Bank of America and Goldman Sachs just poured money into an environmental markets platform.
Sustainability continues to be a hot topic for regulators and corporate boards alike. Financial firms have a vested interest in supporting partners focused on building robust, transparent infrastructure for environmental commodities, so they can best support their clients’ ESG goals.
Bank of America and Goldman Sachs joined a $125 million investment into Xpansiv, which provides market infrastructure and data platforms for carbon credits, renewable energy certificates, and valuing commodities based on their environmental impact.
Large financial services firms ultimately want to help their clients achieve their ESG goals, which requires mature and robust market infrastructure for environmental commodities. Xpansiv aims to transform a still opaque and fragmented ecosystem with transparency and centralization. By investing in Xpansiv, BofA and Goldman are helping it build out that vision and its platforms.
As one Bank of America exec put it, the firm invested in Xpansiv to “support innovation” in voluntary carbon trading and environmental commodities:
“Sustainability is part of discussions in boardrooms and with investors,” president Jim DeMare said. “Robust technology, reliable data, and accessible spot markets are crucial to promote liquidity and scale growth” in these “evolving markets.”