Category: Finance

JPMorgan launches growth equity investing platform, with sustainable investments as a key thematic area

Read the full story at ESG Weekly.

J.P. Morgan Asset Management announced today the launch of a new growth equity platform, forming part of the newly established J.P. Morgan Private Capital, along with the firm’s existing private debt business. According to JPMorgan, the new unit aims to tap into the continued growth of private markets and significant pre-IPO value creation opportunities across a range of asset classes and sectors, including consumer, technology and sustainable growth equity investing.

Carbon trading will drive emission cuts in commodity supply chains

Read the full story in the Financial Times.

The race to limit global warming by reducing emissions of greenhouse gases has created new dynamics in markets. Commodity markets may be among the most profoundly affected, but they also have a crucial role to play in the transition to a lower-carbon economy.

It is time for commodity traders to help make that happen — using market forces, risk management skills and our unique insight and expertise in managing global commodity supply chains — to reduce carbon emissions.

What does green mean? Investors grapple with definitions and data

Read the full story in the Financial Times.

Coming up with accurate data on companies’ environmental, social and governance records has always been difficult for investors. Demand for so-called ESG funds may be high, but understanding where the green capital should flow is not always obvious. The problem is most often a lack of meaningful, reliable data…

The EU has now set out to rectify matters. Through a mushrooming array of rules and directives, the bloc is seeking to pin down what can be called a sustainable investment in its member states, as well as providing clearer reporting standards — although experts warn that initial results may be patchy.

New group calls on SEC to strengthen climate protections for U.S. financial system

Read the full story from EDF.

Experts with the brand new Initiative on Climate Risk and Resilience Law (ICRRL) are calling on the Securities and Exchange Commission to strengthen protections from the dangers of climate change to our nation’s financial system and the millions of people who rely on it to sustain the American economy.

ICRRL is a joint initiative of Columbia Law School’s Sabin Center for Climate Change Law, Environmental Defense Fund, the Institute for Policy Integrity at New York University School of Law, and Vanderbilt Law School. The partnership was formed to drive legal solutions that address societal and economic risks from climate change and to improve climate resilience, including in our financial sectors. ICRRL’s work formally got underway today with the launch of its new website – and with an SEC filing detailing its recommendations for climate change disclosure for businesses.

Private equity’s falling out of love with plastic packaging

Read the full story from Reuters.

A decade ago, private equity couldn’t get enough of plastic packaging. They snapped up companies making bags, films and trays to contain everything from food and fashion to drink to drugs, drawn by reliable cash flows and consolidation prospects.

But now the sector’s not quite so in vogue. Many buyout firms are steering clear, and some of those holding assets are struggling to offload them at what they consider attractive prices, according to people involved in such deals.

This reversal illustrates how much the investment world has recalibrated itself in a matter of years, with environmental factors becoming dealmakers or breakers.

Biden orders Yellen to outline climate risks to financial stability

Read the full story at Banking Dive.

The Biden administration issued an executive order Thursday giving Treasury Secretary Janet Yellen six months to recommend steps to reduce the risks to financial stability posed by climate change. Her assessment will incorporate financial regulators’ plans to boost climate-risk disclosures.

The order also asks National Economic Council Director Brian Deese and National Climate Adviser Gina McCarthy, in coordination with Yellen and the Office of Management and Budget, to identify and disclose, within 120 days, the extent of exposure government programs and assets have to climate risks.

“Our modern financial system was built on the assumption that the climate was stable, and that assumption has largely dominated existing financial models, and it’s underpinned the way that we invest capital, the way that we have built society, and the way that we have forecasted for the long term,” Deese said Thursday, according to Bloomberg. “Today it’s clear that we no longer live in such a world.”

The Role of Natural Climate Solutions in Corporate Climate Commitments: A Brief for Investors

Download the document.

The Role of Natural Climate Solutions in Corporate Climate Commitments: A Brief for Investors is a first-of-its-kind engagement tool for investors to spur meaningful dialogue with companies on the role and use of natural climate solutions in delivering on those commitments. It provides clear guidance on how to facilitate engagements with portfolio companies and lays out expectations for climate disclosures—calling for transparency in critical steps along the way to net zero.

JPMorgan achieves carbon neutrality in operations, sets carbon reduction financing targets for high emitting sectors

Read the full story at ESG Today.

JPMorgan Chase announced that it has achieved carbon neutrality across its operations in 2020 and unveiled a new set of targets towards its goal to align its financing activities with the climate goals of the Paris Agreement.

Morningstar expands sustainable investing toolkit with ESG assessments of asset managers & companies

Read the full story at ESG Today.

Independent investment research firm Morningstar announced today the launch of the Morningstar ESG Commitment Level, and the Morningstar ESG Risk Rating Assessment, designed to provide ESG assessments of asset managers and companies, respectively.

The launch of the new products follows the acquisition last year of ESG ratings and research provider Sustainalytics, and the subsequent announcement that it has started the process of formally integrating ESG factors into its analysis of stocks, funds, and asset managers, including the integration of Sustainalytics research into Morningstar’s equity research methodology.

Morningstar ESG Commitment Level provides assessments for nearly 900 funds and more than 70 asset managers of the extent to they are incorporating ESG factors into their investment processes. The tool follows a four-point scale of Low, Basic, Advanced, and Leader, distilling the ESG resources, policies, and expertise at an asset management firm or within managed investment strategy into a simple assessment. The assessments are currently available for Morningstar Direct, Morningstar Office, and Premium members of Morningstar.com, and will be available later this month in Morningstar Advisor Workstation and Morningstar Analyst Research Center.

Kellogg enters growing sustainability bond market with €300 million offering

Read the full story at ESG Today.

Convenience and snack food company Kellogg announced today the launch of its inaugural sustainability bond issue, with the pricing of a €300 million 8-year bond, with a 0.5% interest coupon. Proceeds from the issue will be used to fund sustainability initiatives at the company ranging from food security to climate action.

Kellogg’s inaugural sustainability bond issue comes as the sustainable finance market is experiencing substantial growth. According to a report issued by Moody’s Investors Service earlier this week, global sustainable bond issuance reached a record $231 billion in Q1 2021, more than triple the same quarter last year. Amazon also launched its inaugural sustainability bond issue this week, with a $1 billion offering.

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