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.
Top Story
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.
Get Daily Updates
Subscribe to DailyAlts Today to get Alternative Investment news, insight, and commentary delivered straight to your inbox every day.
More Stories on ESG and Sustainability
Alternative Investments/ESG: HSBC Launches Europe ex UK Sustainable Equity Ucits ETF
HSBC Asset Management has introduced a Europe ex UK Sustainable Equity Ucits ETF, classified as an Article 8 product under the EU’s Sustainable Finance Disclosure Regulation (SFDR). The HSBC Europe ex UK Sustainable Equity UCITS ETF expands its sustainable range after the recent launches of the firm’s Paris Aligned Benchmark and fixed income sustainable ranges.
Digital Assets: Algorand Launches Self-Sustaining Smart Contract To Automate Carbon Offsets
Algorand, the blockchain network that was designed from the ground up to be energy-efficient, will implement the first smart contract to automate the offsetting of carbon emissions. The smart contract automatically allocates a portion of every transaction fee to offset its carbon emissions.
Alternative Investments/ESG: New Japanese ESG Equity ETF Gets EUR 300M From Varma
Finnish pension insurance company Varma has invested EUR 300 million in the NEXT FUNDS Solactive Japan ESG Core Index ETF that was listed on the Tokyo Stock Exchange on April 8. The ETF, custom-designed for Varma, is the largest ever environmentally responsible ETF to be listed in Japan.
Venture Capital: AWS Launches $30M Accelerator Fund For Underrepresented Entrepreneurs
Amazon Web Services (AWS), an Amazon.com, Inc. company (NASDAQ: AMZN), has earmarked a spend of $30 million over three years to support early-stage startups led by Black, Latino, LGBTQIA+, and women founders. The AWS Impact Accelerator will invest up to $225,000 in the form of combined cash and credits, and provide training, mentoring, and technical guidance, as well as introductions to Amazon leaders and teams, networking opportunities with investors, and advisory support.
Venture Capital: Air Company, Which Makes Carbon-Negative Vodka From Air, Scores $30M Raise
In 2019, carbon technology startup Air Company launched Air Vodka, the world’s first alcoholic beverage made directly from carbon dioxide. The company announced Tuesday its Series A funding of $30 million led by Carbon Direct Capital Management with participation from Toyota Ventures, JetBlue Technology Ventures, and Parley for the Oceans.
Alternative Investments/ESG: Low Carbon Singapore Companies Now In An ETF Wrapper
A new ETF that focuses on Singapore companies with low carbon intensity is being launched by OCBC Securities and Lion Global Investors on April 28, becoming the first such ETF in Singapore.
Alternative Investments/Real Estate: Global X Launches Green Building ETF
Global X has launched a new Green Building ETF that will allow investors exposure to the theme of rising global demand for environmentally-friendly buildings. With buildings responsible for up to 38% of energy-related carbon emissions globally and 50% of all extracted materials, green buildings are key to reducing building-related emissions and improving urban resiliency in the face of climate change.
Alternative Investments/ESG: Fidelity Launches Five Fixed Income Sustainable Funds And ETFs
Fidelity Investments has strengthens its suite of sustainable fixed income funds with the launch of five new fixed income sustainable funds and ETFs – Fidelity Sustainable Core Plus Bond Fund (FIAEX), Fidelity Sustainable Core Plus Bond ETF (FSBD), Fidelity Sustainable Low Duration Bond Fund (FAPGX), Fidelity Sustainable Low Duration Bond ETF (FSLD), and Fidelity Sustainable Intermediate Municipal Income Fund (FSIKX).
Venture Capital/ESG: Stripe And Big Techs Launch $925M Worth Of ‘Advance Market Commitment’ For Carbon Capture Startups
Fintech giant Stripe is joining hands with several tech companies, including Alphabet (NASDAQ: GOOGL) and Meta (NASDAQ: FB) to form Frontier, which will spend nearly $1 billion to assure product offtake from carbon capture startups. Shopify (NYSE: SHOP) and McKinsey are also chipping in. Frontier will be a wholly owned subsidiary of Stripe.
Alternative Investments/ESG: BlackRock Launches Four New Sector ESG ETFs
BlackRock listed the iShares MSCI World Materials Sector ESG UCITS ETF (WMTS), the iShares MSCI World Industrials Sector ESG UCITS ETF (WINS), the iShares World Energy Sector ESG UCITS ETF (WENE) and the iShares MSCI World Communication Services Sector ESG UCITS ETF (WCMS) on the Euronext Amsterdam on April 11.
Venture Capital: MyForest Foods Raises $15M Venture Loan To Scale Plant-Based Bacon
MyForestFoods, previously known as Atlast, has secured venture loan financing from Connecticut’s Horizon Technology Finance Corporation and a private investment vehicle connected to Horizon, to scale up its production of mycelium-based bacon. The investors funded $7.5 million each.
Alternative Investments/ESG: Dimensional Has Four Sustainable ETFs On The Anvil
Dimensional Fund Advisors is planning to launch a suite of four new sustainable ETFs offering exposures to the US, International, Emerging and Fixed Income markets, with a focus on lower emissions. Currently listed Dimensional ETFs aggregate AUM of about US$48 billion across 20 funds.
Alternative Investments/ESG: Neuberger Berman Launches Carbon Transition ETF
Neuberger Berman on Thursday launched its first actively managed ETFs covering the themes of technology disruption, digitally connected consumers, and infrastructure-enabling decarbonization. The new ETFs are Neuberger Berman’s Connected Consumer ETF (NYSEARCA: NBCC); Carbon Transition & Infrastructure ETF (NYSEARCA: NBCT); and the Disrupters ETF (NYSEARCA: NBDS).
Venture Capital: Better Origin, Maker Of Modular, AI-Powered Insect Farms, Raises $16M
Better Origin works on the premise that insects serve as carbon-negative animal feed because they need far less water and land compared to traditional feeds like soy. By cultivating them onsite, a farm can save as much as 574 tonnes of CO₂e a year. What’s more, the insects are packed with protein and other nutrients that are good for the animals and also boost farm productivity. Better Origin announced a Series A raise of $16 million.
Venture Capital: Consumer Tech Subscription Platform Grover Raises $330M In Series C Funding
Berlin-based Grover, an online platform that offers tech products for monthly rental subscriptions, has nabbed a massive $330 million Series C round. Of this $110 million came in the form of equity with Energy Impact Partners as lead investor. Fasanara Capital put in $220 million in the form of debt financing.
Venture Capital: Carbon Removal Pioneer Climeworks Raises $650M
It’s the largest financing ever in a carbon capture startup. Climeworks, the leading startup developing technology to remove carbon dioxide from the air, announced today its 600 million francs ($650 million) funding round led by co-led by Partners Group (acting on behalf of its clients) and GIC, with further participation from Baillie Gifford, Carbon Removal Partners, Global Founders Capital, John Doerr, M&G, Swiss Re, as well as other new and existing shareholders including long-term investor and anchor shareholder BigPoint Holding AG.
Alternative Investments/ESG: AXS Investments Continues Acquisition Spree, Acquires Six Tuttle ETFs
AXS Investments, a leading asset management firm providing investment opportunities in the alternatives space, has acquired a suite of ETFs from Tuttle Capital Management. The six ETFs together have assets under management of $417 million and include the $334 million Tuttle Capital Short Innovation ETF (NASDAQ: SARK), the inverse bet against Cathie Wood’s flagship ARK Innovation ETF (NYSEARCA: ARKK).
Venture Capital: Deepki, Which Provides ESG Intelligence For Real Estate, Raises $166M
Deepki, a French startup, offers a SaaS platform that helps real estate investors, owners and managers improve the ESG performance of their real estate assets and in the process, enhance their value. Claimed to be the only such ESG intelligence company in the world with a focus on real estate, Deepki collected €150 million in a Series C round of funding that was co-led by One Peak and Highland Europe, two London-based VC firms specializing in European investments. Bpifrance, Revaia, Hi Inov and Statkraft Ventures also participated in the funding.
Alternative Investments/ESG: The Goldman Sachs Bloomberg Clean Energy Equity ETF Addresses $100T Opportunity
Goldman Sachs Asset Management launched last month the Goldman Sachs Bloomberg Clean Energy Equity ETF (BATS: GCLN). Investors get exposure to the USD100 trillion+, multi-decade clean energy investment opportunity offered by companies with the greatest exposure to the clean energy transition by seizing the secular growth opportunity to combat climate change and provide clean, affordable and reliable energy.
Digital Assets: Bengal Energy Will Mine Crypto From Stranded Gas Using Rigs Installed In Portable ‘Dongas’
“Stranded” gas, or gas that cannot reach a distribution pipeline, must necessarily be flared off by energy companies. This is a huge waste of energy that is extremely harmful for the environment. Bengal Energy (TSX: BNG) plans to use the gas to generate energy that will drive crypto mining rigs housed inside makeshift, portable housing located close to the gas source. A win-win situation, because it generates revenue from the sale of the crypto, and avoids wastage of gas and pollution.
Venture Capital: Chief, A Private Network For Women Executives, Raises $100M
Chief, a membership network focused on connecting and supporting women executive leaders, has raised a $100 million Series B round led by CapitalG, the independent growth fund of Google parent company Alphabet (NASDAQ: GOOGL). Previous investors General Catalyst, GGV Capital, Inspired Capital, Primary Venture Partners, Flybridge Capital Partners, and BoxGroup also participated.
Alternative Investments/ESG: Avantis Debuts A Trio Of Sustainable ETFs
Avantis Investors, an American Century offering that combines the latest financial science with common sense investing principles and cost-effective implementation, has launched its first three environmental, social and governance (ESG) ETFs: Avantis Responsible U.S. Equity ETF (NYSEARCA: AVSU); Avantis Responsible International Equity ETF (NYSEARCA: AVSD); and Avantis Responsible Emerging Markets Equity ETF (NYSEARCA: AVSE).
Alternative Investments/ESG: Mirae Launches Three New Global X ETFs In Hong Kong
Seoul-headquartered Mirae Asset Global Investments has launched three new ETFs in Hong Kong under its Global X banner. The Global X Hang Seng ESG ETF (HKG: 3029), Global X Metaverse Theme Active ETF (HKG: 3006), and Global X Electric Vehicle and Battery Active ETF (HKG: 3139) are listed on the Hong Kong stock exchange.
Alternative Investments/ESG: BNY Mellon Launches Active ESG Corporate Bond ETF
NY Mellon Investment Management launched the BNY Mellon Responsible Horizons Corporate Bond ETF (RHCB) last week. The actively managed ETF will focus on corporate debt securities issued by companies that demonstrate attractive investment attributes and business practices, based on Prime, a proprietary ESG rating methodology developed by Insight Investment, the sub-advisor to the new ETF. Insight Investment is a BNY Mellon investment firm with AUM of $1.2 trillion.