Latest news with #climatefinance
Fast Company
2 days ago
- Business
- Fast Company
The climate lever even seasoned sustainability pros miss
After 20 years working in sustainability, I thought I understood most levers companies could pull to drive impact. As a former CEO and longtime sustainability leader, I have spent my career trying to drive systems change by making businesses and supply chains more sustainable and resilient, advocating for transparency, championing responsible sourcing, and pushing for more equity in business. In these roles, I've thought about where companies banked, how 401(k)s were invested, and even how philanthropic dollars could fund this work. Climate finance came up in those contexts, often tied to investors, philanthropy, or policy. But I had never looked closely at insurance. That turned out to be a major oversight but also a lightbulb moment. Why insurance? Insurance is one of the most powerful, least understood systems shaping business and risk. It doesn't just protect value, it influences where value flows in the first place. And once I began to see that, I couldn't unsee it. The scale is staggering. The industry collects about $8 trillion in premiums each year and manages around $35 trillion in assets. Underwriting decisions influence what gets built, what gets financed, and how companies prepare for risk. These decisions often happen behind the scenes, but they quietly define the boundaries of business. Until recently, I had not considered insurance as a climate lever. Now I see it as an important and underutilized tool to accelerate resilience and impact. Insurance doesn't just reflect risk. It prices it. And pricing influences behavior. When insurers begin to recognize climate-smart practices and reward resilience, they do more than react to a changing world. They help shape it. Insurance and climate That is what led me to join Premiums for the Planet. We work with companies that want to reduce risk, lower costs, and build long-term resilience. Some are vocal about their sustainability goals. Others are making progress quietly, especially in today's political climate, where public conversations around climate and sustainability have become more polarized. But across the board, the work is still happening and insurance can help it go further. Because this is no longer just about climate commitments. It is about business fundamentals and how we can transform business as usual. Insurance is something every company needs and already buys. But few think about how it could be doing more for both their business and the planet. When companies begin to see insurance as a strategic tool, not just a budget line item, they start asking better questions. Are we covered for the risks we are truly facing in a rapidly evolving climate? Do insurers see the investments we have made in sustainability? How can smarter risk management improve our terms or help fund what comes next? Each of these questions opens up opportunities. Companies that explore them often uncover ways to save money, strengthen coverage, and align their insurance strategy with long-term goals. In the short term, insurance can uncover savings and plug gaps. In the medium term, it can enhance business resilience in a warming world and reduce the risks that often go unaccounted for. In the long term, it has the potential to transform an industry that is long overdue for change. That transformation matters. Insurers have the ability to influence entire markets. Their decisions can help slow harmful sectors like fossil fuels and unsustainable land use. Just as importantly, they can help accelerate the growth of renewables, regenerative agriculture, climate technology, and resilient infrastructure by de-risking their development, rewarding their performance, and making them more investable. Insurers as partners Insurers do not need to be cast as villains. The real opportunity is to bring them in as partners. These are institutions that have spent decades pricing risk. They understand long-term exposure. And they are well positioned to help define what a more stable and sustainable economy looks like. But no one company can shift this system on its own, something I've long believed and know from first-hand experience to be true. The insurance industry is too massive, too interconnected, and too entrenched to move for any single player, no matter how large or committed. Change requires coordination. It takes businesses acting together, sending consistent signals, and demanding better alignment between insurance and climate goals. We often talk about invisible systems. Insurance is one of them. And like any system, it can evolve. At a time when government regulation is either too slow or a barrier to real change, this is a lever that business can pull now. Quietly or publicly. Through bold messaging or internal changes. Either way, it counts. We need to broaden our view of climate finance. That means connecting sustainability and risk teams. It means bringing together operations, procurement, legal, and finance. And it means recognizing that insurance is not just a protective layer. It is a tool for change. The companies that lead in the next decade will not only be more sustainable. They will also be more insurable.
CTV News
3 days ago
- Business
- CTV News
Brazil in talks with TPG, Brookfield over US$4 billion climate finance push: Reuters exclusive
Brazil is in talks with global investors including TPG and Brookfield to raise nearly US$4 billion for climate-focused projects, as it ramps up a green finance push ahead of hosting the COP30 climate summit in November. Led by state development bank BNDES, the move is the latest attempt by President Luiz Inacio Lula da Silva's government to encourage private-sector investment in the climate agenda of Latin America's largest economy amid rising fiscal pressure. 'Together with BNDES we are talking to some of the biggest asset managers like Brookfield and TPG and others that could be partners in the funds,' Tatiana Rosito, Brazil's Secretary for International Affairs at the finance ministry, told Reuters. Under the plan, due to be formally launched in August with a public call for investment, BNDES will provide 5 billion reais ($906.3 million) in seed capital, said two sources with knowledge of the matter, both of whom requested anonymity given the confidential nature of the discussions. BNDES has been holding early-stage talks with dozens of domestic and international firms to gauge appetite for the effort, the sources said. Selected managers will be expected to raise three times the amount committed by the bank, bringing total funding to 20 billion reais ($3.63 billion), they added. BNDES did not respond to a request for comment. Brookfield and TPG are among the biggest investors in companies and projects focused on helping the world shift to a low-carbon economy, and both are working closely with Alterra, the world's largest private climate-focused investment fund. Alterra was launched during the COP28 climate talks in Dubai in 2023 with an initial commitment of $30 billion from the United Arab Emirates government. Brookfield and TPG are both running funds seeded by Alterra that can invest in countries like Brazil. Other firms approached by BNDES include BlackRock, the world's biggest asset manager, with more than $12 trillion in assets, impact investor Just Climate, growth private equity investor Lightrock and local firms including Patria, Vinci and Perfin. All declined to comment. The push for private investment comes as some richer countries cut development finance, including the administration of climate-skeptic U.S. President Donald Trump. Brazil has already issued sovereign bonds that tie the use of proceeds to its sustainability agenda, while the Eco Invest Brazil Program aims to reduce the risk of projects, for example around currency volatility, to make it easier for private sector investors to join in. The government last year also launched its Climate and Ecological Transformation Investment Platform to connect investors with projects in sectors including forest conservation, greening heavy industry and energy storage. Monies raised in the upcoming capital call would not be limited to emerging industries, though, and could also support more mature sectors such as wind and solar power, one of the sources said. The bank expects to receive proposals from asset managers by the end of October. Final selection is likely in the first quarter of 2026, with capital ready for deployment by mid-year, the source added. By Simon Jessop, Marcela Ayres and Virginia Furness Editing by Kirsten Donovan
Yahoo
3 days ago
- Business
- Yahoo
Exclusive-Brazil in talks with TPG, Brookfield over $4 billion climate finance push
By Simon Jessop, Marcela Ayres and Virginia Furness LONDON/BRASILIA (Reuters) -Brazil is in talks with global investors including TPG and Brookfield to raise nearly $4 billion for climate-focused projects, as it ramps up a green finance push ahead of hosting the COP30 climate summit in November. Led by state development bank BNDES, the move is the latest attempt by President Luiz Inacio Lula da Silva's government to encourage private-sector investment in the climate agenda of Latin America's largest economy amid rising fiscal pressure. "Together with BNDES we are talking to some of the biggest asset managers like Brookfield and TPG and others that could be partners in the funds," Tatiana Rosito, Brazil's Secretary for International Affairs at the finance ministry, told Reuters. Under the plan, due to be formally launched in August with a public call for investment, BNDES will provide 5 billion reais ($906.3 million) in seed capital, said two sources with knowledge of the matter, both of whom requested anonymity given the confidential nature of the discussions. BNDES has been holding early-stage talks with dozens of domestic and international firms to gauge appetite for the effort, the sources said. Selected managers will be expected to raise three times the amount committed by the bank, bringing total funding to 20 billion reais ($3.63 billion), they added. BNDES did not respond to a request for comment. Brookfield and TPG are among the biggest investors in companies and projects focused on helping the world shift to a low-carbon economy, and both are working closely with Alterra, the world's largest private climate-focused investment fund. Alterra was launched during the COP28 climate talks in Dubai in 2023 with an initial commitment of $30 billion from the United Arab Emirates government. Brookfield and TPG are both running funds seeded by Alterra that can invest in countries like Brazil. Other firms approached by BNDES include BlackRock, the world's biggest asset manager, with more than $12 trillion in assets, impact investor Just Climate, growth private equity investor Lightrock and local firms including Patria, Vinci and Perfin. All declined to comment. The push for private investment comes as some richer countries cut development finance, including the administration of climate-sceptic U.S. President Donald Trump. Brazil has already issued sovereign bonds that tie the use of proceeds to its sustainability agenda, while the Eco Invest Brazil Program aims to reduce the risk of projects, for example around currency volatility, to make it easier for private sector investors to join in. The government last year also launched its Climate and Ecological Transformation Investment Platform to connect investors with projects in sectors including forest conservation, greening heavy industry and energy storage. Monies raised in the upcoming capital call would not be limited to emerging industries, though, and could also support more mature sectors such as wind and solar power, one of the sources said. The bank expects to receive proposals from asset managers by the end of October. Final selection is likely in the first quarter of 2026, with capital ready for deployment by mid-year, the source added. ($1 = 5.5167 reais) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
3 days ago
- Business
- Reuters
Exclusive: Brazil in talks with TPG, Brookfield over $4 billion climate finance push
LONDON/BRASILIA, July 28 (Reuters) - Brazil is in talks with global investors including TPG (TPG.O), opens new tab and Brookfield ( opens new tab to raise nearly $4 billion for climate-focused projects, as it ramps up a green finance push ahead of hosting the COP30 climate summit in November. Led by state development bank BNDES, the move is the latest attempt by President Luiz Inacio Lula da Silva's government to encourage private-sector investment in the climate agenda of Latin America's largest economy amid rising fiscal pressure. "Together with BNDES we are talking to some of the biggest asset managers like Brookfield and TPG and others that could be partners in the funds," Tatiana Rosito, Brazil's Secretary for International Affairs at the finance ministry, told Reuters. Under the plan, due to be formally launched in August with a public call for investment, BNDES will provide 5 billion reais ($906.3 million) in seed capital, said two sources with knowledge of the matter, both of whom requested anonymity given the confidential nature of the discussions. BNDES has been holding early-stage talks with dozens of domestic and international firms to gauge appetite for the effort, the sources said. Selected managers will be expected to raise three times the amount committed by the bank, bringing total funding to 20 billion reais ($3.63 billion), they added. BNDES did not respond to a request for comment. Brookfield and TPG are among the biggest investors in companies and projects focused on helping the world shift to a low-carbon economy, and both are working closely with Alterra, the world's largest private climate-focused investment fund. Alterra was launched during the COP28 climate talks in Dubai in 2023 with an initial commitment of $30 billion from the United Arab Emirates government. Brookfield and TPG are both running funds seeded by Alterra that can invest in countries like Brazil. Other firms approached by BNDES include BlackRock (BLK.N), opens new tab, the world's biggest asset manager, with more than $12 trillion in assets, impact investor Just Climate, growth private equity investor Lightrock and local firms including Patria, Vinci and Perfin. All declined to comment. The push for private investment comes as some richer countries cut development finance, including the administration of climate-sceptic U.S. President Donald Trump. Brazil has already issued sovereign bonds that tie the use of proceeds to its sustainability agenda, while the Eco Invest Brazil Program aims to reduce the risk of projects, for example around currency volatility, to make it easier for private sector investors to join in. The government last year also launched its Climate and Ecological Transformation Investment Platform to connect investors with projects in sectors including forest conservation, greening heavy industry and energy storage. Monies raised in the upcoming capital call would not be limited to emerging industries, though, and could also support more mature sectors such as wind and solar power, one of the sources said. The bank expects to receive proposals from asset managers by the end of October. Final selection is likely in the first quarter of 2026, with capital ready for deployment by mid-year, the source added. ($1 = 5.5167 reais)
Reuters
6 days ago
- Business
- Reuters
NatWest scales-up support for net-zero transition
LONDON, July 25 (Reuters) - British lender NatWest (NWG.L), opens new tab plans to double the amount of money it will dedicate to help clients meet decarbonisation and climate goals, saying on Friday that it recognised it needed to do more to support the energy transition. As well as setting a new target to provide 200 billion pounds ($268.70 billion) in transition and climate finance over the next five years, NatWest has expanded its climate-related financing programme to cover industries crucial to the energy transition like iron and steel and cement. "Supporting the real require vast investment not only in those industries delivering climate solutions, but across a broader spectrum of industries, including hard-to-abate and emission-intensive sectors," the bank said in a statement on its website. Banks globally are looking for ways to support clients from energy-intensive sectors in cutting carbon emissions while at the same time reducing their focus on pure-play climate initiatives. HSBC is the latest bank to leave the industry's climate coalition, following major U.S. lenders as some governments' net zero ambitions cool. NatWest CEO Paul Thwaite told journalists that the bank remains fully committed to the Net Zero Banking Alliance. Its strategy will now include activities like nuclear power generation and gas with carbon capture and storage, but it has dropped social financing. The bank reached 110 billion pounds of climate and sustainable finance in the second-quarter of this year, surpassing a 100 billion pound target, its head of climate change James Close said in a LinkedIn post on Friday. ($1 = 0.7443 pounds)
