If you’re a startup founder who has raised venture capital (VC) funding or is looking to do so, you know that global VC funding hit USD 454 billion in the first three quarters of 2021, up from USD 332 billion in 2020 over the same period.What’s interesting is that early-stage funding grew at 104% year-over-year in 2021 to peak at USD 49 billion. VC firms are therefore a critical force in shaping the future of people, planet, and society as they continue to invest in the leading companies and disruptive technologies of the future.
In order for the impact investing industry to reach its potential, the market requires a system for measuring and managing impact results, a methodology for rigorously analyzing and comparing standardized impact data, and a willingness amongst investors to share impact performance data and contribute to the widespread uptake of the analytics they produce.
ESG ratings have become widely used in both active management and ESG indexes, with a growing focus on climate change. This has led to increasing debate about two intertwined questions: First, why are ESG ratings of companies so different across providers? And second, how do ESG ratings reflect climate risk?
Business and financial markets information service provider Bloomberg announced the launch of the Bloomberg U.S. Municipal Impact Index, aiming to track the market of U.S. Green, Social, and Sustainability-categorized municipal bonds.According to Bloomberg, the new index is the first standardized measure of the U.S. municipal tax-exempt investment grade impact bond market.
Climate research provider and environmental disclosure platform CDP and the Partnership for Carbon Accounting Financials (PCAF) announced today a new collaboration, aimed at enhancing financial institutions’ capacity to measure and disclose their financed emissions.According to CDP, financing activities represent by far the greatest aspect of financial institutions’ climate impact, with finance emissions approximately 700 greater than operational emissions. A significant data gap exists in this area, with only a quarter of financial institutions that disclose to CDP reporting on their financed emissions.