In its annual note to client Larry Fink, co-founder of BlackRock, stated that “Climate risk is investment risk” and that "Climate transition presents a historic investment opportunity.” This trend is clearly visible in the public market where UN Principles for Responsible Investment (PRI) signatories grew from 95 in 2006 to over 3,600 in 2020.
The rapid growth of impact investing in recent years has seen a growth in demand for sustainability-related data, Environmental Social Governance (ESG) ratings, and research services.
Already, finance for good startups have emerged tackling these challenges head-on, such as by utilizing Artificial Intelligence to detect and measure climate risk - Carbon Delta (acquired by MSCI) - or by tapping into ESG corporate disclosure (SINAI, Emitwise). A pool of startups is also emerging in other pivotal areas of sustainable finance space like Tomorrow (a sustainable challenger bank), Yova (B2C impact investing platform) and Svasti (microfinance for women).
Read more: check our investing into nature (trees) map: https://app.dealroom.co/lists/21417