A sustainable investments private equity fund advised by German asset manager, DWS, has invested US$23 million in International Environment Group Limited (IEG).
The funding is to enable IEG to take advantage of the growth of the waste treatment business in China, where the waste management sector is expected to total just over $82 billion by 2025 (from just over $60.5 billion in 2019).
“The Covid-19 pandemic has amplified the importance of reducing pollution to the environment in China and propelled ESG trends and opportunities for investors” said Priscilla Lu, head of sustainable investments for Asia Pacific at DWS, and a member of People’s Bank of China Green Finance Committee.
“This renewed government focus has led to advancing technology for improved waste management and sanitation systems. Our sustainable investments team is looking to help fuel this increased focus on environmental remediation, which is also strongly demanded by China’s growing middle class as they seek a higher quality of life and healthier communities,” added Lu.
In a statement, DWS said it expects the investment to have “measurable ESG impacts, reducing toxic waste to the environment.”
DWS manages $772 billion in assets globally (as of March 31, 2020).
© 2020 funds europe
