SPACs target more ESG companies

Data from Nomura Greentech shows US special purpose acquisition companies are increasingly targeting companies with higher ESG standards.

US IPOs by SPACs with an ESG focus was 49 in the first four months of 2021 from a total of 306, the data showed. That compares with 40 in the second half of 2020. 32 SPAC mergers with an ESG focus have been listed so far in 2021 compared to 31 in all of 2020.

Jeff McDermott, Head of Nomura Greentech, says the move is driven by lower costs, customer demand for sustainable products, and strong policy support. “With over 50 active ESG SPACs currently seeking targets, and more still to price this year, we believe investors will continue to fund high growth ESG companies,” he added.