BOARDROOM
Morgan Stanley raising $1bn for energy transition
Morgan Stanley Investment Management’s infrastructure team is planning to raise at least $1bn for energy transition related-projects, Bloomberg reports. MSIM’s Energy Transition strategy is guided by its subsidiary Calvert, which advocates for investing in clean energy, while also “selectively investing in oil and gas producers” to “be prepared for potential resilience of fossil fuel demand over time”. The move is in line with other Wall Street investors like TPG, Goldman Sachs and KKR, which are increasingly backing companies that fight climate change.
EU invests €20mn into HeavyFinance for regenerative agriculture
Lithuanian fintech HeavyFinance has received a €20mn investment from the European Investment Fund (EIF) towards its €50mn private credit fund. The fund will support small and medium-sized businesses in Bulgaria, Latvia, Lithuania, Poland and Portugal to shift towards more regenerative farming. Practices include techniques like ‘no-till farming,’ which minimizes disruption to soil and the use of synthetic fertilisers to improve soil health and sequester carbon. Founder Laimonas Noreika told Impact Investor that small and medium-sized farms struggle to get financing from traditional banks.
British company directors may be liable for business impacts on the climate
A legal opinion published last week argues that board directors could be held personally liable for failing to account for risks related to nature and climate. The opinion, published by Pollination and the Commonwealth Climate and Law Initiative, says companies that depend on nature may ultimately suffer financially if ecosystems are harmed by business activities. The lawyers argue that company directors should identify nature- and climate-related risks related to their company and take steps to mitigate these, or else face claims that they are in breach of duty. Cases have been few to date, and according to The Guardian, though none have yet succeeded, they are gaining support.
Westbound to invest $100mn in tech projects focussed on people of colour
Westbound Equity Partners closed a second fundraise of $100mn, which will be invested in companies founded by, designed for, or built with underrepresented people of colour, it has announced. Westbound has previously backed Black-led companies like Rheaply, a circular economy platform for businesses to reduce waste, and Esusu, a credit-building tool for low-income renters. The investor will also donate half of the fund’s carried interest to its own Westbound Foundation, which supports non-profits that create opportunity for underrepresented people of colour. The name Westbound alludes to the historical movement of people in the United States westwards, in search of a better life.
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