Spriing: Issue No. 2

Your guide for all things impact and inclusive investing

Jan 09, 2023

Insights and resources by and for the next generation of active and aspiring impact and inclusive investors.

🎉2023: A Year for ESG🎉

We expect that 2023 will be a strong year for ESG, sustainable, and inclusive investing, with significant momentum arising from increased regulatory guidelines and requirements. We’ve gathered some of our high level thoughts below.

Institutional investors will increase allocations to ESG products.
There will be continued consolidation among ESG reporting bodies and frameworks due to global calls for standardization.
ESG reporting software tools will rise, as businesses realize these systems are “must haves” as opposed to “nice to haves.” Increased regulations will require enhanced data collection and operational systems from companies and investors alike.
Politicization may slow down ESG becoming a norm particularly in the US, though will be a time-bound distraction.
The need for climate data and analytics will grow, particularly as climate risk, disclosure regulations, and net-zero commitments all increase.
Stakeholders will demand to see progress and implementation, not simply announcements for new initiatives. With significant capital allocated to our global energy transition and ESG, we expect to see more public progress reports.

A few of our favorite predictions articles for 2023 across a variety of impact related topics and sectors:

Pitchbook’s 2023 Analyst Note that includes sector-specific predictions for 2023 covering agtech, climate tech, and foodtech
Impact Alpha’s trends to watch
Sustainability and ESG in 2023 by Debra McCoy, Partner, Bain & Company
6 ESG and climate trends to watch for in 2023, according to Meggin Thwing Eastman at MSCI
Sustainability and Climate Tech predictions for 2023 from climate tech VCs, published by Maren Thomas Bannon at Forbes
Six climate tech trends to watch for in 2023 by Tim De Chant, senior climate writer at TechCrunch
Fred Wilson’s 2023 predictions that include talent migration from software tech to climate tech
6 blue economy investors on what they’re looking at in 2023
Obvious Ventures’ 2023 food & wellness predictions

📰 Industry News and Resources

HSBC, Europe's largest bank, updates its climate policy and will no longer finance new oil and gas fields. The hope amongst ESG and climate investors is that other banks will follow. HSBC invested ~$8.7B in new oil and gas in 2021.
The Singapore IIX raised $50M for the fifth bond in its Women’s Livelihood Bond series, the first social bond with a gender lens to be listed. The bond’s proceeds will support ~300k women across Asia and Africa to transition to more sustainable, climate resilient livelihoods. The WLB5 is also the first to comply with the Orange Bonds Principles developed earlier this year.
The US Forum for Sustainable and Responsible Investment Foundation (US SIF Foundation) released the 14th edition of its report covering US Sustainable investing trends. For the first time, climate change was reported as the most important ESG issue for asset managers, followed by avoidance of geopolitical risk. The report estimates $8.4T sustainable investment AUM at the start of 2022.
After significant negotiations, 200+ nations at the UN Biodiversity Conference (COP15) signed the Kunming-Montreal Global Biodiversity Framework (GBF). The GBF’s 4 goals and 23 action-oriented targets include the vision that by 2030, at least 30% of terrestrial, inland water, and coastal and marine areas are effectively conserved or managed. Currently, 17% of the world’s terrestrial and 10% of marine areas are under protection.

📃Regulatory

The Australian government launches consultation paper for developing climate risk disclosure frameworks for businesses and financial institutions. The Government aims to introduce standardized, internationally-aligned reporting disclosures that will be mandatory for certain entities.
The US House of Representatives passes a package of bills as part of the National Defense Authorization Act aimed at greater ocean protection and to advance coral reef conservation, ocean science, regional ocean partnerships, ocean exploration, shark fin sales, marine mammals, and more. Notable changes include the banning of shark find importation and exportation in the US.
The European Banking Authority publishes roadmap and timeline for new ESG mandates, covering topics including greenwashing, transparency, and risk management.
Taskforce on Nature Markets publishes “The Rights of Nature: Developments and implications for the governance of nature markets.” This paper explores the developments in environmental law and the future of governing nature

📏Measurement & Management

Salesforce launches Automate ESG Reporting, a new ESG data management and reporting solution that allows users to integrate ESG from disparate systems in one place.
First Australians Capital and Indigenous Impact publishes Indigenous-First Impact Framework, a tool to support the growth of the Indigenous Economy.
In 2023, MSCI will launch a new tool for investors to help identify and screen companies at risk of contributing to biodiversity loss and deforestation.
Impact verification and intelligence company BlueMark publishes a framework for evaluating the completeness and reliability of a fund managers’ impact report. The framework is also the basis for BlueMark’s approach to verifying impact reports.

📚Resources

Catalyze’s Fund Manager Fellowship application is now open. The fellowship program is free and designed to provide support to exceptional, first-time and under-represented fund managers.
Venture for America is accepting applications for its two-year fellowship program and career accelerator.

💵 Investors

🔦 Spriing Spotlight with Sara Chamberlain and Energy Foundry

📚 Spotlight Resources

Check out Sara’s reflections on how the climate tech landscape has evolved over the past decade and why she is highly optimistic for what 2023 holds here.
For founders looking for funding from Energy Foundry - check out their Startup Application form.

🌟 New and Emerging Funds

🔦 Spriing Spotlight with Regina “Gina” Kline and Enable Ventures

💬 Emerging Fund Announcements

🌱 Climate:

Climate Asset Management, the natural capital investment manager formed as a joint venture between HSBC Asset Management and climate change investment and advisory firm Pollination, closed over $650M for Natural Capital projects.
Women-led New Fare Partners reaches first close of $20M for fund investing in next-generation food and ag brands, technologies, and marketplaces.
Tommy Leep raised $10M for Jetstream, a climate tech fund investing in pre-seed startups focused on climate, sustainability, and biodiversity.
General Atlantic closes inaugural $3.5B climate solutions fund, BeyondNetZero.
Jenson Funding Partners closed £60M for Aurora I, investing in early-stage startups developing net-zero transition solutions.
The World Fund raised €50 million from the European Investment Fund, with support of the Invest EU programme, to back emerging climate tech across Europe.

💲Financial Inclusion:

Elizabeth Park Capital Management and Calvert Impact announced they are teaming up on an investment fund, the Mission Driven Bank Fund, to invest in mission-driven U.S. banks.

➕ Inclusive:

The Mastercard Foundation launched the Africa Growth Fund, a $200M Fund of Funds, supporting early-stage, growth-oriented SMEs across Africa.
Aruwa Capital, a Lagos based female founded and led early-stage growth equity and gender lens investment fund, closed its first institutional fund, surpassing its target of $20 million.

🔀 Cross-Sector:

Yale SOM is launching a new student-run impact investing fund in 2023, Meng Impact Investment Fund
Ventures Platform, a Pan-African early-stage fund, closes $46M to invest in mission driven founders across Africa.
In collaboration with the Impact Hub Yerevan, the European Venture Philanthropy Association (EVPA) launched the Via Fund, the first impact investment fund for social enterprises in Armenia.

🔁 Fund Re-Ups

🌱Climate:

Union Square Ventures raised $200M for their second climate fund, investing in mitigation for and adaptation to climate change.

➕ Inclusive:

TriLinc Global Impact Fund secured $50M in new funding dedicated to financing growth stage, SMEs in developing economies.

🔀 Cross-Sector:

Nesta Impact Investments, the investment arm of UK social innovation agency Nesta, has announced a new £50m investment strategy to support early-stage technology businesses that deliver strong social and environmental impact.

🗓️ Events

RISE InVC by Included VC

First ever global gathering spotlighting and celebrating Black VCs globally. Content covering Careers in VC, Emerging Managers & VC from a founder's perspective.

📅When: January 17-19

📍Where: Virtual

SAIL Info Session by The Investment Integration Project (TIIP)

Info session on how to join the inaugural cohort for TIIP’s Systems Aware Investing Launchpad (SAIL), a web-based platform that guides investors in developing approaches to mitigate system-level risk.

📅When: January 24, 2pm ET

📍Where: Virtual

GreenBiz 23

The premier gathering of more than 1,600 sustainable business leaders, will deliver the insight and inspiration you need to accelerate change — and your career.

📅When: Feb 14-16

📍Where: Scottsdale, Arizona

The ARPA-E Energy Innovation Summit

13th annual conference and technology showcase that brings together experts from different technical disciplines and professional communities to think about America's energy challenges in new and innovative ways.

📅When: March 22-24

📍Where: Washington, DC

Cumulus

The premiere gathering of industry leaders, innovators, and investors in a showcase of the cutting edge of foodtech, agtech and intersecting climatetech companies.

📅When: April 17-19

📍Where: Las Vegas, NV