Once again, Grant Harrison and his team at Greenfin nailed it with their June 17-19 Greenfin event in NYC last week, bringing together top minds and superheroes of sustainable finance. The event was a who’s who of capital providers, CSOs, advisors, vendors, experts and enigmatic sages – not to mention the new Emerging Leaders who stole the show.
On the marketing front, companies are shifting the focus of their messaging from chest-thumping to client-centric storytelling backed by solid data. There was a noticeable shift away from the ESG moniker to sustainability and impact. Deal teams shared their war stories, with nature investing, transition finance and the net zero transition generating lots of interest.
Highlights:
A rose by any other name …
- The shift from ESG to sustainability/impact reflects a broader, more integrated approach to corporate responsibility and environmental impact. Companies are working to embed sustainability into core strategies, quietly moving from the term ESG for teams and initiatives. Tellingly, a Big 4 accounting firm has recentlyrebranded its substantial ESG team as “sustainability,” with other advisors considering similar moves. A poll of Greenfin attendees has a significant 33% of responders saying they are actively moving away from ESG, with the rest either all-in and sticking with ESG, or thinking the fuss around the term will blow over.
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Guardians of sustainable M&A
- Mergers and acquisitions are increasingly influenced by sustainability considerations, making them a hot topic for traditional lenders, investors and PE firms alike. Robert Esposito, MD and Senior Counsel for Sustainability for Apollo quipped that deals can’t be “red if they’re green.” He and the panel emphasized the value that green issues can bring to a deal, while warning about the perils of ignoring these issues. They shared a few deals-gone-south stories, stories that horrify but always inform. Whether for larger companies initiating IPOs or SMEs considering buying or selling, green considerations are becoming a standard part of every due diligence list.
Shared quests
- Nature as Investable Infrastructure: The economic value of natural systems and investing in nature was a hot topic, showing lots of interest and the promise of significant financial and environmental returns.
- Corporate Climate Disclosure: Discussions focused on the evolving landscape of corporate climate reporting, highlighting new regulatory requirements and the importance of third-party assurance for accurate sustainability data.
- Transition Finance: The role of transition finance in supporting high-emitting industries’ shift towards net-zero emissions was critical, involving substantial investments to decarbonize sectors like steel, aviation, and shipping. New ways to evaluate deal criteria credit worthiness were hot topics.
- Investing in the Net Zero Transition: Financing strategies for a net-zero future were hot topics. With the Inflation Reduction Act (IRA) playing a significant role in funding clean energy projects, there was real handwringing about its fate post the upcoming elections. Scope 3 emissions continue to be discussed and examined for ways to increase clarity.
It was great to see so many old friends and make new ones. Congrats again to Grant Harrison and his team for a great event.
