In a bold move that underscores the growing intersection of finance and sustainability, Apollo Global Management has ramped up its commitment to climate-conscious investments, channeling over US$30 billion into sustainability and infrastructure projects since 2019. The latest development in this trajectory is a substantial US$10 billion earmarked for climate investments in 2023 alone. This strategic pivot reflects a broader trend in the investment landscape, where environmental, social, and governance (ESG) considerations are no longer optional but essential for long-term viability.
Samuel Feinstein, Apollo Partner and President of ACT Capital, articulated the importance of their recent partnership with Standard Chartered, stating, “We believe this partnership with Standard Chartered will serve as a significant accelerant to the growth of Apollo’s Clean Transition business and support its broader Infrastructure Credit platform, which are critical components of our firm’s strategic growth plans.” This sentiment encapsulates a growing recognition that collaboration among financial institutions is pivotal in addressing climate change.
The alliance between Apollo and Standard Chartered not only amplifies their individual sustainability goals but also represents a significant shift in how financial institutions are approaching climate risk and opportunities. Standard Chartered has its own ambitious targets, committing to deliver US$300 billion in transition and green financing by 2030. Between 2020 and 2024, the bank aims to direct US$35 billion into clean technologies, having already mobilized US$18.4 billion in 2020. This synergy between two financial powerhouses could redefine the landscape of climate financing and infrastructure investment.
Bill Winters, Group Chief Executive at Standard Chartered, emphasized the potential of this partnership, noting, “This partnership with Apollo, a market leader in alternative asset management, is a great opportunity to leverage our collective sector expertise and innovative mindset to help finance sustainable growth.” This statement reflects a growing realization that the future of finance is inextricably linked to sustainable practices. The collaboration could lead to innovative financial products that cater specifically to the needs of green projects, thus attracting a broader range of investors.
The implications of this partnership extend beyond mere numbers. It signals a shift in the narrative surrounding climate investment, moving from a niche market to a mainstream financial strategy. As more institutions recognize the financial merits of sustainability, we can expect a cascading effect, where other firms will feel pressure to elevate their own commitments to climate initiatives.
Moreover, the emphasis on infrastructure credit is particularly telling. As nations and corporations alike strive to meet net-zero targets, the demand for resilient and sustainable infrastructure will only grow. By positioning themselves as leaders in this space, Apollo and Standard Chartered are not just responding to current trends; they are actively shaping the future of investment in a world increasingly defined by its climate challenges.
In essence, this partnership is not merely a financial transaction; it is a clarion call for the investment community to prioritize sustainability. As stakeholders in this evolving narrative, both Apollo and Standard Chartered are setting a precedent that could inspire others to follow suit, ultimately driving more capital into the sectors that will define our collective future.
