SPACs, Impact Investing Returns and Green Recovery
Here are 5 things you might have missed this week:
Special-Purpose Acquisition Companies (SPAC) are becoming increasingly popular to fund sustainable enterprises-
McKinsey analyzed the performance of recent SPACs—a mixed track record—and found that SPACs that are led or co-led by operators, rather than solely by investors, tend to outperform throughout the deal cycle.
As of August 2020, SPACs that were actively seeking business combinations held about $60 billion of capital (across more than 100 SPACs) and made up 81 out of 111 US IPOs.
"Done well, SPACs combine the best of private and public ownership: the superior rigor of PE-style governance and the lower capital costs of public firms."
Impact investing returns in emerging market and developing economies-
An examination of every equity investment made by the IFC, one of the largest and longest-operating impact investors across 130 emerging market and developing economies, shows its portfolio outperformed the S&P 500 by 15 percent.
Global banks and insurance companies move closer to climate targets for loans and investments-
Fifty-five firms including HSBC Holdings Plc, Societe Generale SA, BNP Paribas SA and others committed to the Science Based Targets initiative.
The SBTi is a consortium that developed a framework to help companies figure out how they should change their operations to align with the 2015 Paris climate agreement.
U.N. Biodiversity Summit-
This week’s U.N. Biodiversity Summit discussed a wide range of topics from the 30x30 pledge (to double the Earth’s protected land and water to 30% by 2030) to create a Paris-style agreement focused on biodiversity.
Financial innovations to drive climate action and a green recovery-
The Global Innovation Lab for Climate Finance (the Lab) launched eight innovative financial solutions to drive private resources to climate action.
"After a thorough process of analysis, development and stress-testing, these solutions are ready to provide investment opportunities for a post-COVID, green economic recovery."
The Lab is an initiative of over 60 public and private investors and institutions to accelerate investment solutions to support sustainable development goals in emerging markets.
One more thing: Our Planet: Too Big to Fail. This 42-minute film explores the risks of inaction, the impact of investing-as-usual, and the role the finance sector can play in powering a sustainable future.
Watch the video here- https://www.ourplanet.com/en/video/our-planet-too-big-to-fail/
Do share your comments or the content you think our community should not miss!