Korea Hydro sells Asia’s first green bond for nuclear energy: South Korean-owned Korea Hydro and Nuclear Power raised HKD 1.2 bn (c.USD 154 mn) from a green bond issuance that was dubbed as Asia’s first green nuclear bonds, Bloomberg reported on Wednesday. The notes were sold to institutional investors in Hong Kong and Singapore, with proceeds earmarked for nuclear power plant safety upgrades and R&D for next-gen reactors. Looking forward, the company is in talks with parties around the world to meet the government’s goal of exporting 10 reactors by 2030.

JP Morgan’s sustainable investment funds under scrutiny: JP Morgan has poured more than GBP 200 mn into London-listed mining giant Glencore — whose coal mining operations in South Africa have recently come under the microscope for environmental violations, The Guardian reported on Saturday. The South African government has blasted the company’s operations in Tweefontein mine — one of three complexes operated by Glencore in the country — for polluting a local river, improperly storing hazardous waste, and neglecting sewage infrastructure.

The leeway: While JP Morgan promotes around 500 funds as “sustainable,” the bank’s criteria allow up to 49% of investments in these funds to go to assets that don’t meet strict ESG standards.

ESG? Extra special greenwashing? Ethical investing is a booming business for financial giants like JP Morgan, with global sustainable assets on track to exceed USD 40 tn by 2030. But campaigners argue that by backing Glencore through funds with an ESG label, JP Morgan risks misleading investors looking for actual green portfolios.

EIB supports green on-lending in West Africa with a USD 150 mn loan: The European Investment Bank (EIB) has agreed to provide a EUR 100 mn line of credit from a total of EUR 150 mn to the Ecowas Bank for Investment and Development to support climate action and sustainability in the Economic Community of West African States (Ecowas) region, according to a press release from last week. The loan will fund green projects that support economic growth such as renewable energy — particularly small and medium solar PV projects — sustainable agriculture, and water treatment. The EIB is aiming to mobilize total investments of at least EUR 300 mn.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

  • Japan’s Idemitsu to back Toyota’s next-gen EV batteries: Japanese oil refining company Idemitsu Kosan will build a JPY 21.3 bn (c.USD 143 mn) large-scale plant at its China refinery to produce lithium sulphide, a key material for solid-state batteries. The project builds on the existing partnership with Toyota, which is pushing to launch EVs with all-solid-state batteries by 2027-2028. The facility — set to be completed by June 2027 — will have an annual production capacity of 1k metric tons, enough to supply solid electrolytes for 50k-60k EVs. (Reuters)
  • Wells Fargo scraps net-zero goal in its lending portfolio: Wells Fargo is ditching its financing net-zero target by 2050 and scrapping its sector-specific interim emissions goals for 2030, as it pulls back from climate commitments in its lending portfolio. The lender will still work toward its own operational sustainability targets for 2030 and 2050. The move comes after Wells Fargo exited the NZBA in December, joining a wave of other US and global banks. (Reuters)
  • Goldman Sachs close to spending USD 750 bn on climate: Goldman Sachs has completed more than 80% of its goal of contributing USD 750 bn to the low-carbon transition by 2030. The bank has directed returns from its financing, investing, and advisory activities toward backing clean energy, low-carbon transport, and sustainable agriculture. (Bloomberg)
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