In the dynamic landscape of impact investing and sustainability, several noteworthy initiatives and investments are driving significant progress toward a more equitable and sustainable future. From innovative financing to nature-focused investments, here’s a roundup of the latest developments.
Rockefeller Foundation’s Zero Gap Fund Raises $1.04 Billion:
The Rockefeller Foundation, in collaboration with the MacArthur Foundation, has raised over $1.04 billion through its Zero Gap Fund to advance the United Nations Sustainable Development Goals (UN SDGs). This fund, launched in 2019, aims to mobilize private investments toward critical areas such as health, gender equality, and employment. In 2023 alone, the fund made significant strides with investments focused on climate change, financial inclusion, and sustainable development.
Key initiatives include:
Blue Forest’s Forest Resilience Bond I: This project mobilized private capital for forest restoration, mitigating 27,280 metric tons of CO2e emissions and restoring 2,675 acres of ecosystems.
LeapFrog’s Emerging Consumer Fund III: This fund provided healthcare and financial services to 14.8 million consumers in emerging markets and created over 97,000 jobs.
Lightsmith’s CRAFT: Reduced 1 million tons of greenhouse gas emissions and generated 1,300 new jobs globally.
Impact Investment Exchange’s Women’s Livelihood Bond 2: Reached over 114,000 women and provided financial literacy training to 18,000 women.
Founder’s First Capital Partners: Deployed $8.9 million across 35 loans to underrepresented entrepreneurs in the U.S.
These investments underscore the Zero Gap Fund’s commitment to scalable, impactful solutions addressing global challenges .
Temasek's Commitment to Nature and Direct Impact Investments
Singaporean investment giant Temasek Holdings has taken significant steps towards sustainability with its first direct impact investments. In its inaugural sustainability report, Temasek detailed its approach to environmental, social, and governance (ESG) and impact investing, highlighting its $389 billion portfolio's commitment to sustainable practices.
Notable actions include:
Nature Risk Assessment Tool: Temasek is exploring the introduction of this tool to identify assets close to key biodiversity areas or protected regions.
Partnerships and Direct Investments: Temasek Trust, the philanthropic arm, has supported ABC Impact and committed $500 million to LeapFrog Investments. Additionally, Temasek made a direct investment in SarvaGram, a company providing financial and productivity solutions to rural households in India.
These efforts reflect Temasek's strategy to leverage GP relationships while increasingly making direct impact investments .
Eiffel Investment Group’s €200 Million Impact-through-ESG Debt Fund
Eiffel Investment Group has successfully raised €200 million for its impact credit fund, with a target of €400 million. This fund focuses on instigating ESG improvements in businesses that may not initially prioritize impact. Unlike traditional impact funds, Eiffel's strategy involves working closely with companies to implement ESG improvements through unitranche loans.
Key features include:
ESG Covenants: Loans come with covenants related to decarbonization, employee training, and profit-sharing incentives. Failure to meet these covenants can trigger a default, though Eiffel prefers to support companies in achieving these goals.
Holistic Support: Eiffel aims to go beyond financial incentives, providing advice and support to companies, especially those new to ESG practices.
Eiffel’s approach demonstrates the potential of innovative financing to drive ESG improvements across various sectors .
IIS: Supporting Global Education and Sustainability
At IIS, we support initiatives like these as they align perfectly with our mission to cultivate thriving, joyous societies and preserve our vibrant planet for future generations. By promoting such impactful investments, we contribute to achieving the United Nations Sustainable Development Goals (UNSDGs) and advance the field of impact investing.
If you are a business or individual interested in presenting or showcasing your work globally, reach out to us at apply@iisolutions.ch. Join us in making a positive impact and promoting sustainability on a global scale.
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