News in the spotlight: FCA invites ESG rating providers to share feedback in voluntary survey
The UK Financial Conduct Authority (FCA) has launched a voluntary survey for ESG ratings providers to help shape future regulations on ESG ratings and sustainability disclosures. This initiative follows the UK government’s draft legislation to bring ESG ratings providers under regulatory oversight.
Products & Services
Golding Capital Partners raises EUR 115.5mn for impact fund
Golding Capital Partners has completed the final closing of its first private equity impact fund, raising €115.5 million from institutional investors in Germany, Switzerland, Sweden, and Portugal. The “Golding Impact 2021” fund has already invested in nine private equity funds covering over 100 companies worldwide, with plans to expand its portfolio to more than 200 companies by 2025. The first successful exit occurred in January when Inverness Graham sold Concord Servicing, a fintech company supporting solar energy financing. Golding is preparing a successor fund focused on climate technologies in Europe and North America, set to launch in Q4 2025. According to a Capgemini report, 62% of global business leaders plan to increase investments in sustainable technologies, with particularly high demand for climate tech (72%) and sustainable product development (70%) (source: goldingcapital.com).
Sienna Investment Managers and Greenpods finalize financing for agriculture farm
Sienna Investment Managers (Sienna IM) has provided a €2 million loan to GreenPods for its La Esperanza farm in Aragon, Spain, supporting the planting of almond and olive trees and ecosystem rehabilitation. GreenPods, a specialist in regenerative agriculture, acquired the farm in May 2024 after the success of its first project, La Granja, the largest organic almond orchard in France. The farm currently has 30 hectares of almond trees, with plans to expand to 23 more hectares of almonds and 52 hectares of olives by summer 2025. The funding will be used for tree planting, irrigation, machinery, and soil restoration under regenagri certification.
L&G committed additional $235m to nature conservation and sustainable development in Emerging Markets
L&G has committed an additional $235 million to nature conservation and sustainable development in emerging markets, bringing its total commitment to over $1.1 billion. This investment, made through L&G’s Future World Multi-Asset Fund and Retirement Income Multi-Asset Fund, supports projects focused on biodiversity conservation, social infrastructure, and clean energy. L&G has already invested $465 million in debt conversions for nature in Belize, Ecuador, and Gabon and nearly $350 million in bonds financing critical infrastructure in Africa and Eastern Europe. The first direct investment under the new Nature and Social Outcomes strategy was completed in December 2024, supporting Ecuador’s Biocorridor Amazónico program, which aims to protect 4.6 million hectares of forest and 18,000 km of freshwater. L&G’s approach leverages innovative financing to generate strong returns while contributing to sustainability goals.
Norges Bank Investment Management (NBIM) acquires 49% stake in two offshore wind construction projects for EUR 1.4bn
Norges Bank Investment Management has acquired a 49% stake in two offshore wind projects, Thor in Denmark and Nordseecluster in Germany, for approximately €1.4 billion, valuing the projects at around €2.87 billion. The total commitment, including funding for construction, is expected to reach €4 billion, with no external debt financing involved. The seller, RWE, will retain a 51% ownership stake and continue as the operator of both wind farms. The projects, currently under construction, are scheduled to become operational between 2027 and 2029. Together, they will have a total capacity of 2,640 MW, with Thor using 72 turbines to power over one million Danish homes and Nordseecluster utilizing 104 turbines to supply 1.6 million German households. The investment is backed by long-term contracted revenues, ensuring stable cash flows and reduced risk while supporting Europe’s transition to renewable energy (source: nbim.no).
Regulations, Law and Frameworks
ICMA published recommendations and insights for sustainable funds
The International Capital Market Association (ICMA) has released a new paper examining the evolving regulatory landscape for the sustainable fund market. The report highlights the significant impact of recent EU and UK regulations on fund categorization, labeling, and naming, following the industry’s adaptation to the EU’s SFDR in 2019. Based on targeted research, ICMA outlines key market implications and proposes a roadmap for regulators and stakeholders. The recommendations focus on ensuring consistency in future SFDR reviews, fostering inclusiveness through market taxonomies and assessment tools, and supporting transition-themed funds for investments in hard-to-abate sectors.
FCA invites ESG rating providers to share feedback in voluntary survey
The UK Financial Conduct Authority (FCA) has launched a voluntary survey for ESG ratings providers to help shape future regulations on ESG ratings and sustainability disclosures. This initiative follows the UK government’s draft legislation to bring ESG ratings providers under regulatory oversight. The survey aims to gather insights into the business models, methodologies, and policies of ESG ratings providers. The responses will inform the FCA’s cost-benefit analysis and policy development, ensuring a regulatory framework that is proportionate and market-driven. Additionally, the FCA is considering aligning climate-related disclosure rules for listed companies with the International Sustainability Standards Board (ISSB) and strengthening transition plan disclosure expectations under the Transition Plan Taskforce (TPT) framework. Insights from the survey will contribute to these regulatory developments.
The UK government releases nature finance standards
The UK has launched new green finance standards to boost nature investments and prevent greenwashing. Developed by the British Standards Institution (BSI), the Overarching Principles Standard ensures credibility in nature restoration projects, supporting wetlands, water quality, and flood resilience. Positioning the UK as a leader in nature markets, the standard aligns economic growth with environmental goals. It provides businesses and land managers with a consistent framework for sustainable investments. BSI is also consulting on a Natural Carbon Standard for high-integrity carbon credits. The Overarching Principles Standard (BSI Flex 701) is now available for market adoption.
European Council approves postponement of application of certain corporate sustainability reporting and due diligence requirements
The Council has agreed on its position regarding the ‘Stop-the-clock’ mechanism, a key initiative aimed at simplifying EU rules and enhancing competitiveness. This measure, part of the broader ‘Omnibus I’ package, postpones the implementation of corporate sustainability reporting and due diligence requirements, providing businesses with much-needed legal certainty. By delaying these obligations, the EU aims to reduce administrative burdens, particularly for SMEs, and allow time for further discussions on proposed regulatory changes. The Polish presidency has made simplification a priority, recognizing the significant impact of these requirements on businesses across the EU. Member states widely support the initiative, acknowledging the importance of a clear and predictable regulatory framework. The postponement will give companies additional time to prepare while ensuring that upcoming changes are well-aligned with market needs. The next step involves negotiations with the European Parliament, with a vote on the request for an urgent procedure scheduled for April 1, 2025. A swift agreement between co-legislators is expected to help finalize the adjustments in line with the EU’s broader agenda to boost economic growth and competitiveness.
ESG and Green Bond Issuances
Kommuninvest launches its first social bond
Kommuninvest is taking a major step towards social sustainability by launching its first social bond. The bond has a fixed interest rate, a three-year maturity, and will mature on September 1, 2028. It will be presented to investors on March 25, with Danske Bank, SEB, and Swedbank acting as Joint Lead Managers. The proceeds will be used to finance projects with clear social objectives, supporting sustainable development. By mid-March, Kommuninvest had already allocated SEK 10.9 billion in Loans for Social Sustainability to 27 projects across 21 of its members. A global investor call on March 25 will introduce the Social Bonds Framework, and the transaction is expected to take place during the week of March 31, subject to market conditions.