The investment aims to support the company’s business development and expansion as the country bolsters efforts for waste management and pollution reduction
DWS, one of the world's leading asset managers, announced today that a sustainable investments private equity fund advised by the firm has invested $23 million USD in International Environment Group Limited (IEG). IEG is a leading environmental service provider focusing on waste treatment and waste management. The company has supplied environmental equipment and services in more than 30 countries over the past 20 years, and is now applying its expertise and experience in China, where the waste management market is projected to reach $82.42B USD by 2025, up from $60.53B in 2019(a).
"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."
IEG has unique expertise in providing comprehensive solutions to treating and recycling waste. IEG designs various types of waste treatment plants that are compact and cost effective, and is able to remotely monitor and manage operations to decontaminate sewage and landfill leachate.
With the recent pandemic catalyzing sustainable developments, and in support of their business development and expansion in China, the funding from DWS is growth capital to help IEG capitalize on the growth of the waste treatment business. DWS’s investment is expected to have measurable ESG impacts, reducing toxic waste to the environment. Globally, IEG’s equipment contributes to the humanitarian aid cause by helping to mitigate water and soil contamination in peacekeeping missions, refugee camps and other developing communities.
"IEG is proud to partner with DWS as we expand into China adopting our global expertise to develop a more sustainable waste management infrastructure in the region," said Henry Yu, CEO of IEG, and Vice Chairman of China Chamber of International Commerce and Executive Director of China Sustainable Development Research Association. "As the waste management sector is projected to increase to more than $82B USD over the next five years, we see significant upside and room for growth for our business."
DWS’s Sustainable Investments team targets investments in green environmental businesses that are focusing on delivering cleaner energy and water, reducing environmental waste and building smart cities across China. The team focuses on working with companies that are seeking growth capital to scale and expand their business for greater environmental impact.
With a more than twenty-year history of direct investments in financial inclusion, agriculture, clean energy and technology, and climate change mitigation/adaptation globally, DWS’s Sustainable Investments team seeks to create strategies with attractive market rate financial returns while promoting measurable social and/or environmental outcomes(b) for investors. The global team spans four continents and its footprint reflects the deployment of capital in more than sixty countries.
For more information about DWS’s sustainable investments, visit: https://www.dws.com/capabilities/alternatives/sustainable-investments/.
About International Environment Group Limited (IEG)
IEG is a leading environmental service provider focusing on waste treatment and management. IEG has developed comprehensive business coverage and waste management solutions for recovering waste and converting into new resources for reuse. Focusing on technology development, manufacturing and services, IEG builds key competencies resulting in winning many contracts from industry leaders, including high-value contracts from international organizations, including contracts in China and more than 30 other countries.
With their experienced management team, IEG is looking to seize opportunities and strives to emerge as a leader in environment management sector, and will work together with industries and communities for a clean and sustainable world.
About DWS Group
DWS Group (DWS) is one of the world's leading asset managers with USD $772bn of assets under management (as of 31 March 2020). Building on more than 60 years of experience and a reputation for excellence in Germany, and across Europe, the Americas and Asia, DWS has come to be recognized by clients globally as a trusted source for integrated investment solutions, stability and innovation across a full spectrum of investment disciplines.
We offer individuals and institutions access to our strong investment capabilities across all major asset classes and solutions aligned to growth trends. Our diverse expertise in Active, Passive and Alternatives asset management – as well as our deep environmental, social and governance focus – complement each other when creating targeted solutions for our clients. Our expertise and on-the-ground-knowledge of our economists, research analysts and investment professionals are brought together in one consistent global CIO View, which guides our investment approach strategically.
DWS wants to innovate and shape the future of investing: with approximately 3,500 employees in offices all over the world, we are local while being one global team. We are investors – entrusted to build the best foundation for our clients’ future.
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(a) Source: Mordor Intelligence – China Waste Management Market Presentation (2020). Forecasts are based on assumptions, estimates, views and hypothetical models or analysis, which might prove inaccurate or incorrect
(b) No assurance can be given that objectives will be achieved