🧭 Executives boost sustainability investments in 2024: Deloitte report insights & the latest in ESG & fintech innovation

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Last week, we dove into global trends in ESG and climate finance, including the launch of IFC's ClimaLab to tackle climate risks in Europe’s financial sector, a Morgan Stanley report on data center emissions, and the landmark growth in China’s green financing, which reached $4.1 trillion in 2023. We also highlighted TotalEnergies’ $100M investment in U.S. forest carbon credits and India’s bioeconomy tripling projections under its new BioE3 policy.

At the BIG Risk Navigator, our mission is to provide forward-thinking leaders with critical insights on ESG investments, climate finance, and FinTech innovation. Whether you're a C-level executive or board member, our newsletter equips you with the knowledge to drive sustainability and make informed decisions for long-term impact.

Ready to dive deeper? Click below to explore the latest insights on sustainability investments, eco-friendly federal purchasing, and how leading companies are transforming their business models to address climate change.

But first – community updates!

Exciting news! The Emerald Summit wrapped up last week with inspiring keynotes on accelerating venture capital for climate startups led by women. But don’t worry if you missed it—we have some incredible takeaways to share next week. Stay tuned on the Wallet Max LinkedIn page for highlights on how climate tech and sustainable finance are shaping the future.

Now let’s get into the news.

• Executives say sustainability investments are up, new Deloitte research reveals: Deloitte’s 2024 CxO Sustainability Report reveals 85% of organizations increased sustainability investments in 2024.

• AllianzGI secures EUR 560 million for impact private credit targeting European SMEs with environmental and social solutions: Direct lending to SMEs addressing key environmental and social challenges like climate change and healthcare.

• EPA proposes 14 new ecolabels to boost sustainable federal purchasing: The EPA proposes adding 14 new ecolabels and standards to guide federal procurement in sustainability.

• Finnish company Upright launches the first-ever open database on science-based impact of funds: The groundbreaking open database is covering the science-based impact of over 35,000 mutual funds and ETFs worldwide.

• Private equity fundraising in Nordics at record setting €30B: Private equity in the Nordic region has been catching the eyes of investors due to attractive returns.

🎯 Executives say sustainability investments are up, new Deloitte research reveals

✅ Key Insights

• 85% of organizations increased sustainability investments in 2024, up from 75% in 2023.

• 50% of CxOs have started using tech solutions for climate goals; 42% plan to do so in two years.

• 45% of executives are transforming their business models to integrate sustainability.

Deloitte’s 2024 CxO Sustainability Report shows that climate change remains a top three issue for global C-suite level business leaders (CxOs). This shift signals climate action’s lasting presence on corporate agendas.

Read more.

🎯 AllianzGI secures EUR 560 million for impact private credit targeting European SMEs with environmental and social solutions

✅ Key Insights

• EUR 560mn in commitments from top European institutional investors, including Allianz and APG, marking over half of IPC’s target.

• Focus on impact: Direct lending to SMEs addressing key environmental and social challenges like climate change and healthcare.

• Sustainable finance leadership: Classified under Article 9 of SFDR, ensuring strong impact measurement and transparency.

Allianz Global Investors (AllianzGI) has secured EUR 560mn in total commitments at the first closing of its Impact Private Credit (IPC) strategy. Key investors include Allianz, APG Asset Management, the European Investment Fund (EIF), and La France Mutualiste, which marks the strategy’s successful start, reaching over half of its target size. The IPC strategy focuses on direct lending to European small and mid-market companies addressing major environmental and social issues.

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🎯 EPA proposes 14 New Ecolabels to boost sustainable Federal Purchasing

✅ Key Insights

• The EPA proposes adding 14 new ecolabels and standards to guide federal procurement in sustainability.

• Updates focus on expanding healthcare, laboratories, clothing, and food service ware categories.

• Public comments on the proposal are open for 30 days via Regulations.gov.

The U.S. Environmental Protection Agency (EPA) has released proposed updates to its Recommendations of Specifications, Standards, and Ecolabels for Federal Purchasing. These updates are aimed at helping federal government buyers identify more sustainable and climate-friendly products. The EPA’s Recommendations serve as a tool for buyers to utilize private sector ecolabels and standards that support environmentally preferable purchasing decisions. People’s Bank of China reported a substantial increase in green loans, totaling $4.1 trillion at the end of 2023—a 36.5% rise compared to the previous year, marking it as the highest growth among all loan types. These funds are primarily directed towards green projects in sectors like energy, construction, and mining.

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🎯 Finnish company Upright launches the first-ever open database on science-based impact of funds

✅ Key Insights

• Transparency Unlocked: Upright launches a database covering over 35,000 funds, offering full transparency on their societal and environmental impacts.

• Real Impact Over Labels: The database reveals surprising insights, showing that some highly-rated funds perform worse than expected.

• Empowering Investors: Both retail and professional investors now have access to detailed, comparable data to make informed decisions.

Upright has just launched a groundbreaking open database, the first of its kind, covering the science-based impact of over 35,000 mutual funds and ETFs worldwide. This initiative offers an unprecedented level of transparency into the environmental, health, social, and knowledge impacts of funds, utilizing Upright’s proprietary impact quantification model.

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🎯 Private equity fundraising in Nordics at record setting €30B

✅ Key Insights

• The more than €30 billion (around $33.3 billion) raised by funds in the Nordic region, as of Sep. 11.

• It beats the record €27.2 billion that was raised in 2021.

• Fund counts are also on the rise with 17 vehicles closed so far this year.

Private equity fundraising in the Nordics has bounced back from the 2023 trough to a 10-year high. However, LPs continue to focus on the few managers with the most experience as exit activity remains subdued.

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Investment metrics for climate change: Thoughts from an engineer and entrepreneur

Thomas Vogel, co-founder and CEO of Yonder, emphasizes on changing the macro-habits of entire societies and proposes new investment metrics adapted to the realities of climate change.

✅ Highlights 

• We need to accept that climate change will cost us dearly

• Our top focus is CO2 avoidance and removal

• A good life needs water

Capital is becoming scarcer. Not just for fancy startups, but for business in general. Part of the reason is that investment in business continuity is on the rise. Part is because governments dole out huge stimulus packages in the wake of COVID-19. Part is because markets tend to become smaller due to the rising geopolitical tensions between the West, Russia, and China.

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How Sila Nanotechnologies is scaling domestic innovation

✅ Highlights 

• Support from private and federal partners

• Achieving pilot-scale production

• Generating commercial traction

• Selecting a large-scale manufacturing base

Sila’s growth story demonstrates the opportunities and challenges commonly faced by clean energy companies as they scale U.S. manufacturing capabilities to commercialize first-of-their-kind technologies. Founded in 2011 and headquartered in Alameda, California, Sila Nanotechnologies is a next-generation battery materials company that employs almost 400 people and holds over 200 patents. 

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