Private Equity Prioritizes Sustainable Investing and Nature Moves Up the Corporate Agenda
Thanks for subscribing, and welcome to Good.News! In this weekly sustainability & ESG (Environmental, Social and Corporate Governance) newsletter, we aim to?give you a boost of positivity.
?Sustainability isn’t all rainbows ?? and unicorns ??, but at Good.Lab , instead of piling on with the negativity, we’re here to celebrate the sustainability highs, ESG triumphs, and climate champions!
?Ready for your weekly dose of good news? Here are five compelling, good news stories to send you off into your weekend with some wind in your sails.
1. Private Equity Investors Prioritizing Sustainable Investments
In the second annual BCG sustainability in private equity report, investors say they are prioritizing sustainable investments. 85% expect to increase their prioritization of sustainability-related topics over the next few years, and almost 70% said that companies considered sustainable should be valued higher. This is an important data point for companies looking for investments. Be more sustainable, and you will likely get more funding and an improved valuation.
2. Biodiversity Disclosures on the Rise
This week’s COP16 (the UN’s largest biodiversity event) has received unprecedented interest from the private sector, with companies increasingly setting ‘nature-positive’ targets. The TaskForce on Nature-related Financial Disclosures (TNFD) now has almost 500 voluntary reporters using the framework, and the CDP has seen a 43% increase in biodiversity disclosures since the last biodiversity COP in 2022. Companies of all sizes should consider biodiversity as the next focus after climate change, and it could be the next sustainability category to have reporting regulations.
3. SEC Announces Another ESG Fine
This week, the SEC released another fine for ESG misstatements. This time, asset manager WisdomTree got a $4 million fine for misstatements on some of their ESG funds, which failed to meet their own ESG-labeling criteria and contained oil and gas investments. This shows that both companies and financial institutions are being punished for greenwashing and that any company making green claims will have to substantiate them with clear metrics and evidence.
4. EU Uses Emissions Trading Scheme Funds into Climate Tech
The EU used €4.8 billion in funds it received from emissions-intensive sectors through its emissions trading system to fund 85 climate technology projects. Companies that continue to be high emitters will continue to be punished by regulations, while companies that innovate toward a low-carbon future will reap the rewards.
5. Hong Kong Releases Climate Regulations for Banks
The Hong Kong securities regulator, The Hong Kong Monetary Authority, released a new sustainable finance agenda requiring banks to reduce their financed emissions to net zero by 2050 and to disclose their climate risks and opportunities. Companies of all sizes should take notice of rules like this as the loans and credit they have with banks make up the bank’s financed emissions, so to reduce them, banks may ask companies they loan to or invest in to reduce emissions.
Stay tuned for next week's edition of Good.News, where we will bring even more uplifting tales of sustainability successes. Feel free to spread the positivity by sharing this newsletter with someone who could use a burst of good vibes in their day!
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