Tag Archives: ESG

ESG Investing and Clean Energy Project Finance

ESG Investing and Clean Energy Project Finance

More than 25% of investors are considering or actively engaged in responsible and sustainable investing, according to a report from deVere Group. deVere, a global financial advisory and fintech firm, states that “since the beginning of May, 26% of clients around the world are eyeing exposure to or are now part of the environmental, social and governance (ESG) “megatrend”.”

The impetus for the increased interest in ESG, unsurprisingly, is the COVID-19 pandemic, which, according to the report, has “shifted the values of our society.” In addition, companies that have performed better through the health crisis generally have been those that adhere to ESG principles, including diversity, transparency and social responsibility.

The result is huge ESG stock and bond fund inflows, a trend that is expected to continue. deVere CEO Nigel Green noted, “as millennials, who are statistically more likely to seek responsible investment options, become the major beneficiaries of the largest intergenerational transfer of wealth – an estimated $30tn in the next few years – we can expect both retail and institutional investors to continue to pile into ESG.”

What does the ESG “megatrend” mean for renewables, and clean energy project finance in particular? While utility-scale energy project finance is familiar territory to institutional investors, we at Windmill Capital have seen astute investors beginning to prioritize the C&I segment. Buzzwords attracting investor attention today include renewable, distributed energy and circular economy, 

In addition, clean energy project finance represents one of the few “pure” ESG strategies, as 100% of the investment furthers environmental and social goals. There are a number of resources available today to “certify” projects or financing as “green.” These certifications are relatively inexpensive and will become industry standard for clean energy project financing.

As a result, we see the C&I clean project finance market evolving rapidly over the coming months and years. In particular, we expect:

  • Direct investments will become a focus for investors building in ESG criteria.
  • ESG funds will add more direct investments to marketable securities portfolios to increase market differentiation.
  • Certification will facilitate identification of investments that align with ESG goals, further increasing demand for these investments.

The fact remains, however, that fixed costs reduce the attractiveness of small investments. Windmill Capital utilizes a proprietary origination network and leverages technology to streamline the underwriting process to minimize transaction expenses. In addition, we’re constantly educating new and existing investors about market trends and transaction opportunities.

Cogeneration Up Close

Cogeneration Up Close

Sometimes we get so caught up in the details of clean energy project finance and investment that we take for granted how cool these systems really are. But we ran into a website recently that reminded us what we’re missing when we’re “down in the weeds.” www.untappedcities.com is a site that “unearths New York City’s most unique… Continue Reading

U.S. Solar 2 Million Strong

U.S. Solar 2 Million Strong

The Solar Energy Industries Association (SEIA) announced last week that U.S. solar installations reached the two million mark. U.S. solar reached this significant milestone just three years after surpassing the one million installation threshold in 2015. Forecasts predict three million U.S. solar installations by 2021 and four million by 2023. Windmill Capital Management sees the… Continue Reading

Direct Investment in Renewable Energy for Family Offices

Direct Investment in Renewable Energy for Family Offices

Investors are allocating a greater share of capital to socially responsible and environmental, social and governance (ESG) conscious strategies. A January 2018 Harvard Business Review article noted that at the beginning of 2018, more than $11.6 trillion were invested in ESG investment strategies. That equates to $1 of every $4 invested in the United States.… Continue Reading

Overcoming Hurdles for Continued Growth in ESG Investing

Overcoming Hurdles for Continued Growth in ESG Investing

Sustainable investing has gained significant momentum as a critical investor consideration. Growth of ESG has corresponded to an increase in investor ESG awareness, greater corporate reporting of non-financial ESG measures, and demonstrated outperformance from ESG strategies. According to a recent report from BNY Melon, the continued growth of ESG is dependent on investors, corporations and… Continue Reading

Earth Month Look at Coral Reefs

Earth Month Look at Coral Reefs

Today as we celebrate Earth Month we’re taking a bit of a different turn to look at coral reefs. Coral reefs are located in more than 100 countries and cover close to 110,000 square miles of the earth’s surface. In spite of their relative abundance, coral reefs aren’t typically top of mind in the fight… Continue Reading

Alternative and Renewable Energy for the Cannabis Industry

Alternative and Renewable Energy for the Cannabis Industry

Windmill Capital Management does not have a direct stake in the legal cannabis industry.  We do, however, see that cannabis and renewable energy have quite a bit in common.  Notably, both industries are relatively new to institutional investors and are subject to broad misinformation.  We also believe that both cannabis and alternative energy are important… Continue Reading

Windmill Capital Management Celebrates Earth Month

Windmill Capital Management Celebrates Earth Month

Windmill Capital Management is happy to celebrate Earth Month this April. The Earth Day Network theme for 2019 is “Protect our Species.” 2019 is the 49th celebration of Earth Month, which started in 1950 when millions of people took to the streets to protest 150 years of industrial development. Earth Day, celebrated this year on… Continue Reading

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