Index provider S&P Dow Jones Indices (S&P DJI) announced today the launch of the S&P 500 SDG Index and the S&P Global LargeMidCap SDG Index, aimed at offering investors broad-based equity performance measurements and exposure to companies more aligned with the UN Sustainable Development Goals (SDGs).

The UN SDGs refer to the 17 categories of goals adopted in 2015 as part of the 2030 Agenda for Sustainable Development, with the aim to protect the planet and improve the quality of life globally.  SDG targets include ending poverty and hunger, improving education, and protecting the environment.

The new S&P 500 SDG and the S&P Global LargeMidCap SDG indices aim to measure the performance of eligible equity securities from S&P DJI’s flagship S&P 500 and S&P Global Large MidCap indices, respectively, with securities selected and weighted to enhance alignment to the SDGs, as well as to reduce carbon footprint at the index level.

From a performance benchmarking perspective, the indices leverage data to measure and reflect specific external impact that companies’ products and activities are making on society and the environment, regardless of the financial materiality implications. S&P DJI said that it licensed Corporate SDG alignment data from ESG impact data and portfolio solutions provider Impact Cubed, which uses a granular revenue and operations mapping approach, focused on a company’s products, and on how those products are made, as well as where the goods and services are sold and engagement with communities and stakeholders to determine company SDG alignment and net impact.

Jas Duhra, Global Head of Sustainability Indices at S&P DJI, said:

“With this approach, S&P DJI is offering broad-based sustainability performance measurement tools, one that is based on the S&P 500, which is the best single gauge of large-cap U.S. equities, and the other based on the S&P Global Large MidCap Index, which represents the top 85% market capitalization of each developed and emerging country.”

Global alternative investment manager Apollo announced today the launch of Global alternative investment manager Apollo announced today the launch, a new fund aimed at offering European wealth investors with access to clean energy and sustainable industry-focused private equity investment opportunities.

European Long-term Investment Fund, or ELTIFs, are investment vehicles designed to enable investors to invest in companies and projects that require long-term capital, such as infrastructure projects.

Olivia Wassenaar, Apollo’s Head of Sustainability and Infrastructure, said:

“The launch of ACT Equity ELTIF reinforces our commitment to invest in the clean energy transition and ability to deploy capital at scale across sectors and strategies. We’re thrilled to expand access to our strategy, which will offer eligible investors in Europe the ability to participate in what we view as a generation-defining opportunity to address climate change.”

The launch of ACT Capital follows the establishment last year by Apollo of a sustainable investing platform focused on financing and investing in the energy transition and decarbonization of industry, with the firm setting a goal to deploy $50 billion in clean energy and climate capital over five years, and seeing the opportunity to deploy over $100 billion by 2030. Apollo noted that its funds have invested $23 billion into energy transition and sustainability-related investments over the past five years.

Veronique Fournier, Managing Director and Head of EMEA Global Wealth at Apollo, said:

“This marks another important milestone as we scale the solutions offered through our Global Wealth business to help meet the needs of European investors. This new offering will broaden access to private markets while offering exposure to thematic climate and transition private equity investments that we believe our clients seek.”

Leading European asset manager Amundi announced the launch of Amundi Ambition Agri-Agro Direct Lending Europe (AAAA), a new private debt impact investing strategy aimed at financing European companies in the agricultural and agri-food sectors committed to transitioning to a more sustainable, low-carbon model that preserves natural resources, as well as ensuring food sovereignty.

The new investment strategy is kicking off with a €130 million commitment from Amundi’s parent company, Crédit Agricole Group. The launch forms part of Crédit Agricole Group’s Societal Project, which is focused on the key priorities of climate, social cohesion and agricultural and agri-food transitions. The strategy has a total fundraising target of €750 million.

Jean-Pierre Touzet, Head of the Agri-Agro – Guarantee – Capital Development division of Crédit Agricole, said:

“This new fund offers companies in the agricultural and agri-food sector an alternative and complementary financing solution to traditional debt. It completes the Crédit Agricole Group’s “Ambition Agri-Agro” range, which includes a private equity fund managed by IDIA Capital Investissement and an innovation capital fund managed by our partner Supernova Invest, both of which are already operational. Our ambition is to mobilise a total of €1 billion to finance transitions in the agricultural and agri-food sector.”

The new fund will implement a direct lending impact strategy managed by Amundi Real and Alternative Assets’ Private Debt team, aimed at supporting the development of SMEs, mid-sized businesses and cooperatives in the agricultural and agri-food sector in Europe, through various senior, unitranche and subordinated debt instruments.

Thierry Vallière, Head of Private Debt at Amundi, said:

“We want to offer investors an innovative investment solution that will help companies in the agri-food and agro-industrial sectors to make strategic changes towards a competitive and sustainable system. We are confident in our ability to deploy funding quickly and secure investments in the sector, thanks to the depth of our sourcing and the quality of our selection process.”

Bloomberg today announced the launch of new green-tilted versions of some of its flagship fixed income indices, including its Global Aggregate, Treasury and Corporate Indices, aimed at enabling investors to increase exposure to sustainable investments with products that maintain similar characteristics of the parent benchmarks.

Green bond issuance volumes have surged over the past several years as companies and governments have increasingly used them to finance their environmental sustainability and transition initiatives. Despite slower volumes last year amidst a broader issuance market pullback, issuances have rebounded, reaching record volumes in the first half of this year, and representing around 9% of global bond market issuance, according to Moody’s Investors Service.

The new products include “20% Green Bond” and “3x Green Bond Tilted” versions of the Bloomberg Global Aggregate, Bloomberg Global Corporate, and Bloomberg Global Treasury Indices. The company noted that the year-to-date return for the Bloomberg Global Aggregate 20% Green Bond Index is 0.75% above that of its parent benchmark, which it said highlighted the opportunity for additional returns for investors with an appetite for sustainability-focused investment.

Bloomberg said that the indices can be further customized to meet specific individual investor needs with additional fields such as business involvement exclusions, EU Taxonomy inputs, regulatory screens, and custom sector weightings, and noted that a custom Bloomberg Euro Treasury Green Bond Tilted Index has been licensed to Amundi for the launch of a new ETF.

Jonathan Gardiner, product manager for Sustainable Indices at Bloomberg Index Services, said:

“Sales of green bonds have reached record highs this year, up more than 10% compared to volumes for the same period last year, while the broader sustainable debt market has soared past new heights to $7 trillion historically, and Bloomberg Indices has closely tracked this growing trend to provide investors with myriad ways to introduce and benchmark this market to their portfolios.”

Copenhagen Infrastructure Partners (CIP) announced today the launch of Growth Markets Fund II (GMF II), focused on the development of clean energy projects in high growth middle-income markets across Asia, Latin America and EMEA.

CIP said that the fund has a target size of $3 billion, and is anticipated to enable more than 10 GW of new renewable energy capacity.

Christina Grumstrup Sørensen, Senior Partner and founder of CIP, said:

“To reach net-zero, we need to bring affordable, reliable, and clean energy to all parts of the world. With a continuous increase in carbon emissions, successful deployment of large-scale renewable energy is particularly important in high-growth, middle-income countries. This fund will be deploying significant private capital and therefore ensure renewable projects in countries, where it will contribute to growth and job creation and deliver substantial impact in terms of reducing carbon emissions.”

According to CIP, the new launch comes as emissions from middle-income markets are expected to grow dramatically over the coming decades, with renewable energy capacity required to triple by 2030 in order to stay on the path to net zero, driving a need for nearly $2 trillion of investments in clean energy in middle-income and emerging markets alone this decade.

The fund is set to be the largest in the world focused on greenfield renewable energy investments in high growth, middle-income markets, CIP added, with the potential to reduce greenhouse gas emissions by more than 10 millon tonnes annually, and to power more than 10 million homes with clean energy.

The new fund will focus on investments in large-scale and complex greenfield renewable energy infrastructure projects, in areas including offshore and onshore wind, solar PV, energy storage and Power-to-X, and across 15 selected high-growth middle-income markets identified as having strong fundamentals for renewable energy infrastructure investments, with a combination of high economic and demographic growth, as well as an expanding middle class. Selected markets include India, Vietnam, Philippines, Mexico, and South Africa.

Niels Holst, Partner at CIP and Co-Head of GMF, said:

“These middle-income and emerging markets represent not only a mandatory task for the industry – and we believe that they are also very attractive markets for investors seeking exposure to the some of the highest expected growth rates for renewables. They are estimated to account for 25% of global renewable energy capacity by 2050, as economic and demographic growth drives rapidly increasing electricity demand.”

CIP added that the new fund already has ownership in a diversified portfolio of development stage projects representing more than $5 billion in potential commitments, well ahead of the fund’s target size.

Ole Kjems Sørensen, Partner at CIP and Co-Head of GMF, said:

“The fund is off to a good start with a large and diversified portfolio of projects reflecting potential equity commitments of more than USD 5 billion – far exceeding the target fund size. We expect the fund to be a global driver in the green and just transition.”

M&G’s impact investing unit responsAbility Investments, together with Germany’s development bank KfW and the Dutch development bank FMO, announced the launch of new climate investment strategy, aimed at actively contributing to CO2 reduction in Asia through targeted investments in low-emission technologies, and seeking to mobilize $500 million in capital.

According to responsAbility, the new strategy is being launched amidst an urgent need for investment in climate-friendly technologies and infrastructure in Asia, which is the largest emitter of greenhouse gases, but also has a projected strong increase in energy demand over the next several years.

The new climate investment strategy focuses on sectors with high CO2 savings potential in Asia, including renewable energy, battery energy storage, electric mobility, energy efficiency and circular economy. A key element of the strategy is the “Climate Impact Assessment and Monitoring Framework,” which ensures high transparency and targets direct CO2 savings of an estimated 10 million tons over the entire lifetime of the investments.

Ewout van der Molen, Head of Climate Finance at responsAbility, said:

“Our investment strategy appeals to institutional investors who are looking for both environmental impact and financial value from their investment. As a key step towards a low-carbon economy in Asia, responsAbility provides a significant opportunity for investors to make a tangible and measurable difference in the fight against climate change. The successful launch will enhance access to capital for Asian businesses that are keen to reduce their carbon footprint.”

According to responsibility, the climate investment strategy will use a blended finance structure that combines public funding with private capital. Blended finance brings together public capital and private funding through a common investment structure, enabling investors to invest in certain types of investments that have high perceived risk profiles, such as new climate mitigation-related technologies. The instruments are designed to attract large-scale institutional capital, allowing public financiers to use a small amount of their own resources as a first loss to mobilize large amount of private capital to reach large number of underlying climate projects needed.

Stephanie Lindemann-Kohrs, Director of Global Equity and Funds at KfW, said:

“KfW Development Bank, on behalf of the German Federal Ministry for Economic Cooperation and Development, strives to increasingly channel private sector capital into the SDGs. Through its blended finance structure and KfW’s investment into the first loss tranche, the climate investment strategy is ideally positioned to mobilize private funding at scale for investments that foster the energy transition and contribute to greenhouse gas abatement.”

BNP Paribas Asset Management (BNPP AM) today announced the appointment of Rodolphe Brumm to head its new Low Carbon Infrastructure Equity strategy within its Private Assets investment division. 

Brumm joins BNPP AM after serving as a Partner at infrastructure-focused private equity investor Antin Infrastructure Partners, where he led several energy transition-focused transactions. His previous roles include Head of Origination & Execution for Europe at UBS Infrastructure Equity in London, Advisor at NextWorld Evergreen in San Francisco and Managing Director in Ardian’s equity infrastructure team.

The new strategy, due to be launched at the beginning of 2024, will invest in low-carbon infrastructure projects in Europe through acquiring minority stakes in companies in energy transition-related areas, such as the development of renewable energy projects, transport decarbonization, circular economy and carbon capture.

Brumm will report to Karen Azoulay, Head of Real Assets within BNPP AM’s Private Assets division.  He is joined by Frédéric Guiraudios, who moves to BNPP AM after around 20 years in M&A as a Managing Director at BNP Paribas Corporate & Institutional Banking.

Azoulay said:

“The appointments of Rodolphe and Frédéric further strengthen the infrastructure franchise within our Private Assets investment division at a time when client demand for this asset class continues to grow and the need for investments, particularly low-carbon investments, is considerable. The new Low Carbon Infrastructure Equity strategy will be based on the central positioning of the entire BNP Paribas Group within the financing of the energy and low-carbon transition.”

Investment giant BlackRock announced today that it has raised nearly $1 billion in client commitments at the initial close of its energy transition and energy security-focused Evergreen Infrastructure fund,

Launched in June 2022, fund is a core, open-ended infrastructure equity fund that focuses on investing in infrastructure businesses in Europe and North America aligned with the themes of energy transition and energy security, in addition to a focus on thematic sectors including transportation, digital infrastructure and the circular economy.

According to BlackRock, the fund aims to partner with infrastructure businesses looking for financing to support their evolution and growth through the decades-long energy transition, including working with portfolio companies on the implementation of decarbonization activities, and tracking assessing and reporting on progress over time.

The fund will also track Temperature Alignment Key Performance Indicators, helping the portfolio management team align the fund to a 1.5°C temperature rise scenario, BlackRock said.

Anne Valentine Andrews, Global Head of Infrastructure and Real Estate at BlackRock, said:

“In today’s evolving energy landscape, companies are looking for capital that will partner with them as they adapt their businesses and navigate an accelerating long-term shift towards a lower-carbon economy. Evergreen’s forward-looking lens, partnership approach, and focus on core businesses and assets is designed to help investors capitalise on these dynamics, while supporting the sustainable growth of essential infrastructure.”

The cornerstone commitments to the fund at the initial close came from several European institutional investors as part of the Fund’s European Founding Partners program. They include Intesa Sanpaolo S.p.A., Italy’s largest bank, and Inarcassa, the first pillar pension scheme for Italian engineers and architects, among others. Western Europe, including Italy, is a key region for the Fund, with 50-60% of the total portfolio expected to be allocated to the region.

Flavio Gianetti, Executive Director of M&A and Group Shareholdings at Intesa Sanpaolo said:

“We are very pleased to be part of a project that underscores the ongoing importance of developing cutting-edge infrastructure with a strong focus on energy transition and sustainability. BlackRock’s new fund will span Europe and North America, regions teeming with opportunities for the construction or revitalization of sustainable telecommunications, digital, energy, gas storage, and renewable energy infrastructure.”

The Evergreen Infrastructure fund has already begun to commit capital and has signed definitive documentation to acquire Lighthouse, a U.S. C&I solar and battery storage platform with an operating portfolio spanning six U.S. states that capitalizes on the growing demand for distributed renewable energy, which is supported by the recently enacted U.S. Inflation Reduction Act.

International asset manager Robeco announced today the launch of its new Fashion Engagement Equities Strategy, aimed at enabling investors to meet the dual objectives of earning attractive investment returns while promoting sustainability-focused change in the fashion industry.

According to Robeco, the launch of the new strategy comes as the $2.5 trillion fashion industry is poised for significant growth, driven by factors including population growth, increasing disposable incomes and consumption trends, while the sector also faces a broad range of social and environmental sustainability challenges, including workers’ rights, pay levels below living wages, very low clothing recycling rates, and high greenhouse gas emissions.

The new fund aims to enable investors to capitalize on industry’s long-term growth opportunities, while also helping to drive the sector’s sustainability transition through engagement with all companies in the portfolio, according to the firm.

Dora Buckulčíková, Portfolio Manager at Robeco, said:

 “Our conviction is that profit and positive change can go hand in hand. There is increasing demand for the fashion industry to transform. Companies with leading sustainability characteristics are likely to do better than laggards in the long run. It is our responsibility as long-term shareholders to encourage transparency and sustainable business practices at the individual company level. We believe this strategy positions investors to benefit from and contribute to the fashion industry’s sustainable transition.”

The new fund, classified as Article 8 under the SFDR regulation, will invest and engage with 30 to 40 publicly listed companies across the entire fashion value chain, ranging from businesses involved in the sourcing of raw materials, to those in production, consumption and end-of-life management, as well as vertically integrated brands in the affordable and luxury segments, in addition to sportswear, jewelry and cosmetics.

Megatrends to be considered in the strategy’s stock selection process will target companies exposed to casualization, premiumization, circularity and automation, and long-term company engagements will focus on sustainability challenges across key areas including decent work, natural resource stewardship, circular models, stakeholder management, and governance & policies.

Alyssa Cornuz, Deputy Portfolio Manager at Robeco, said:

“Fashion brands adopting sustainable practices can generate better long-term returns through unique positioning and emotional connection with consumers.”

Legal & General Investment Management (LGIM), one of Europe’s largest asset managers, announced the launch of the L&G Future World ESG Emerging Markets Government Bond Local Currency Index Fund, the first in a series of new funds aimed at providing investors with exposure to an enhanced sovereign ESG framework, and the integration of ESG across sovereign debt.

Additional funds to be launched in the series will include a developed market government bond index fund, and a USD denominated emerging markets government bond fund.

According to LGIM, in addition to a range of ESG factors, the funds will also incorporate “Geopolitical stability/risk” as a new proprietary fourth ESG pillar, focused on identifying risks beyond headline sustainability metrics, which the company said provides a more comprehensive risk assessment of investing in government debt.

Citing World Bank research revealing an ingrained income bias in sovereign ESG scores, which results in money flowing primarily to more developed countries and away from developing nations that need the investment, LGIM said that the new framework seeks to eliminate this bias by facilitating a higher allocation of capital to nations that require debt issuance to advance their economies, and rewarding countries that are on a path to improving their ESG credentials while penalizing those that are trending negatively.

LGIM added that it has implemented ‘wealth bands’ into their Index Fixed Income Sovereign Risk ESG Future World fund range, applying tiered thresholds for exclusions based on different levels of country income. The company said this will provide investors with exposure to sovereign debt with deeper ESG integration, factoring in forward-looking sovereign risk factors and adjusting for wealth bias.

LGIM also said that the new fund range will incorporate a “sovereign ESG score momentum factor” that rewards countries trending positively on ESG factors, and penalizes countries trending down, amplifying risk signals key to future growth within sovereign ESG. 

Lee Collins, LGIM’s Head of the Index Fixed Income Desk said:

”Whilst ESG integration in equities and corporate bonds exposures is a well-trodden path, it’s fair to say that developments in the Sovereign ESG sector have lagged behind. We believe that with several unique features, these new products will offer investors a deeper ESG integration in the asset class.”

The company said that the new fund will use sovereign risk ESG data powered by Verisk Maplecroft, and leverage JP Morgan’s fixed income benchmark methodologies.

James Lockhart Smith, VP of Markets & ESG at Verisk Maplecroft, said:

“We are delighted to be working with LGIM on their new Sovereign ESG Index funds. The scale of fast-evolving environmental risks, as well as persistent social and governance deficits, has increased the need for sovereign debt investment products that use ESG criteria in an impactful way.”

Shaku Pithavadian, Managing Director, Deputy Head of Global Index Research at JP Morgan, added:

“We have leveraged our best-in-class fixed income benchmark methodologies and new means of index construction to enhance customized product design for our clients. We are pleased to work with LGIM to integrate their bespoke Sovereign ESG framework in a scalable index solution.”

The funds have been categorized as Article 8 under the Sustainable Finance Disclosure Regulation.