INSIGHTS News

• As part of this strategic partnership, ABG acquires a minority stake in a leading provider in the fields of digitalisation and ESG
• The two companies are pooling their expertise in order to expedite the key concept of sustainability in the real estate sector
• With the recent introduction of the ESG Book, Arabesque Group has set a global standard for ESG data platforms
• ABG plans ‘Manage-to-ESG’ funds

Frankfurt/London, 25 January 2022 – ABG Real Estate Group has entered into a strategic partnership with, and acquired a minority stake in, Arabesque Holding Ltd, a leading international financial technology provider. The two companies are pooling their expertise in order to expedite the key concept of environmental, social and government (“ESG”) aspects in the construction and real estate sector together with the construction company Goldbeck, which has already invested, and to establish objective criteria for sustainable investments. The partnership brings together ABG’s long-standing experience across all segments of the German real estate sector with the international ESG resources offered by Arabesque. Ulrich Höller, Managing Partner at ABG Real Estate Group, will be represented on the Advisory Board of Arabesque Holding. As one of the leading ESG data providers in the financial services sector, Arabesque uses artificial intelligence and Big Data to create transparency regarding the sustainability of businesses. At the end of 2021, for example, Arabesque set a new standard for availability and objectification of corporate sustainability data, through the introduction of ESG Book, a global data platform launched in cooperation with international institutions such as the UN Global Compact.

ABG is a signatory to the UN Principles for Responsible Investment (UN PRI), and a member of numerous initiatives pursuing sustainability in the real estate industry –including ECORE (ESG Circle of Real Estate), the German Society for Sustainable Construction (Deutsche Gesellschaft für nachhaltiges Bauen – “DGNB”), and the German Institute for Urban Architecture (Deutsches Institut für Stadtbaukunst).

Ulrich Höller, Managing Partner at ABG Real Estate Group, said: “Our partnership combines Arabesque’s global access to data, their strategic ESG resources and technological expertise with our real estate know-how, in order to further develop the concept of sustainability in real estate investments. For 2022, we are planning to launch a ‘Manage-to-ESG’ fund. The partnership is a key milestone in ABG’s sustainability strategy – both in our nationwide project development activities and in ABG Capital’s investments.

Georg Kell, Chairman of the Supervisory Board of Arabesque Holding, stated: “Allocating capital to sustainable investments plays a decisive role in the real estate sector. Our new strategic partnership with ABG Real Estate Group is a key milestone for combining ABG’s in-depth knowledge of the real estate sector with Arabesque’s technology-focused approach to sustainability. The joint objective is to develop market-leading ESG solutions for the real estate sector, which make ESG integration transparent and scalable in order to meet fast-growing demand for sustainability in practice.”

INSIGHTS News

• Agreement will enable financial organisations, investors and companies to integrate Arabesque’s suite of market-leading ESG data products and insights solutions with Snowflake’s Data Cloud 
• Arabesque clients will be able to use Snowflake’s platform to integrate ESG metrics, raw data assets and regulatory intelligence into their technology stacks securely and in real-time  
•  New partnership will enable Arabesque to deliver streamlined data solutions globally at scale, with no additional integration  or extract transform load required 
• Announcement follows Arabesque’s recent launch of ESG Book, the new central source for accessible and digital corporate sustainability information  

 21 January, 2022, London – Arabesque has today announced a new partnership with Snowflake, the Data Cloud company, enabling financial institutions and investors to integrate Arabesque’s suite of data assets and insights into their technology stacks securely and in real-time.   
 
The partnership will allow Arabesque to deliver its market-leading solutions at scale through Snowflake’s Data Cloud, which offers a centralised and streamlined data delivery experience with no additional integration or extract transform load required.  
 
Clients will be able to use the Snowflake platform to access Arabesque’s wide range of sustainability metrics and raw data on corporate greenhouse gas (GHG) emissions and green revenues, together with its proprietary regulatory solutions including the SFDR Data Solution and TCFD Alignment Barometer.  
 
The announcement follows the recent launch of ESG Book, Arabesque’s new central source for accessible and digital corporate sustainability information that is supported by a global alliance of leading organisations based on a mission to create ESG data as a public good.  
 
Speaking about today’s announcement, Daniel Klier, President of Arabesque, said:  
 
“Demand for accessible, comparable and real-time sustainability data is growing exponentially, driven by global trends that are changing capital markets. Through this new partnership with Snowflake, we are able to offer live data assets to our clients with near-instant updates, delivering best-in-class data and insights at both speed and scale. With the use of cutting-edge cloud technology together with our new ESG Book platform, we are committed to re-shaping the future of ESG data. 
 
Kieran Kennedy, Head of Data Marketplace at Snowflake, said:  
 
“As sustainability continues to shape capital markets, client needs are growing for customisable, scalable and real-time ESG data sets that can be efficiently integrated into investment strategies and regulatory processes. With an approach based on big data and machine learning, Arabesque’s solutions go hand-in-hand with the philosophy of Snowflake, and through this partnership we can deliver a powerful customer offering.” 
 
 
 

INSIGHTS News

As we take stock of the major developments in the world of ESG that took place in 2021 and pen down New Year resolutions for the year ahead, below is a summary of the main announcements around the globe during the last month of 2021. These include the release of IPSF’s Common Ground Taxonomy, UK’s FCA push for climate-related financial disclosures, and regulatory advancements on the “Social” dimension of ESG from the US and Netherlands. 

International Platform on Sustainable Finance releases the Common Ground Taxonomy

• The International Platform on Sustainable Finance (IPSF), which was jointly launched by economies including China and the European Union, released the Common Ground Taxonomy focusing on Climate Change Mitigation (CGT). The CGT includes a list of economic activities that are recognized both by China’s and EU’ green taxonomies and have substantial contribution to climate change mitigation. Read more

Financial Conduct Authority publishes rules for climate-related financial disclosures

• The Financial Conduct Authority (FCA) of United Kingdom published rules requiring asset managers, insurers and FCA-regulated pension providers to make climate-related disclosures consistent with the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD). Read more

AMF/ACPR report on the monitoring and evaluation of climate-related commitments of financial institutions in France

• French Regulators AMF and ACPR released a report on the monitoring and evaluation of climate-related commitments of financial institutions. After publishing a pre-report in October 2021 on fossil fuel sectoral policies and initial estimates of the exposure of financial actors to these sectors, the two authorities also examine in this final report shareholder engagement policies and the role of collective initiatives to which financial institutions adhere, in particular for their “net zero” commitments. The difficulties identified in the assessment of asset managers’ exposure to the oil and gas sector are also outlined. Read more

Brazilian Securities Commission Establishes ESG Information Disclosure Criteria for Listed Companies

• The Brazilian Securities Commission (CVM) issued, on December 22, 2021, CVM Resolution No. 59, which establishes criteria and requirements for the disclosure of information on environmental, social and governance aspects, which was previously a mere deliberation of issuers to attract investors engaged in ESG aspects. Read more

EU’s proposed mandatory Human Rights and Environmental Due Diligence Law further delayed 

• The European Commission has indefinitely postponed directive on human rights and environmental due diligence (HREDD) – more than 150 days after it was first expected to be published. While the reason for the delay is unclear, 47 civil society organizations have penned an open letter seeking “full transparency on the reasons for the delay and on the decision-making process going forwards.” Read more

EU Taxonomy Update: natural gas and nuclear energy in the spotlight

• On 31 December, the EU Commission sent to the Platform on Sustainable Finance and to the Member States Expert Group on Sustainable Finance the long-awaited draft Complementary Delegated Act detailing the technical screening criteria for qualifying natural gas and nuclear energy as sustainable in the framework of the EU Taxonomy. Under the proposal, gas and nuclear power generation would be labelled green on the grounds that they are “transitional” activities – defined as those that are not fully sustainable, but which have emissions below industry average and do not lock in polluting assets. Read more

The FSC and the Korea Exchange launch ESG Information Platform

• Korea’s Financial Services Commission and the Korea Exchange launched an integrated environmental, social and governance (ESG) information platform on December 20, providing a convenient one-stop information service on ESG-related information of listed companies for investors and the public. Read more

Other News

• European Commission publishes FAQ on Article 8 Disclosures Delegated Act: The EC released Frequently Asked Questions (FAQs) document to provide implementation guidance on the content of the Disclosures Delegated Act under Article 8 of EU Taxonomy Regulation (‘Disclosures Delegated Act’). Read more
• The EU’s pensions and insurance regulator EIOPA, announced its sustainable finance activities for the coming three years, aimed at ensuring the integration of sustainability risks into the risk management practices of insurers, re-insurers and occupational pension funds. Read more
• The Netherlands announced plans to introduce mandatory human rights and environmental due diligence (HREDD) legislation at a national level. Read more
• The United States House Representatives passed the ‘Uyghur Forced Labor Prevention Act’. Read more
• The Stock Exchange of Hong Kong Limited (HKEX) published amended Corporate Governance Code (the Code) and Listing Rules. The Revised CG Code and Listing Rules came into effect on 1 January 2022. Read more
• The Singapore Exchange introduced mandatory climate, board diversity disclosures. Read more
  

 

INSIGHTS News

This month we are bringing you the landmark pledges made by various countries at the COP26 summit, the latest on IFRS’s International Sustainability Standards Board (ISSB), an announcement of a Green Taxonomy by Russia, and the launch of the ESG Book – a significant step in the arena of democratizing access to ESG data.

Launch of ESG Book

A global alliance of leading financial institutions, investors and businesses have announced the launch of ‘ESG Book’ on 1 December 2021, a new central source for accessible and digital corporate sustainability information, with the aim of shaping the future of ESG data.  

Developed by Arabesque, ESG Book makes sustainability data widely available and comparable for all stakeholders, enables companies to be custodians of their own data through a digital platform, provides framework-neutral ESG information in real-time, and promotes transparency. Available for all companies, investors, standard-setters, and other stakeholders, ESG Book follows five principles based on a mission to create ESG data as a public good. Read more.  

EU Commission adopts proposal for European Single Access Point (ESAP)

 On 25 November 2021, the European Commission adopted a package of legislative measures, including the establishment of the European Single Access Point (ESAP) platform, offering a single access point for public financial and sustainability-related information about EU companies and EU investment products. This will give investors better visibility of companies, opening up more sources of financing. The European Securities and Markets Authority (ESMA) is tasked with establishing the ESAP by 31 December 2024. Read more 

COP26 Recap: Deforestation and Methane Pledges & Coal Phase-out in sight 

• More than 100 leaders, representing over 85% of the world’s forests, made a pledge to end deforestation by 2030 at COP26. The pledge is backed by almost £14 billion ($19.2 billion) in public and private funding. Read more 
  
• The United States and European Union launched the Global Methane Pledge, an initiative to reduce global methane emissions to keep the goal of limiting warming to 1.5 degrees Celsius within reach.  
  Read more 
  

• Forty countries agreed to phase out coal-fired power by 2040. Read more 
  
• Twenty-five countries and five financial institutions committed to end new direct public support for the international unabated fossil fuel energy sector by the end of 2022. Read more 
  

EU SFDR further delayed to 1 January 2023 

In a letter to the European Parliament and Council published on 29 November, the European Commission requested a delay in the application date of the Sustainable Finance Disclosure Regulation (SFDR) regulatory technical standards, to 1 January 2023. The Commission cited the complexity of the RTS and the need for smooth implementation as reasons for the delay. Read more 

Glasgow Financial Alliance for Net Zero (GFANZ) commits $130 trillion to net-zero transition 

• Through the Glasgow Financial Alliance for Net Zero (GFANZ), over $130 trillion of private capital was committed to transforming the economy for net zero. These commitments, from over 450 firms across 45 countries, can deliver the estimated $100 trillion of finance needed for net zero over the next three decades. Read more 
  

Launch of the International Sustainability Standards Board (ISSB) 

• The International Financial Reporting Standard (IFRS) Foundation announced the formation of a new International Sustainability Standards Board (ISSB), a comprehensive global baseline of high-quality sustainability disclosure standards to meet investors’ information needs. The foundation will further complete the consolidation with the Climate Disclosure Standards Board (CDSB) and the Value Reporting Foundation (VRF) by June 22. Read more 
   
  

Russia’s Green Taxonomy announced 

VEB.RF, Russian State Development Corporation, announced the official adoption of the Russian Green Taxonomy. The taxonomy aims to be comparable with international best practice and VEB.RF designed it to be broadly in line with the Climate Bonds Taxonomy and with substantial contribution components of the EU Taxonomy. Read more 

Hong Kong Exchanges and Clearing Limited (HKEX) issues Guidance on Climate Disclosures 

• Hong Kong Exchanges and Clearing Limited (HKEX) published a new Guidance on Climate Disclosures, one of the first Task Force on Climate-Related Financial Disclosures (TCFD) guides issued by stock exchanges in Asia aiming to provide practical guidance to facilitate listed companies in complying with the TCFD recommendations. Read more 
   
  

ASEAN Green Taxonomy announced 

• The Association of Southeast Asian Nations (ASEAN) released Version one of the Sustainable Taxonomy for Southeast Asian region. The Taxonomy will provide a common language for sustainable finance among the ten ASEAN Member States (AMS) Read more 
   
  

Other relevant news 

• New Zealand’s Financial Markets Authority (FMA) has published its implementation approach for the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Bill (CRD Bill). Read more 
  
• United States’ Office of the Comptroller of the Currency (“OCC”), Michael J. Hsu, issued a call to action on climate change to the boards of directors of OCC-regulated banks. Read more 
  
• The European central bank (ECB) published a report on the state of climate-related and environmental risk management in the banking sector. The report provides an overview of the current state of play and examples of good practice banks can adopt to mitigate climate-related risks. Read more 
  
• The International Platform on Sustainable Finance (IPSF) published the “State and trends of ESG disclosure measures across IPSF jurisdictions, Brazil and the US” report which presents a stock take of ESG disclosure measures across these jurisdictions and identifies trends and gaps. Read more 
   

Speeches 

• Keynote speech by Verena Ross, Chair of ESMA DSW Conference “ESG – Next Level Reporting, Risk Management, Strategy and Responsibility”. Read here the complete speech 
  

 

INSIGHTS News

Our team at Arabesque has solved great challenges with Google Cloud. Listen to Arabesque’s Yasin Rosowsky, Nikolaos Kaplis, Ngoc Vu, Mabelle Chen and Matthias Baetens explaining what data challenges they have faced, how BigQuery has helped them and what is next on their journey.

INSIGHTS News

Press release under embargo until 08:00 BST, 17^th November, 2021 

• New agreement will enable investors to access Arabesque S-Ray’s suite of ESG data products hosted on AWS Data Exchange, through GoldenSource ESG Impact. 

• GoldenSource clients will be able to leverage Arabesque’s new solution to help investors meet upcoming disclosure requirements of the Sustainable Finance Disclosure Regulation (SFDR).

• Announcement comes as investor demand for ESG data surges, with one third of all assets under management globally now integrating sustainability factors.

17^th November, 2021, London – GoldenSource and Arabesque today announced a new partnership enabling buy-side and sell-side investors to access Arabesque S-Ray’s suite of ESG data assets and insights hosted on AWS Data Exchange, through GoldenSource ESG Impact. 

The partnership will allow GoldenSource clients to leverage S-Ray’s ESG metrics and raw emissions data on companies across the world’s major stock indices, together with business involvement filters for over 25,000 companies globally. Using big data and a quantitative, algorithmic approach, Arabesque’s capabilities draw on more than four million ESG data points daily from over 30,000 sources for performance measurements on sustainability, including corporate net-zero alignment. 

Through a large network of ESG data provider partners and content specialists, the GoldenSource ESG Impact solution offers full depth and breadth of ESG data coverage, enabling users to make truly informed investment decisions. Going further, GoldenSource inbound APIs enable easy on-boarding of current and future structured and unstructured ESG content from new data sources. This makes it easier to find proxy data for firms for which ESG data is missing; for completing submissions for regulations such as SFDR; and for populating reports that demonstrate investments fall within clients’ sustainability mandates.

As part of the agreement, investors will also be able to gain access to Arabesque’s new ‘SFDR Data Solution’, a toolkit developed for asset managers and investment professions to ingest data needed for Sustainable Finance Disclosure Regulation (SFDR) reporting. 

Speaking on today’s announcement, John Eley, CEO of GoldenSource, said: 

“Taking action with ESG data has become an essential capability for financial firms, yet for most practitioners it’s a newly established discipline that’s evolving rapidly. As such, having Arabesque’s deep ESG data sets, created by practitioners for practitioners, via a serviced connection into our solution for taking action on ESG data, brings immediate capability and the flexibility to keep up as things evolve.”

Dr Daniel Klier, President of Arabesque, added: 

“More than ever before, investors understand the critical need for high-quality ESG information to facilitate the transition to a more sustainable, net-zero future. Through this partnership with GoldenSource and their market-leading solution, we look forward to enabling institutional investors to leverage Arabesque’s range of ESG data assets and products for enhanced decision-making.”

Today’s announcement comes as investor interest in ESG information continues to grow, with more than $35 trillion now invested through ESG strategies, representing about a third of all professionally managed money around the world.  

INSIGHTS News

• Commencing in January 2022, Arabesque Asset Management Singapore Pte. Ltd. (Arabesque) will be embarking on an AI project that focuses on financial knowledge graphs, understanding data bias with application to transfer learning, and general machine learning approaches for financial analysis and modelling.  

• The project will be used to enhance Arabesque’s existing AI business activities such as identifying alpha opportunities. 

• An engineering and research unit dedicated to the advancement of AI and automation in asset management will be established as part of the project. 

• Arabesque is hiring AI engineers and researchers in Singapore that will help establish Singapore as a leading centre for AI in finance.  
  

12 November 2021, Singapore – Arabesque today announced that it will embark on an AI project which focuses on financial knowledge graphs, understanding data bias with application to transfer learning, and general machine learning approaches for financial analysis and modelling. This will enhance Arabesque’s existing AI business activities such as identifying alpha opportunities.  

Commencing in January 2022, the project will run for two years and support Arabesque in developing capabilities in cutting-edge areas of AI. The work undertaken by the AI research unit is expected to enhance Arabesque’s existing business activities such as developing data engineering capabilities, improving the accuracy at which alpha opportunities are identified for its investment strategies, and utilising new unstructured sources of data as inputs into its financial models.  

The project is supported under the Financial Sector Technology & Innovation – Artificial Intelligence & Data Analytics (FSTI – AIDA) scheme, which aims to strengthen the AIDA ecosystem in the Singapore financial sector. The FSTI – AIDA scheme is funded by the Financial Sector Development Fund, administered by the Monetary Authority of Singapore. 

The project will involve the establishment of an AI engineering and research unit based in Singapore, which will be dedicated to the advancement of AI and automation in asset management. Arabesque will be hiring a team of AI engineers and researchers in Singapore as part of the new unit.  

The team will be led by Arabesque’s Dr Qasim Nasar-Ullah, a co-founder of Arabesque’s AI business, who will take on a new role at the firm’s Singapore office. All work undertaken by the AI unit will be used to enhance Arabesque’s existing AI capabilities, and will be utilised to help establish Singapore as a world-leading centre for AI in asset management.   

Dr Yasin Rosowsky, CEO of Arabesque AI, said:  

“Artificial intelligence will play a vital role in financial services over the next decade and will help accelerate the shift towards more sustainable capital markets. We are honoured to have been awarded the FSTI – AIDA grant and look forward to working on developments that will advance the innovative application of AI in asset management. 

We are excited at the prospect of building an AI engineering and research team in Singapore to deliver cutting-edge AI solutions for the fintech ecosystem of Singapore and beyond.” 

Headquartered in London, Arabesque Asset Management is part of the Arabesque Group, which aims to advance sustainable finance through investment solutions, market-leading data assets, AI, and financial technology expertise.  

INSIGHTS News

October 2021 has been one of the most eventful months of the year, with a series of updates across ESG disclosure requirements, regulations, and sustainable investing provisions. In the run up to COP26 in Glasgow, we bring you up to speed on the updated EU Taxonomy and SFDR Regulatory Technical Standards, ECB’s climate stress test methodology, UK’s Green Finance Roadmap, and many more interesting developments across the global sustainability reporting.

Global Reporting Initiative (“GRI”) raises the global bar for due diligence and human rights reporting

The GRI published its revised Universal Standards on 5^th October, clarifying material topics and providing guidance on reporting principles. In the most significant change since the standards launched in 2016, GRI also unveiled the first GRI Sector Standard for the oil and gas industry, further bringing material ESG reporting into focus. Read more 

The European Financial Reporting Advisory Group (EFRAG) publishes final ‘Towards Sustainable Business’ report  

The project task force on reporting of non-financial risks and opportunities, and linkage to the business model (PTF-RNFRO) published its Final Report titled ‘Towards Sustainable Business: Good Practices in Business Model, Risks and Opportunities Reporting in the EU’, including a supporting ‘Supplementary Document: Good Reporting Practices’. Read more 

European Supervisory Authorities (ESAs) update draft Regulatory Technical Standards (RTS) for SFDR and EU Taxonomy alignment  

EU Regulators provided much required clarity on the long-awaited RTS, including further detail regarding the scope of Taxonomy alignment disclosures that take effect in July 2022. In particular, supervisors shed light on sovereign bond disclosures, Do-No-Significant-Harm (DNSH) reporting, as well as the relationship between SFDR and EU Taxonomy criteria. Read more.  

ECB releases bank climate stress test methodology 

The forthcoming ECB Climate Risk Stress Test will require lenders to report on a common set of climate risk metrics, including the volume of greenhouse gas emissions they finance. As of 2022, banks will also be required to assess their exposure to short-term physical and transitional climate risks, and to evaluate their response to common transition scenarios over the next 30 years. Read more. 

European Commission Study on the integration of ESG factors into banks’ risk management processes, business strategies and prudential supervision 

Findings show that ESG integration is at an early stage, and the pace of implementation needs to be accelerated in order to achieve effective ESG integration into banks’ risk management and business strategies, as well as prudential supervision. To support this acceleration, enhancements are required on ESG definitions, measurement methodologies, and associated quantitative indicators. A lack of adequate data and common standards remain key challenges to overcome to drive ESG integration. Read more 

UK’s Green Finance Roadmap published 

In a significant development in the UK government’s drive towards “greening” the financial system, as part of the transition to a net-zero carbon economy, Her Majesty’s Treasury (HMT) published a policy paper entitled “Greening Finance: A Roadmap to Sustainable Investing”.  Read more. 

US Shareholder Rights Regulation takes favourable view on ESG Investing 

On October 14, 2021, the U.S. Department of Labor (the “DOL”) published a proposed regulation entitled “Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights” (the “Proposed Rule”).  The Proposed Rule is the latest in a series of DOL guidance and regulations regarding a plan fiduciary’s consideration of ESG factors when making investment decisions for ERISA (Employee Retirement Income Security Act of 1974) plans and the exercise of shareholder rights by such plans. Read more. 

The US Financial Stability Oversight Council (FSOC) releases 133-page report on Climate-Related Financial Risk  

Published on 21 October, the Report and related Factsheet discuss how climate-related financial risks can implicate financial stability and declare climate-related finance risk as an emerging threat to financial stability. 

Global Collaboration: IMF, World Bank and OECD  

The three international bodies are working together on classification systems to harmonize and support the development of sustainable finance markets. Read more 

Other News 

• New Zealand passes world-first climate reporting legislation. Read more 
• French Regulator AMF publishes initial conclusions of the Climate and Sustainable Finance Commission on the carbon neutrality of companies. Read more 

• Illinois Enacts Comprehensive Climate and Clean Energy Legislation. Read more 
• The International Energy Agency (IEA) released its flagship report “World Energy Outlook Report 2021 examining the full spectrum of energy issues in oil, gas, coal and other forms of energy. Read more 
• UN Human Rights Council formally recognized that access to a healthy environment is a fundamental human right. Read more 
  

Podcasts and Speeches 

• ​Listen to the latest EFRAG podcast related to the European Lab Project Task Force on the reporting of non-financial risks and opportunities and the linkage to the business model (PTF-RNFRO) report. The third and final episode on the report highlights the current and potential role of technology in sustainability reporting. 

• “The Earth has a deadline. Let’s make it a lifeline”: An insightful keynote address and speech by Mr. Ravi Menon, Managing Director, Monetary Authority of Singapore on “What We Need to Do to Make Green Finance Work” at Financial Times Investing for Good Asia Digital Conference on 8 September 2021 Read the complete speech here. 

 

INSIGHTS News

The new fund will invest in innovative technologies that solve urgent sustainable development challenges across Asia 

Singapore, 27 October 2021  – Tembusu Partners in collaboration with Eco-Business announced the launch of the Sustainable Future Fund (SFF), an inaugural platform that will deploy purpose-driven capital into solving the most urgent sustainable development challenges across Asia. 

The targeted USD 100 million fund will pursue high impact growth stage opportunities across the region that focuses on addressing the climate crisis and reducing social inequalities. 

The Intergovernmental Panel on Climate Change (IPCC) report issued recently — described as “a code red for humanity” by the UN Secretary General António Guterres — warns that rising temperatures will lead to dangerous weather extremes and rising sea levels in the coming years, and Asia is particularly vulnerable to its effects.  

With the COP26 UN Climate Change Conference set to take place next month in Glasgow, Scotland, Guterres has stressed that more ambition is needed with respect to climate mitigation, adaptation, and finance. 

For Southeast Asia in particular, sea levels are rising faster than elsewhere, and shorelines are retreating in coastal areas where 450 million people live. At the same time, the region is also home to the world’s most rapidly developing markets with huge infrastructural needs.  

Developing Asia will need to invest US$1.7 trillion per year in infrastructure until 2030 to maintain its growth momentum, tackle poverty, and respond to climate change. In the aftermath of the global Covid-19 pandemic, Income inequality is also worsening in the region. A recent UNESCAP report reveals that even before the pandemic, the Asia-Pacific region was not on track to meet any of the UN Sustainable Development Goals (SDGs) by 2030.  

The Sustainable Future Fund is uniquely positioned to help address these challenges and drive change in the region with its impact-driven investment strategy and proprietary framework for ESG assessment that will ensure its portfolio companies deliver not just financial returns but demonstrable impact. 

It will take a broad sector approach and focus on the five high opportunity areas it has identified: energy transition, circular economy, sustainable food and agriculture, access to health and education, and financial inclusion. 

The Sustainable Future Fund will tap on the vast, combined networks of Tembusu Partners and Eco-Business which provide an inside track to a strong deal pipeline, and will seek family offices and investors who are aligned in values and committed to supporting this mission to create impact in Asia.  

The fund is pleased to welcome its first overseas investment partner, Horizon Family Partners, who have committed to raise up to US$20 million from a number of prominent international family offices.  Horizon Family Partners was created to bring together like-minded multi-generational families to deliberate innovative ideas relating to global sustainability.  

“The themes we are focusing on in this fund target founders and companies which solve some of the biggest issues of our era. Together with Eco-Business, we aim to support the scaling up of new and growing impact-driven businesses in Asia, towards building a sustainable future. We are also delighted that KPMG will be supporting the Fund as its Knowledge Partner,” said Andy Lim, chairman of Tembusu Partners. 

The fund also welcomed international advisory board members to its team. They include: 

•  Georg Kell, founding executive director of the United Nations Global Compact and chairman of Arabesque;  
• Michael Meehan, chairman of the UK Sustainable Investment & Finance Association (UKSIF) and former CEO of the Global Reporting Initiative (GRI);  

• Nicholas Parker, impact entrepreneur, founder of The Cleantech Group and former chair of Corporate Knights;  
• and chaired by Lim Hwee Hua, Former Minister in the Office of the Prime Minister of Singapore and Second Minister for Finance and Transport 

The fund has a robust pipeline of quality deals and has already invested in an Indonesian start-up in the financial inclusion space. It is in the midst of investing into another three opportunities in the region involved in areas such as mental health, energy transition and sustainable cities. 

The Fund features General Partners Andy Lim and Jessica Cheam; and a seasoned investment team led by Jonathan Ang and Jen Loong as well as technical experts Junice Yeo, Brandon Courban, and Tharani Prakash.  

“This unique fund will be well-positioned to tap the growth of the ESG and impact investing space in Asia. By helping to facilitate capital into the most promising companies in the region, we will be able to further scale our sustainable development impact,” said Cheam. 

Lim Hwee Hua, advisory chair, added: “The urgency of the climate crisis is finally becoming the mainstream concern that it should be. The good news is that ESG and finance are becoming more closely intertwined – and there is growing evidence today to show that investors can see better, more sustainable returns through ESG investing. There is a huge opportunity here for capital to be deployed in game-changing solutions across Asia.” 

About Tembusu Partners 

Tembusu Partners is a boutique private equity investment firm that invests in promising early and growth-stage companies with a view to generate sustainable returns for both investee companies and investors. Besides supporting companies through mezzanine and equity financing, it also contributes operational expertise to help them grow. Headquartered in Singapore, its primary geographical markets are within Emerging Asia – comprising China, India and Southeast Asia. For more information, please visit www.tembusupartners.com. 

About Eco-Business    

Established in 2009, Eco-Business is an independent media and business intelligence company dedicated to sustainable development and ESG performance. It publishes high quality, trusted news and views in multimedia formats on business and policy developments around the world with a sustainability and ESG-focused lens. Eco-Business provides research and consulting on a wide range of issues which create strategic value for our partners and clients. It owns and creates thought-leadership platforms which inform policymaking, improve business practices and foster collaboration among different sectors. Eco-Business is headquartered in Singapore, with a presence in Manila, Beijing, Kuala Lumpur, Zurich, New York, and correspondents in major cities across the world. Visit at www.eco-business.com for more information.

It also hosts a new global sustainability innovation platform called The SDG Co. This tech-driven platform connects start-ups, corporates, governments and investors working on the United Nations’ Sustainable Development Goals (SDGs) and provide a global community space where people and businesses across the globe can network, learn, meet experts, partner and share innovations. 

About the Arabesque Group  

The Arabesque Group is comprised of three businesses, Arabesque Asset Management, Arabesque S-Ray and Arabesque AI, that work together to advance sustainable finance through investment solutions, AI and financial technology expertise. Established independently in 2013, Arabesque’s mission is to enable clients and other stakeholders to implement sustainability in their investments and financial decision-making. Arabesque counts many of the world’s leading banks, asset managers, asset owners and custodians as its clients. Visit arabesque.com for more information.  

INSIGHTS News

• Arabesque S-Ray ESG data and insights now included with Glass Lewis Proxy Paper research reports, providing clients with market-leading sustainability intelligence on over 8,000 companies worldwide 

• Partnership enables Glass Lewis’ clients to access a suite of ESG, climate, and regulatory data solutions for corporate governance and shareholder engagement 

• Announcement comes as investor demand for ESG data surges, with one third of all assets under management globally now integrating sustainability factors 

• Over 1,300 institutional clients, including most of the world’s largest pension plans, mutual funds, and asset managers use Glass Lewis’ research and technology solutions 

20^th October 2021, London, and San Francisco – Arabesque, a global leader in ESG data and insights, and Glass Lewis, a leading provider of global governance solutions, today announced a new strategic partnership to provide many of the world’s largest investors and corporates with market-leading sustainability intelligence for proxy voting and shareholder engagement.  

The partnership will see Arabesque provide company ESG profiles for Glass Lewis’ Proxy Paper research reports, enabling clients to gain the latest ESG data and insights on over 8,000 companies worldwide, and access to climate and regulatory data solutions. Using big data and a quantitative, algorithmic approach, Arabesque’s capabilities draw on more than four million ESG data points daily from over 30,000 sources for performance metrics on sustainability, including corporate net-zero alignment.  

The announcement comes as investor interest in ESG information continues to surge, with approximately one third of all assets under management now integrating sustainability considerations, and a fifth of the world’s 2,000 largest public companies pledging to meet net-zero targets ahead of the COP26 UN Climate Change Conference.   

Speaking about today’s announcement, Dr Daniel Klier, President of Arabesque, said:  

“Over recent years, we have witnessed the unprecedented rise of ESG as a mega-trend that is re-shaping capital markets, with global ESG assets on track to exceed $50 trillion by 2025. And it is driving investor demand for accessible and transparent sustainability data that can enable better decision-making and enhance management of ESG risks and opportunities.” 

“By including Arabesque’s technology-driven ESG data and insights alongside Glass Lewis’ market-leading Proxy Paper research reports, this new strategic partnership will enable the world’s largest investors to accelerate smarter analysis of corporate sustainability performance. Together, we are excited to deliver solutions that will benefit all shareholders.”  

Dan Concannon, Chief Commercial Officer of Glass Lewis, said:  

“Investors and public companies from around the world rely on insights from Glass Lewis to make important governance decisions. ESG issues have become an increasingly critical challenge requiring deeper scrutiny into corporate sustainability performance. We believe that our strategic partnership with Arabesque to deliver profound insights and access to ESG, climate, and regulatory data will quickly become a critical tool in the stewardship process.”  

Over 1,300 institutional clients, including most of the world’s largest pension plans, mutual funds, and asset managers who collectively manage over $40 trillion in assets, use Glass Lewis’ research and technology solutions to inform and facilitate their corporate governance activities. 

Ends 

Notes to Editors 

For media enquiries and for further information, please contact Ciaran McCale, Head of Communication, Arabesque Group: 

Email: ciaran.mccale@arabesque.com  Mobile: +44 (0)7956 175100 

Or Glass Lewis Media Relations: 

Email: mediarequests@glasslewis.com 

About the Arabesque Group  

The Arabesque Group is comprised of three businesses, Arabesque Asset Management, Arabesque S-Ray and Arabesque AI, that work together to advance sustainable finance through investment solutions, AI and financial technology expertise. Established independently in 2013, Arabesque’s mission is to enable clients and other stakeholders to implement sustainability in their investments and financial decision-making. Arabesque counts many of the world’s leading banks, asset managers, asset owners and custodians as its clients. Visit arabesque.com for more information.  

About Glass Lewis  

Glass Lewis is a leading provider of global governance solutions. We enable institutional investors and publicly listed companies to make sustainable decisions based in research and data. We cover 30,000+ meetings each year, across approximately 100 global markets. Our customers include the majority of the world’s largest pension plans, mutual funds, and asset managers who collectively manage over $40 trillion in assets. Our core solutions include Proxy Paper proxy research and Viewpoint proxy vote management platform. Visit www.glasslewis.com for more information.