A public-private initiative backed by Allianz, AXA, CDPQ and Zurich Insurance Group is preparing to launch a company dedicated to more easily mobilising private capital for sustainable development projects.
The Hamburg Sustainability Platform, now rebranded as SCALED, was announced at the Hamburg Sustainability Conference last year as an initiative to scale up private sustainable investments in emerging markets and developing economies through standardisation.
It now includes Germany, Canada, Denmark, France, the UK, South Africa, and the KfW Development Bank, in addition to the aforementioned asset owners.
In connection with this year’s Hamburg Sustainability Conference the Platform announced the initiave will be operating under the name SCALED, for Scaling Capital for Sustainable Development, and will be “putting standardisation into practice by preparing the launch of a company dedicated to mobilising private capital for sustainable development projects more easily, quickly, and efficiently”.
It said the new company was expected to commence operations at the end of 2025 and immediately begin setting up standardised financial vehicles, such as funds.
The idea is that private and public investors could use these investment vehicles “in a straightforward manner according to a recurring pattern”.
“As such, the company is foreseen to significantly contribute to closing the existing financing gaps in emerging markets and developing countries,” it said, estimating that it could facilitate “several billion US dollars of private investments” in various sectors and regions over the next years.
“The initiative is a significant step toward overcoming structural obstacles hindering large-scale investments in sustainable development”
Günther Thallinger, member of the board of management for investment management, sustainability, Allianz SE
The company also plans to bring together investors with common interests and find suitable international and local asset managers to implement the investments.
In a report last month, the blended finance network Convergence said that funds were becoming the most scalable and replicable blended finance vehicle.
In a speech at the Hamburg Sustainability Conference today, Danielle Brassel, head of responsible investment at Zurich Insurance Group, said SCALED was “a crucial step forward” in overcoming significant hurdles to unlocking blended finance’s power.
“For institutional investors like Zurich, the lack of consistent standards creates unnecessary complexity and risk, hindering our ability to allocate capital efficiently and at scale to impactful projects,” she said.
“SCALED’s efforts to harmonise approaches will significantly reduce these barriers.”
Günther Thallinger, member of the board of management for investment management, sustainability, at Allianz, echoed this sentiment, saying that the rebranded platform was “a significant step toward overcoming structural obstacles hindering large-scale investments in sustainable development”.
“Our involvement in this initiative aligns with our broader strategy of supporting the transition to a net-zero economy while promoting sustainable economic growth. By working together, we can unlock substantial private investments that will contribute to a more equitable and sustainable future.”
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