Analysis

Will sustainable investing be the theme to ride in SPACs ?

, Impact alpha

According to research conducted by Sustainable Research and Analysis LLC that was compiled from SPAC prospectus documents, the SPAC universe consists of 533 listed entities with a combined deal value of $171 billion. Of these, 163 SPACs, or 31% outstanding SPACs as of mid-March 2021 based on deal value, pursue business strategies that are aligned either partially or entirely with sustainable investing strategies that fall into three broad categories that include social and environmental themes, the achievement of impact as well as the integration of ESG in the investment process. These are further subdivided into the following eight sub-categories: Health, ESG integration, new energy, education, social infrastructure, education/health, inclusive economy and impact (UN SDG-Focused).  

Within these eight sustainable investing-labelled categories, the largest three categories account for 91.9% of deal value. Within this segment, the health sector-oriented SPACs dominate, with a total of 79 SPACs and $18.6 billion in deal value, followed by ESG integration that has been adopted by 42 SPACs and new energy that make up 27 SPACs and $8.1 billion in deal value. 

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