ESG and Sustainability
The rise of ESG factors in investment decision making will have a dramatic impact on returns and opportunities in the 21st century. A recent survey by LGT Capital Partners and Mercer showed that 57% of respondents believe that incorporating ESG standards into investment decisions will raise returns. Just 9% argued they reduce returns on investment.
Revaia, Europe’s largest female-founded venture capital firm, has successfully raised €150 million ($160 million) for its second fund, Revaia Growth II. The funding was secured from sovereign wealth funds, family offices, and institutional investors across Europe, with support from existing partners like Bpifrance and new backers such as mutual insurer Carac and the European Investment Fund.
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More Stories on ESG and Sustainability
HUGO BOSS has reinforced its commitment to sustainability by becoming the inaugural investor in Collateral Good Ventures Fashion I, a climate-centric venture capital fund aimed at expediting sustainability initiatives in the fashion industry. The company’s financial support, spanning five years, will subsidize select portfolio firms operating in startup, early growth, and potential stages.
Lunate Capital, based in the UAE, is partnering with global asset managers to create a $30 billion climate fund named Alterra, as announced at the COP28 summit in Dubai. Managed by Lunate and funded by the UAE, Alterra will consist of two components: Alterra Acceleration, allocating $25 billion to institutional capital, and Alterra Transformation, providing $5 billion in risk mitigation for investments in the Global South and emerging markets. Lunate Capital, part of Chimera Investment LLC and owned by the Abu Dhabi royal family, currently manages over $50 billion in assets and is head-quartered in Abu Dhabi.
SP Funds has expanded its suite of Sharia-compliant funds with the launch of The SP Funds S&P Global Technology ETF (SPTE) on the New York Stock Exchange. As North America’s largest family of Shariah-compliant exchange-traded funds (ETFs), SP Funds aims to provide investors access to cutting-edge technological advancements through SPTE.
In a groundbreaking initiative, artificial intelligence (AI) is aiding scientists in monitoring and safeguarding the iconic Australian koala population. A trial, employing smart sensors in New South Wales, harnesses AI technology to detect the distinct mating calls of male koalas. Activating upon hearing these guttural sounds, the sensors, fixed to trees, have been developed by the International Centre for Neuromorphic Systems (ICNS) at Western Sydney University.
Cemex Ventures, the venture arm of Mexican cement giant Cemex (NYSE: CX), has taken a notable stride in promoting sustainability in the construction industry through a strategic investment in Vizcab, a French startup at the forefront of revolutionizing carbon footprint considerations in buildings. Founded in Lyon in 2015 by Thomas Jusselme and Guillaume Lafont, Vizcab employs a data-driven approach to calculate the Life Cycle Analysis (LCA) of buildings.
Venture Capital: Morgan Stanley’s Next Level Fund Raises $50M To Level The Field For Underrepresented Founders
Morgan Stanley Investment Management (MSIM) has successfully closed its Morgan Stanley Next Level Fund, L.P. at the targeted $50 million in capital commitments. This fund, created in collaboration with Hearst, Microsoft (NASDAQ: MSFT), and Walmart (NYSE: WMT), is part of MSIM’s $200 billion alternative business. The strategic investors include corporate partners such as Hearst, Microsoft, Walmart, Altria (NYSE: MO), Ten Figures Ventures, and Phalanx Impact Partners.
ESG.AI, a Canadian ESG decision support company, has collaborated with the London Stock Exchange Group (LON: LSEG) to introduce an advanced ESG analytics platform. This platform aids organizations and consultancies in visualizing ESG data, enhancing understanding, data quality, and providing advanced modeling, planning, and impact analysis capabilities.
California Public Employees’ Retirement System (CalPERS), a $462 billion pension giant, has pledged to invest $100 billion in low-carbon assets as part of a sustainable investing strategy. This commitment aims to accelerate the reduction of carbon emissions within its portfolio, with the goal of halving the carbon emissions intensity of its investments by 2030. Currently holding nearly $47 billion in low-carbon assets, CalPERS aims to contribute significantly to the fight against climate change while improving long-term investment returns.
Deep Sky Corp., a Canadian startup founded by Frederic Lalonde, CEO of Hopper Inc., has secured $55 million in funding from venture capital firms and government entities to establish a carbon-capture plant in Quebec. Lalonde, known for Hopper, one of Canada’s top tech startups, initiated Deep Sky with the goal of removing millions of tons of emissions from the atmosphere and oceans. The funding comes from investors like Whitecap Venture Partners, BrightSpark Ventures, and government support from both Canada and Quebec.
Tenet Energy Inc., a climate fintech platform facilitating affordable electric vehicle (EV) ownership, has successfully concluded a funding round exceeding $30 million. This includes over $10 million from a Series A investment and a substantial $20 million warehouse debt facility. Led by venture capital firm Nyca Partners, the Series A funding will support the expansion of Tenet’s leading EV financing product and the scaling of TenetConnect, a new digital renewable energy platform aimed at reducing charging costs on EV owners’ utility bills.
DWS has introduced three new Xtrackers ETFs aimed at mitigating investment risks related to biodiversity loss. These ETFs provide an opportunity to invest in companies globally, particularly in Europe and the US, with a reduced negative impact on the earth’s ecosystems compared to the market average. Biodiversity, essential both ecologically and economically, is highlighted as pivotal, with estimates valuing ecosystem services at USD 125 to 140 trillion annually.
HANetf, a European ETF white labeler, is set to introduce the INQQ India Internet & Ecommerce ESG-S UCITS ETF, aiming to provide investors with targeted exposure to India’s swiftly advancing digitization. India, now the world’s most populous country, is seen as the “new China,” attracting global attention due to its impressive economic growth rates. The IMF projects a 6% growth for India’s economy this year, positioning it as the fastest-growing major economy in 2023 and 2024.
Rockwell Automation, Inc. (NYSE: ROK), a global leader in industrial automation and digital transformation, has made a significant strategic investment in Momenta’s Industry 5.0 Fund. This venture capital and value creation fund, established in collaboration with the EU Commission, aims to support startups that are dedicated to advancing resilient, sustainable, and human-centric industrial operations.
First Trust Advisors has introduced a novel exchange-traded fund (ETF) designed to invest in companies hailing from emerging markets that prioritize human dignity. This innovative fund, known as the First Trust Emerging Markets Human Flourishing ETF (FTHF), is now listed on the New York Stock Exchange under the ticker symbol FTHF.
Fidelity International has recently introduced two active fixed income ETFs, the Fidelity Sustainable EUR Corporate Bond – Paris Aligned Multifactor UCITS ETF and the Fidelity Sustainable USD Corporate Bond – Paris Aligned Multifactor UCITS ETF. These ETFs, categorized as Article 9 under the Sustainable Finance Disclosure Regulation, were listed on the London Stock Exchange and Xetra on October 23.
Venture Capital: Kfw Capital Introduces “Emerging Manager Facility” To Back Small And Gender-Diverse VC Funds
Germany’s state-backed LP KfW Capital has introduced the ‘Emerging Manager Facility’ (EMF) to enhance diversity within the country’s VC ecosystem, an issue pervasive throughout Europe. The EMF is designed to invest in smaller VC funds with €50 million in assets under management, many of which are newly entering the VC market, and are managed by women or gender-diverse teams. These chosen VC funds can receive a maximum of €12.5 million or up to 25% of the fund’s total size.
The New York City Economic Development Corporation (NYCEDC) has introduced the Venture Access Alliance, a collaboration involving more than 70 startup investors in New York City. This initiative aims to enhance diversity within the city’s technology and venture ecosystem. The Alliance’s mission includes fostering diverse workforces, sourcing deals from Black, Indigenous, People of Color (BIPOC), and female founders, reevaluating due diligence procedures, tracking improvements in diversity data annually, and providing direct mentorship to founders. Key leaders of this effort include Fred Wilson of Union Square Ventures and Jarrid Tingle of Harlem Capital Partners, with support from the Ford Foundation, Annenberg Foundation, and Tech:NYC.
Digital Assets: Swiss Hospitality Company Gabbani Converts Surplus Energy From Food Facility For Use In Bitcoin Mining
Gabbani has installed a 100k KW solar panel production system at its production facility. Gabbani, a renowned hospitality company based in Lugano, is set to elevate Lugano’s reputation as the premier European blockchain hub. The company’s groundbreaking project integrates sustainable energy practices with cryptocurrency mining, specifically Bitcoin mining. This initiative leverages excess energy generated by…
DWS has unveiled a set of four high dividend ETFs in Europe, catering to environmentally conscious investors. These exchange-traded funds (ETFs) are linked to indices within the MSCI High Dividend Yield Low Carbon SRI Screened Select Index family, focusing on various regional markets, including global developed, US, European, and eurozone stocks. The quartet includes the Xtrackers MSCI World High Dividend Yield ESG UCITS ETF, the Xtrackers MSCI Europe High Dividend Yield ESG UCITS ETF, the Xtrackers MSCI EMU High Dividend Yield ESG UCITS ETF, and the Xtrackers MSCI USA High Dividend Yield ESG UCITS ETF.
HSBC Asset Management has introduced a new addition to its range of thematic ETFs, unveiling the HSBC NASDAQ Global Climate Tech UCITS ETF (HNCT). This ETF, with a total expense ratio (TER) of 0.50%, is now listed on the London Stock Exchange and will soon be available on the Deutsche Boerse and Borsa Italiana.
KraneShares, a prominent asset management firm renowned for its global exchange-traded funds (ETFs) and groundbreaking investment strategies, has unveiled the KraneShares MSCI China Clean Technology Index UCITS ETF (Ticker: KGRN) on the London Stock Exchange (LSE), Borsa Italiana, and Deutsche Börse Xetra. This ETF, KGRN, is a passive fund that mirrors the MSCI China IMI Environment 10/40 Index, centered around four pivotal Clean Technology environmental themes: Alternative Energy, Sustainable Water, Pollution Prevention, and Energy Efficiency.
Venture Capital: Laphair Capital Partners Launches $100M Alpha Fund I, Targeting Companies Focused On Social Responsibility
LaPhair Capital Partners has unveiled its flagship venture capital fund, Alpha Fund I, with a substantial goal of raising $100 million for investment. This fund has a unique focus on social responsibility within high-growth markets, aiming to address systemic disparities by serving underserved communities. The fund’s strategy centers on early-stage companies and aspires to achieve a minimum return of 35 percent.