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.
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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
Venture Capital: Ada Ventures Closes $50M Fund For Early-Stage, ‘Overlooked’ Founders
UK-based Ada Ventures is a VC with a difference. It looks out for founders and markets missed by the mainstream of venture finance. (Read: Bold ideas and courageous founders that see something from an entirely different perspective – whoever and wherever they may be.) Ada just announced that it had closed a $50 million fund.
Alternative Investments/ESG: Fidelity Launches ETF Focused On Sustainable Emerging Market Companies
Joyce Chang, chair of global research at JPMorgan, told CNBC’s “Street Signs Asia” on Thursday that stocks in emerging markets “were very under-owned” considering the overall rally in the equity markets. She added that there was scope for “catch-up in 2021 for emerging markets,” and that they could rise as much as 20% in 2021.
Alternative Investments/ESG: Invest In Decarbonization Solutions Via The New iClima Earth ETF
iClima Earth is a London-based research firm that identifies which companies offer solutions that reduce greenhouse gases by avoiding emissions or by sequestering carbon dioxide already in the atmosphere. iClima has partnered with white-label ETF issuer HANetf to launch an ETF that would invest in such “enablers” of decarbonization.
Alternative Investments/ESG: TD Asset Management Launches Three New Equity ETFS With ESG Focus
TD Asset Management announced Tuesday the launch of three new ESG Equity ETFs to cater to investors looking for exposure to equity market indexes and companies with an ESG edge. The ETFs have a regional focus and track Canadian, U.S. and International equity indices respectively.
Venture Capital: A Fund From Curio Wellness For Diverse Entrepreneurs Seeking Franchises
Curio Wellness, a cGMP certified medical cannabis and wellness company, announced today the formation of a $30 million investment fund to provide start-up capital for upto 50 minority entrepreneurs.
Alternative Investments/ESG: Here’s FRDM, The ETF With A Conscience
The Life + Liberty Freedom 100 Emerging Markets index and ETF (BATS: FRDM) is an ETF with a conscience. It’s investing proposition is based upon humanitarian factors such as freedom of speech, the battle against human trafficking, and international trade access. The ETF allows investors exposure to the emerging markets with the exclusion of China and Russia.
Venture Capital: Astanor Ventures Launches $325M Fund For Impact Investing in Agtech
Based in Luxembourg, Astanor Ventures combines capital, technology, and sector expertise to invest in businesses that build regenerative, scalable, and nourishing food solutions. Using this philosophy, Astanor has invested in more than 20 startups. It is now raising $325 million to invest in food and agriculture technology companies across Europe and North America.
Alternative Investments/ESG: JP Morgan Launches Carbon Transition Focused Equity ETF
The new JPM Carbon Transition Global Equity UCITS ETF – USD (acc) from JP Morgan Asset Management provides investors exposure to companies that contribute to a reduction in carbon dioxide emissions. These are large or medium-sized companies drawn from industrialized countries globally and are constituents of the MSCI World Index.
Alternative Investments/ESG: The New Fixed Income SPDR ETF From State Street For ESG Investors
The new SPDR Bloomberg SASB Corporate Bond ESG Select ETF (NYSEARCA: RBND) from State Street Global Advisors expense the asset manager’s ESG lineup. The ETF suits investors seeking exposure to US dollar-denominated investment-grade corporate bonds with accompanying ESG attributes.
Artificial Intelligence: NotCo Launches An AI-Formulated, Plant-Based Milk
NotCo is a Latin American foodtech startup that uses artificial intelligence in the formulation of its plant-based milk NotMilk. Backed by VCs such as Bezos Expeditions, Maya Capital, Indie Bio, Humboldt, and L Catterton, the company has launched NotMilk at Whole Foods Markets across the U.S.
FinTech: Clarity AI Raises $15M For ESG Platform
Clarity AI is a fintech whose proprietary technology platform enables investors to understand the social and environmental impact of their portfolios. It is, therefore, a useful tool in the current times when ESG is front-of-mind for both retail and institutional investors.
Alternative Investments/ESG: London Based Sparrows Capital Adds ESG to Model Portfolios
Sparrow Capital’s platform-based model portfolio service, SCore MPS, is being augmented by the inclusion of the SCore Responsible MPS range of ESG portfolios.
Alternative Investments/ESG: Two New Sustainable Funds From Close Brothers
Close Brothers Asset Management (CBAM), which manages assets worth over £12.6 billion (US$ 16.4 billion), is part of the Close Brothers Group plc (LON: CBG), a FTSE 250 leading UK merchant banking group. Established in 1878, Close is one of the UK’s largest and longest established providers of financial advice and investment management. CBAM is launching two new sustainable funds following demand from clients and intermediaries for funds that invest in ways that show concern and respect for the natural environment, for human dignity, and responsible corporate behavior.
Artificial Intelligence: Pope Francis Asks For Divine Help On AI And Robotics
Pope Francis appealed to Catholics around the world to pray that robotics and AI would forever remain in the service of human beings.
Alternative Investments/ESG: The Wealthsimple Shariah World Equity ETF To Debut in Early 2021
Wealthsimple will unveil an ETF that will offer investors, particularly Muslims, exposure to a diversified index of Shariah-compliant stocks. Dubbed the Wealthsimple Shariah World Equity ETF, it will be managed by Toronto-based Mackenzie Investments, and is expected to list in early 2021.
Venture Capital: AgTech Startup Benson Hill Lands $150M
Benson Hill, an agtech startup based in St. Louis, announced Thursday its close of a $150 million Series D round led by Wheatsheaf and GV (formerly Google Ventures). It uses biotechnology and data science to enhance the nutritional qualities and sustainability of crops.
Alternative Investments/ESG: Brunel Allots £1.2B ($1.55B) Sustainable Mandate To Three Managers
The Brunel Pension Partnership has picked Ownership Capital, RBC Global Asset Management, and Nordea Asset Management to manage its new Sustainable Equities Fund of around £1.2 billion ($1.55 billion). Brunel is one of eight pooled Local Government Pension Scheme funds in the U.K.
Alternative Investments/ESG: European Investors Prioritizing ESG Factors In ETFs (Cerulli)
Research by Cerulli Associates shows that European investors hold companies that minimize their carbon footprint or run fossil-free operations in high regard. They will therefore prefer ETFs that incorporate these ESG factors into their portfolios. On the other hand, negative screening and exclusions are not so important.
Alternative Investments/ESG: Amundi Launches Sustainable ETF With Exposure To Japanese Stocks
The Amundi Index MSCI Japan SRI UCITS ETF offers exposure to large and mid-cap companies with outstanding Environmental, Social, and Governance (ESG) ratings in the Japanese market.
The new ETF is an extension of Amundi’s range of sustainable ETFs.
Alternative Investments/ESG: ESG Investments Are Now Mainstream And Core Portfolio Elements
Adrian Lowcock is head of personal investing at Willis Owen. He notes that ESG’s decisive outperformance during the last one, three, and five years shows the investing approach is here to stay.
Lowcock points to the 94.6% return from the MSCI ACWI ESG leaders index over five years compared to the 91.3% return from the MSCI ACWI index, as validation of his opinion.
Venture Capital: Yale Endowment’s Legendary Boss Swensen Moves To Change “Mostly White, Mostly Male”
David Swensen stands tall in the field of management of endowment funds at universities. He joined the Yale Investments Office at the age of 31. The fund was then worth $1 billion. Today, Swensen runs $31.2 billion for Yale, second only to Harvard’s corpus of $40 billion. On October 2, Swensen wrote to the investment management firms that handled Yale’s prodigious endowment fund.
Alternative Investments/ESG: How To See Through The “Ethical Veneer” (Bancroft Wealth)
Keir Ashman, pensions and investments specialist at Bancroft Wealth, points to the increasing demand for sustainable investments and says investors should be discerning in the choices if they want both return on investment (ROI) and return on principles (ROP).
Alternative Investments/ESG: A New UK Sustainable Equity UCITS ETF From HSBC
HSBC Global Asset Management launched earlier this month the HSBC UK Sustainable Equity UCITS ETF. Trading on the London Stock Exchange, the ETF is an extension of HSBC GAM’s range of sustainable ETFs. With a total expense ratio of just 0.12%, the ETF offers a highly cost-efficient solution to invest in UK equities with a sustainable slant.
Alternative Investments/ESG: Haitong MSCI China A Shares ESG ETF To Debut In Hong Kong On October 15
On October 15, the Haitong MSCI China A ESG ETF will open for trading on the Hong Kong Stock Exchange Main Board. It is the first ESG ETF offering exposure to Chinese A-shares to be listed on the Hong Kong bourse.