be directed to eligible green projects listed in the central fiscal budget, targeting environmental goals such as climate change mitigation, natural resource protection, pollution control, and biodiversity preservation. This initiative aims to diversify high-quality green bond products in the global market and strengthen international investment in China’s green and low-carbon development efforts.
European Commission publishes first packages of proposals to simplify EU sustainability regulations
The European Commission has introduced a new package of proposals to simplify EU rules, enhance competitiveness, and unlock additional investments, targeting over €6.3 billion in annual administrative cost savings. The proposals focus on streamlining sustainability reporting (CSRD and EU Taxonomy), due diligence, and the Carbon Border Adjustment Mechanism (CBAM), primarily benefiting SMEs by reducing compliance burdens. Key measures include exempting 80% of companies from CSRD obligations, postponing reporting deadlines, and simplifying CBAM for small importers. The changes are expected to mobilize around €50 billion in public and private investments, supporting the EU’s green and low-carbon development goals. The legislative package now awaits approval by the European Parliament and the Council (source: finance.ec.europa.eu).
Product & Services
Schroders Greencoat launches Global Energy Infrastructure LTAF
Schroders Greencoat, part of Schroders Capital, has received FCA approval to launch the UK’s first wealth-dedicated Long-Term Asset Fund (LTAF) focused on energy transition infrastructure. The new LTAF will invest in a global portfolio of assets, including large-scale wind farms, solar parks, and emerging technologies like green hydrogen and battery storage. It will serve as a feeder fund into the Schroders Capital Semi-Liquid Energy Transition Fund, providing UK wealth clients with diversified exposure to renewable energy investments. With approximately £9.3 billion in assets under management, Schroders Greencoat continues to expand its range of investment products in response to the growing demand for climate solutions. This launch follows the introduction of the Schroders Capital Global Private Equity LTAF last year, reinforcing Schroders’ commitment to innovative and sustainable investment solutions (source: schroderscapital.com).
AllianzGI updates its proxy voting policies for 2025
Allianz Global Investors (AllianzGI) has introduced new proxy voting guidelines for 2025, focusing on ESG-linked executive remuneration, net-zero strategies, gender diversity, and minority shareholder rights. In 2024, AllianzGI participated in 8,879 shareholder meetings and voted on around 90,000 proposals, opposing or abstaining on at least one item at 72% of these meetings. The firm voted against 22% of director elections due to concerns about tenure, overboarding, and committee independence, and opposed 41% of remuneration-related proposals, particularly in Europe. Additionally, AllianzGI’s support for climate-related shareholder resolutions in the US was high at 98%, reflecting its commitment to sustainability and responsible investment practices.
Dubai Islamic Bank Publishes its First Sustainability-Linked Finance Facilities financing Framework
Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE, has launched its first Sustainability-Linked Finance Facilities (SLF) financing Framework, marking a global first for any Islamic bank. This Framework aligns with ICMA’s Sustainability-Linked Loan Principles (SLLBG) and aims to support UAE’s Net Zero agenda by financing initiatives that contribute to climate change mitigation. Key elements of the Framework include:
- Eligibility Criteria: Clear definitions for SLF Facilities that contribute to sustainability goals.
- Performance Metrics: Predefined Key Performance Indicators (KPIs) and Sustainability Performance Targets (SPTs).
- Impact Reporting: An annual allocation and impact report with a Second Party Opinion (SPO) by ISS-Corporate and limited assurance by an independent party.
Dr. Adnan Chilwan, DIB’s CEO, highlighted that this initiative is part of the bank’s commitment to achieving 15% of its portfolio in Sustainable Finance by 2030. Standard Chartered Bank supported the Framework’s development, and DIB has also renewed its Asset-Based Sustainable Finance Framework in 2024, which received a positive assessment from ISS.
Goldman Sachs Asset Management launches biodiversity bond fund
Goldman Sachs Asset Management (GSAM) has launched the Goldman Sachs Biodiversity Bond Fund to invest in bonds supporting UN Sustainable Development Goals (SDGs) focused on biodiversity conservation and restoration. According to Bram Bos, Global Head of Green, Social, and Impact Bonds at GSAM, the fund addresses growing investor interest in biodiversity alongside climate goals. The fund will invest in labeled green, social, and sustainability bonds, as well as unlabeled bonds from companies contributing to SDGs such as SDG 6, 12, 14, and 15. It will primarily focus on investment-grade corporate bonds from developed and emerging markets, offering global exposure. The fund will also comply with Article 9 of the Sustainable Finance Disclosure Regulation (SFDR), ensuring high transparency and sustainability standards.