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.
Brookfield Asset Management (NYSE: BAM) announced the final close of its $15 billion Brookfield Global Transition Fund, receiving investments from institutions and private wealth channels including public and private pension plans, sovereign wealth funds, insurance companies, endowments and foundations, financial institutions, and family offices. The fund saw solid demand significantly beyond its initial hard cap and the final fund size was oversubscribed. Brookfield itself is the largest investor in the Fund.
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More Stories on ESG and Sustainability
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.
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.
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).
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.
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.
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).
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.
ROC Investments, a California-based investment company that aims to be the market leader in measuring the character habits of public company senior leadership, has launched the ROC (Return On Character) ETF (BATS: ROCI).
Global asset management firm Krane Funds Advisors launched the KraneShares Global Carbon Transformation ETF (Ticker: KGHG) on the NYSE on March 16. To be managed by award-winning portfolio manager Roger Mortimer, the ETF will address the theme of decarbonization amidst climate targets.
Millions of tons of coal waste litter across Pennsylvania at coal mining sites that were abandoned after their useful coal was mined and sold to steel mills and power plants. Stronghold Digital Mining (NASDAQ: SDIG) has devised a method to turn these waste mountains into energy that can be used to mine bitcoin.
The China International Capital Corporation Hong Kong Asset Management Limited, a wholly owned subsidiary of China International Capital Corporation Limited, launches today the CICC Carbon Futures ETF on the Hong Kong Stock Exchange. Investors will therefore get access to one of the largest carbon markets in the world.
Alternative Investments/ESG: BNP Paribas Launches ETFs Targeting Hydrogen And Sustainable Real Estate
BNP Paribas Asset Management has launched ESG-filtered thematic ETFs targeting real estate and the hydrogen economy. The BNP Paribas Easy ECPI Global ESG Hydrogen Economy UCITS ETF (HYDRO FP) provides thematic equity exposure to companies involved in hydrogen economy. Meanwhile, the BNP Paribas Easy FTSE EPRA/NAREIT Global Developed Green CTB UCITS ETF (GRCTB FP) offers exposure to developed market REITS and real estate companies while tilting towards the most environmentally friendly securities.
Alternative Investments/ESG: Global X Launches Four China ETFS, Including Clean Energy And EVs, In Europe
Global X has launched in Europe four new thematic, China-focused ETFs that address the clean energy, electric vehicles and batteries, cloud computing , and biotech megatrends. The new ETFs follow Global X’s recent thematic launches focusing on solar, agtech and food innovation, hydrogen and wind energy. The firm also introduced bitcoin and ether ETPs earlier this month.
TPG Rise Climate comes on board Monarch Bioenergy, a joint venture between Roeslein Alternative Energy and Smithfield Foods as an equal partner with an undisclosed investment. Monarch uses Roeslein’s technology and Smithfield’s farming practices to convert methane emissions from animal farming into renewable natural gas (RNG) that can power homes, businesses and cars.
VegTech Invest advisory has launched the VegTech Plant-based Innovation & Climate ETF (Ticker: EATV), its first financial product. The ETF offers exposure to publicly traded companies actively innovating with plants and plant-derived ingredients and producing primary products that are animal-free. These companies also have a beneficial impact on the environment and solve certain pressing global problems.
On December 28, the first lithium-ion cell to have been fully designed, developed and assembled at a gigafactory by a homegrown European battery company marked Northvolt Ett’s commencement of production at its Skellefteå facility in northern Sweden. The company is a rival to Tesla’s (NASDAQ: TSLA) battery division.
Alternative Investments/(non)-ESG: The BAD Investment Company Launches ETF for Betting, Alcohol, Drugs
The BAD Investment Company has launched a new ETF as “an intriguing alternative for a new wave of retail investors who may be frustrated with aspects of the ESG movement.” The BAD ETF tracks the EQM BAD Index (BADIDX).
In what is claimed to be the largest investment round for a cultured meat startup till date, Israel-based Future Meat announced the close of its $347 million Series B round co-led by ADM Ventures, the venture investing arm of ADM (NYSE: ADM), the Menora Mivtachim pension and insurance fund which manages over $85 billion in assets, and S2G Ventures.
Venture Capital: Nicola and Andrew Forrest’s Minderoo Foundation Launches $100M Strategic Impact Fund
The Strategic Impact Fund is entirely women-led. The $100 million Strategic Impact Fund by Minderoo Foundation, owned by Nicola and Andrew Forrest, will invest in ‘impact’ projects that address issues such as gender inequality, ending modern slavery, and freeing the oceans of plastic and making them more sustainable. The fund’s investing aims to have a…
Stenon, a German agtech that is providing laboratory independent real-time soil analysis, has raised a $20 million Series A round from Founders Fund, David Friedberg’s The Production Board and existing investors including Cherry Ventures and Atlantic Labs.