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Friday Funds: Taiwan’s pension giant mandates five managers for $2.3bn climate fund

The latest developments in ESG-related funds: Brookfield raises $15bn for climate transition fund, ESG Book raises $35m in latest funding round.

HSBC, Morgan Stanley, Schroders, LGIM and Wellington Management have won a $2.3 billion climate fund mandate from Taiwan’s Bureau of Labour Funds (BLF). The mandate was described by the BLF, the largest pension provider in the country, as the first by an Asian pension fund to track Paris-aligned climate indices. Each manager will reportedly oversee around $460 million worth of assets.

Brookfield Asset Management has raised $15 billion for its global transition fund at the final close, with commitments from more than 100 global institutional investors. The fund, co-managed by Connor Teskey and Mark Carney, has already allocated $2.5 billion to a number of investments including a UK battery storage development, carbon capture in North America and the acquisition of US and German renewables developers with a combined pipeline of 25GW. Brookfield itself is the largest investor in the fund, which significantly exceeded its initial hard-cap and is investing in clean energy and “the transformation of carbon-intensive industries”.

Sustainability data firm ESG Book has raised $35 million from its latest funding round, with investments from Allianz, Meridiam and Energy Impact Partners. The firm, formerly Arabesque S-Ray, will use the funding to expand into the US and to grow its team, CEO Daniel Klier told Reuters.

Intercontinental Exchange has launched a series of 138 climate variants of its corporate debt benchmarks. Each of the index provider’s 23 corporate bond indices is set to receive six variants with different screening and carbon metrics, including Paris-Aligned Benchmark and Climate Transition Benchmark versions of each index.

River and Mercantile has launched two new sustainable equity funds with £120 million ($147.5 million; €139.9 million) of seed capital from UK investor Quilter. The European Change For Better fund will be classified as Article 9, while the Global Sustainable Opportunities fund will be Article 8.

Foodtech investor Synthesis Capital has raised $300 million for its debut fund, which looks to invest in technology to solve global food system and environmental challenges. The fund, which Synthesis claims is the largest ever foodtech fund, will be classified as a green fund under the Guernsey green fund regime and is looking to invest in around 15 companies across the food value chain.

Natixis affiliate manager Mirova has acquired emerging markets clean energy debt company SunFunder for an undisclosed sum. SunFunder, which was founded 10 years ago, has invested $165 million in clean energy systems across 58 countries, mainly in Africa and Asia.

Pictet Asset Management has launched a new Positive Change fund, investing in companies with strong alignment to the UN SDGs, as well as companies improving their alignment and those that Pictet thinks can be improved via engagement. It is classified as Article 8 under the SFDR, and employs a natural language processing tool to assess SDG alignment.

Real assets investor Patrizia has raised €100 million for the first close of its sustainable future venture capital fund. The fund invests in seed to Series B companies with “a strong focus” on Europe in the area of sustainable building technology. It has already made two investments, in building information modelling firm GBuilder and shared transport firm Liftango.