Sustainable, Impact, and ESG News and Investment Digest (20 Feb 2021)

A regular flash view round-up of current developments in sustainable, impact, and ESG news and investing for those who are time poor or want a quick overview on the way to work.

In this digest:

• Sustainable and ESG SPACS
• London Stock Exchange first exchange to commit to net zero
• ESG to become core Goldman strategy
• Australia's first solar panel recycling plant to be set up in Adelaide
• Brazil to issue first ESG sovereign bond

Sustainable and ESG SPACs.

The increase in demand for sustainable, impact and ESG investible options has led to a commensurate increase in demand for ESG special-purpose acquisition companies (SPACS), also known as blank cheque companies.

The trend is also driven by the relative dearth of easily accessible investing options in the ESG space. SPACS allow companies to be launched with funding before all suitable investments have been found. These new breed of SPACs typically invest in new energy, de-carbonisation, electric vehicles, recycling and plastics solutions.

Source: Pitchbook.com

London Stock Exchange first exchange to commit to net zero

The London Stock Exchange (LSE) is to become the first exchange to commit to net zero, joining the UN Climate Change Race to Zero programme.

Its commitments have been approved by the Science Based Targets Initiative (SBTi) and encompass Scope 1, 2 and 3 emissions targets to be met by 2030. The LSE's targets include a commitment to engage with its suppliers.

It will also launch its Transition Bond Segment, where it will promote fixed interest securities from issuers with corporate strategies consistent with the Paris Accord.

Source: ESG Today

ESG to become core Goldman strategy

Investment banking giant, Goldman Sachs, is set to issue increasing environmental, social, and governance bond offerings as part of its strategy to invest US$750 billion in sustainable, impact and ESG options by 2030.

With around US$25.5 billion pf ESG-linked debt issuance in this year it is a rapidly growing market. The market borrowed a record US$111.8 billion in this sector in 2021. Many global investment banks have issued ESG-aligned bond tranches as demand from investors ramps up.

Source: Yahoo / Bloomberg

Australia's first solar panel recycling plant to be set up in Adelaide

Lonsdale, Adelaide, is set to be the site of Australia's first solar panel recycling plant.

Reclaim PV Recycling has signed a long-term lease after securing approval for the development of a solar panel recycling facility on the site. The company aims to be able to implement operations at a rate of 70,000 panels per annum and is seeking to source end-of-life solar panels across Australia.

The company has spent significant time seeking government and industry support for the development whilst collecting end-of-life panels and storing them for recycling.

Source: Renew Economy

Brazil to issue ESG sovereign bond

Brazil is to launch an ESG sovereign bond in a bid to attract more international investment.

The initiative comes following international criticism of the administration's history on environmental policies, particularly in the Amazon.

However, the country faces a credibility problem and adequate data and assurances will need to be given to ensure they will not end up as greenwash bonds.

Source: Nasdaq / I Versiani