U.S. and Ukraine Sign Strategic Mineral Deal

Today’s ESG Updates

• U.S. and Ukraine Sign Long-Awaited Mineral Deal: The U.S. provides further defense for Ukraine in return for profits from the future sale of Ukraine’s mineral reserves.
• Finance Execs Reconsider ESG: Finance leaders are rethinking ESG investments amid market and political pressure.
• Finland Issues €180M Green Bond: MuniFin launched a green bond to support local climate and infrastructure projects.
• Spain’s Blackout Cause Still Under Investigation: Experts suggest that Spain’s reliance on renewables did not cause Monday’s power outage.

U.S. and Ukraine Sign Strategic Mineral Deal

The U.S. and Ukraine have signed a historic agreement to establish a joint investment fund for the future sale of Ukraine’s vast mineral reserves. Key minerals included in the deal are graphite, titanium, and lithium, all crucial for clean energy, defense, and infrastructure. The deal grants the U.S. partial access to Ukraine’s natural resources, and in return, Washington has promised new assistance to Kyiv, including air defense systems. The agreement comes amid Trump’s trade war with China, where 90% of the world’s rare-earth stocks are currently sourced. Investors can leverage ESG solutions to remain informed on critical mineral partnerships and their ESG implications. 

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Further reading: US and Ukraine sign long-awaited natural resources deal

Finance executives reassess ESG as market sentiment shifts

Recruiters advising banks and money managers indicate that finance executives are experiencing “buyer’s remorse” over their ESG investments. An obvious contributor to this sentiment is Trump’s return to the Oval Office, which has acted as a brake on ESG hiring across the U.S. In Europe, backlash against ESG has not been as pronounced but more focused on implementation. Some executives feel that ESG initiatives were pursued more for reputational benefits than financial returns, suggesting a need for more robust ESG frameworks and clearer metrics to evaluate the profitability and impact of sustainable investments.

Photo Credit: charlesdeluvio

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Further reading: Buyer’s Remorse Hits Finance Bosses Who ‘Overhired’ for ESG

Finland’s MuniFin issues €180M green bond

Finland’s Municipal Finance (MuniFin) has successfully issued a €180 million green bond to finance sustainable public sector projects. The proceeds will support initiatives in renewable energy, energy efficiency, clean transportation, and sustainable waste management. Munifin has set the goal to issue at least one green bond per year and has stated that projects eligible for green finance must meet Green Bond Framework requirements. The credit institution is owned by Finnish municipalities, the State of Finland, and the public sector pension fund Keva, and seeks to align with Finland’s carbon neutrality goals.

Photo Credit: Joakim Honkasalo

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Further Reading: Finland’s MuniFin Issues $180 Million Green Bond to Support Sustainable Public Projects

Spain-Portugal blackout: experts and power companies weigh in on potential cause

Disinformation regarding renewable power generation is spreading after Spain and Portugal’s massive blackout on Monday. While the full investigation of the blackout’s cause is still underway, experts have weighed in, all echoing the sentiment that the Iberian peninsula’s reliance on renewables is not to blame for the sudden outage. Governments and power companies do have something to learn from the crisis: Investments in power storage and grid upgrades must go hand in hand with the expansion of renewable generation. Spanish Prime Minister Pedro Sánchez stated in a press conference that “those linking the blackout to the lack of nuclear power are either lying or demonstrating their ignorance.” Fundacion Renovables claims that the large percentage of renewable energy in the grid enabled the nation to react and recover more quickly, thanks to the flexibility of hydropower systems. Businesses can track the latest updates in green investments and renewable energy using ESG tools.

Photo Credit: natsuki

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Further reading: Don’t blame renewables for Spain’s power outage

Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: Wikimedia Commons