Just Climate Exceeds Target, Raises $1.5 Billion with Support from Microsoft’s Climate Innovation Fund
Just Climate, an asset manager focused on climate solutions, announced on Thursday that it has raised $1.5 billion for its inaugural fund, surpassing its original target of $1 billion. The strong demand from institutional clients, including Microsoft’s Climate Innovation Fund, contributed to the successful fundraising.
Established by Generation Investment Management, Just Climate aims to direct investments towards sectors that face significant challenges in reducing greenhouse gas emissions, such as cement, shipping, industrials, and land use.
Shaun Kingsbury, Chief Investment Officer of Just Climate, emphasized the importance of addressing emissions from hard-to-abate industries, which account for more than 50% of global emissions. He stated that radical and urgent changes are needed in the financial sector to achieve net-zero emissions by 2050.
The initial fund, Climate Assets Fund I, will primarily focus on supporting companies with proven technology in scaling their businesses to attract risk-averse investors. By providing investment support, Just Climate believes that transformational climate solutions can rapidly scale, achieve better financial performance, and gain widespread market adoption.
Several notable investors have backed the fund, including IMAS Foundation, Ireland Strategic Investment Fund, Harvard Management Company, California State Teachers’ Retirement System, and Colonial First State Investments.
The fund has already made initial investments in companies such as ABB E-mobility, an electric vehicle charging company, H2 Green Steel, an industrial startup, and Meva Energy, a Swedish gasification technology firm.
Clara Barby, Senior Partner at Just Climate, highlighted their approach of identifying solutions with significant climate impact and directing institutional capital towards them to generate attractive risk-adjusted returns.
The successful fundraising by Just Climate, with support from Microsoft’s Climate Innovation Fund and other investors, reinforces the importance of investing in climate solutions to address the global climate crisis and accelerate the transition to a sustainable future.