1 big thing: KKR enters ESG data scrum

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2. The BFD: An EV mystery

A photograph of two Ford E-Transit electric vans, parked in a dealer's lot.

3. Expert Voices: Emerald Technology Ventures' Gina Domanig

Photo Illustration of Gina Domanig of Emerald Technology Ventures

4. 🌡️ Temperature check

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5. Hot deals

6. It's personnel

7. Thread o' the day: Buy/Sell/Hold

A screenshot of a tweet from Jigar Shah, director of the Energy Department's Loan Programs Office.

We made it through another week. Let's get right to it and on to the weekend. 

💐 This is Megan's first weekend at home in a while, so she is looking forward to hitting the farmers market and estate sales for a quiet weekend in town.

🎂 Alan and family are celebrating the baby's first birthday this weekend. He hears it only gets faster. 

Thanks for reading Climate Deals! Please share with your friends, family and data analysts.

Climate Deals

1 big thing: Mineral prices impair project costs

2. The BFD: Fault lines appear around ESG ratings

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3. EVs are still all about Tesla 

4. Filings roundup

5. 🌡️ Temperature check

Illustration of three emojis: a thermometer, a hot face, and a cold face.

6. Hot deals

7. It's personnel

Welcome to another week at Climate Deals. Let's get to it!

🍿 Megan had the house and the dogs to herself this weekend and may have overindulged in HBO Max originals. All fully justified in the name of self-care, right?

🥳 Alan and family celebrated both his wife Terry's birthday and the baby's first birthday this weekend. Goal this week: Finish all the cake that's in the fridge. (Let's not even consider the entire pizza that's in the freezer.)

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1 big thing: Alt fuels maker Amogy raises $46M

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2: The BFD: $35M Series B for supply chain data

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3. What to make of $198M for green hydrogen

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Happy Thursday, climate friends. Let's get to it:

☔ Monsoon season arrived early in Southern California, so Megan is off the hook for watering the plants for the next few days.

🌭 Alan went to Fenway last night — his first game in five years. He'd forgotten how great a live ballgame can be.

Thanks for reading Climate Deals! Please share with your friends, family and supply chain enthusiasts.

1 big thing: EV financing startup raises $18M

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2. The BFD: Intersect gets $750M growth financing

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3. Plant-based dairy Eclipse Foods raises $40M

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4. Circulor nets $25M for supply-chain tracking

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Illustration of an earth in a roast pan with a meat thermometer.

It's deals-palooza Tuesday here at Climate Deals, so let's jump right in.

🍅 Megan's weekend farmers market haul was a major success so she's been working through some favorite summer recipes. Last night was spaghetti squash with summer marinara sauce, recipe courtesy of Chrissy Teigen. 

🍽️ Another upside to having family visit: leftovers. Linguine with baby clams for lunch, grilled steak(!) with a side of roasted potatoes and grilled corn for dinner, three-layer cheesecake for dessert. Alan will be working out today. 

Thanks for reading Climate Deals! Please share with your friends, family and lactose intolerant acquaintances.

1 big thing: Frontier makes first carbon-capture commitments

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2. The BFD: CleanCapital acquires BQ Energy

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3. EVs have more problems than traditional cars

Illustration of a gas pump facing off against an electric vehicle plug.

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7. Quote o' the day: the travel season from hell

🐪 Happy Wednesday, climate friends. Let's get to it.

Situational awareness: LG Energy Solution, the South Korean battery maker and supplier to Tesla and others, said it’s reassessing a $1.3 billion investment plan for a factory in Arizona, citing “unprecedented” economic conditions. Pro Rata has the details.

🏃🏻‍♀️ Megan is in the final stretch of training before her big hike in a few weeks. As much as she loves fitting in long runs every day, she's looking forward to a break in the second half of the summer.

📺 Alan and Terry finished "The Bear" on Hulu — incredible first season. Alan is now also deeply craving an Italian beef sandwich.

Thanks for reading Climate Deals! Please share with your friends, family and ESG consultants.

Circulor, a British startup that maps supply chains for greener production, raised $25 million in Series B funding. 

Why it matters: Most companies don't have the slightest clue where their raw materials come from. 

As governments from the U.S. to the EU ramp up standards for everything from sustainability to forced labor, supply-chain tracking has become one of the few areas still drawing strong climate-tech investment in a down market. 

Details: The Westly Group, a Silicon Valley venture fund, led the round.

Other investors include HG Ventures, Volvo Cars Technology Fund, Systemiq Capital, Jaguar Land Rover’s InMotion Ventures, Future Positive Capital, BHP Ventures, Salesforce Ventures and 24Haymarket.

What's happening: Circulor has seen big buy-in from major automakers and the German government, which is developing new battery standards. 

The company in April was named the "implementer" of the German government's effort to develop technical standards for EV batteries. 

It helps track anything from sustainable leather seats in new Jaguars to plastics sourced from TotalEnergies.

Zoom out: If this all sounds vaguely familiar, another tracking startup, ESG Book,  announced its own eight-figure Series B last week. 

Supply chains are enormously complex, and a minuscule fraction of companies know where their products' materials come from. 

"Most companies think they know their supply chain," Ellen Carey, Circulor's vice president for global policy and public affairs, tells Axios. "I would say they don’t get half of it right."

That lack of insight has made supply-chain tracking among the few seemingly reliable growth areas in climate tech.

Circulor raises $25M Series B for green supply chain tracking

Sustainability

Circulor, a British startup that maps supply chains for greener production, raised $25 million in Series B funding. Why it matters: Most companies <a class="gtmContentClick" data-vars-link-text="don&#x27;t have the slightest clue" data-vars-click-url="https://www.mckinsey.com/business-functions/operations/our-insights/future-proofing-the-supply-chain" data-vars-content-id="4cf6e583-0eeb-44a2-89d2-02879fe14a45" data-vars-headline="Circulor raises $25M Series B for green supply chain tracking" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.mckinsey.com/business-functions/operations/our-insights/future-proofing-the-supply-chain" target="_blank">don&#x27;t have the slightest clue</a> where their raw materials come from.

This week we're talking with Gina Domanig, managing partner of Emerald Technology Ventures, a clean-energy and climate-tech VC based in Zurich.

Why she matters: Domanig leads a firm with about €1 billion under management and under advisory.

Emerald last month debuted a €250 million (~$264 million) fund focused on institutional investors, an expansion from its traditi0nal focus on corporates. In April, it announced another €200 million (~$217 million) venture fund focused specifically on the sustainable packaging supply chain. 

What in your view was the big story in clean energy/climate tech this week? 

Market failures — such as Australia’s two weeks ago, where market incentives were not sufficient to ensure supply, and lack of maintenance highlighted issues with theoretical capacity, leading to better market planning.

For example: Germany now mandating that each of its regions allocate 2% of land to wind. 

Energy security and the availability of capacity are demanding better planning. Resilience will be key.

By contrast, what’s going under-noticed or under-covered?

Long-duration storage and flexibility as part of the energy security equation.

In three-ish words, what change would you make to climate-tech investment?

Aligning market incentives to enable investment.

Gina Domanig on the power of market failure

Domanig is managing partner of Emerald Technology Ventures.

Photo Illustration: Natalie Peeples/Axios. Photo: courtesy of Emerald Technology Ventures

Expert voices

This week we&#x27;re talking with Gina Domanig, managing partner of Emerald Technology Ventures, a clean-energy and climate-tech VC based in Zurich.Why she matters: Domanig leads a firm with about €1 billion under management and under advisory.<ul><li>Emerald last month <a class="gtmContentClick" data-vars-link-text="debuted" data-vars-click-url="https://www.axios.com/pro/climate-deals/2022/05/11/emerald-technology-ventures-launching-250m-fund" data-vars-content-id="7a89d8e7-3c2d-4cdd-b36c-1a075f1b3d4f" data-vars-headline="Gina Domanig on the power of market failure" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/climate-deals/2022/05/11/emerald-technology-ventures-launching-250m-fund" target="_self">debuted</a> a €250 million (~$264 million) fund focused on institutional investors, an expansion from its traditi0nal focus on corporates. In April, it <a class="gtmContentClick" data-vars-link-text="announced" data-vars-click-url="https://www.axios.com/pro/climate-deals/2022/04/13/emerald-technology-ventures-sustainable-packaging-fund" data-vars-content-id="7a89d8e7-3c2d-4cdd-b36c-1a075f1b3d4f" data-vars-headline="Gina Domanig on the power of market failure" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/climate-deals/2022/04/13/emerald-technology-ventures-sustainable-packaging-fund" target="_self">announced</a> another €200 million (~$217 million) venture fund focused specifically on the sustainable packaging supply chain. </li></ul>

ESG Book, one of the largest sustainability data-tracking sites, raised $35 million in Series B funding.

Why it matters: Only 2% of companies have visibility into their supply chains beyond their most direct suppliers, per a new McKinsey & Co. report.

Details: Energy Impact Partners led the round, with Meridiam and Allianz X also participating.

ESG Book rebranded last month from Arabesque S-Ray.

Clients include Citi, State Street and Siemens.

What they're saying: "Sustainability is a mega-trend that persists through different economic cycles," CEO Daniel Klier tells Axios. "People know this is driving big investments at the moment."

ESG Book raises $35 million for supply chain data

Few companies have deep insights into their own supply chains.

ESG Book, one of the largest sustainability data-tracking sites, raised $35 million in Series B funding.Why it matters: Only 2% of companies have visibility into their supply chains beyond their most direct suppliers, per a new McKinsey &amp; Co. <a class="gtmContentClick" data-vars-link-text="report" data-vars-click-url="https://www.mckinsey.com/business-functions/operations/our-insights/future-proofing-the-supply-chain" data-vars-content-id="a863da09-f9c7-4b8d-a54e-48be03a3d810" data-vars-headline="ESG Book raises $35 million for supply chain data" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.mckinsey.com/business-functions/operations/our-insights/future-proofing-the-supply-chain" target="_blank">report</a>.

New EVs have nearly 40%(!) more problems than internal combustion cars and trucks, according to J.D. Power's latest annual survey on initial vehicle quality.

Why it matters: EVs' entire value-proposition is that they're cheaper in the long run and easier to maintain. 

By the numbers: Battery electric vehicles experienced 240 problems per 100 vehicles in the 2022 model year.

Combustion vehicles: 175 problems per 100 vehicles.

Plug-in hybrids fared no better, with 239 problems per 100 vehicles. 

Where's Elon?: The battery electric figure excludes Tesla because of the enormous volume of Teslas sold compared to relatively new offerings from legacy automakers. 

Yes, but: Tesla models averaged 226 problems per 100 vehicles. Ouch.

Reality check: These figures, of course, are for "initial quality." The core argument about EVs' long-term quality and reliability may still stand. 

At the top of the J.D. Power survey on initial quality: Buick, Dodge and Chevrolet — makers not exactly known for long-term dependability. 

By contrast, Lexus placed fifth, Toyota 14th. 

Bottom line: The average cost of an EV has climbed to $54,000 — $10,000 more than the average combustion car. 

We don't envy the folks shelling out that amount or more, then finding themselves back at the shop for service within a year. 

💭 Our thought bubble: Building a car is hard, and most non-Tesla EVs are new to the market — so some of this is likely growing pains. 

But while the heavy emphasis is "initial quality," short of EVs spontaneously combusting, it's hard to imagine a worse headline for the industry, especially as EVs keep fighting consumer skepticism and recent price hikes.

EVs have more problems than traditional cars

Electric vehicles reported almost 40% more issues for 2022.

Electric vehicles

New EVs have nearly 40%(!) more problems than internal combustion cars and trucks, according to J.D. Power&#x27;s latest annual survey on <a class="gtmContentClick" data-vars-link-text="initial vehicle quality" data-vars-click-url="https://www.jdpower.com/business/press-releases/2022-us-initial-quality-study-iqs" data-vars-content-id="d2a8af5e-9f8a-491a-9df6-5f8bc5c3bdb4" data-vars-headline="EVs have more problems than traditional cars" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.jdpower.com/business/press-releases/2022-us-initial-quality-study-iqs" target="_blank">initial vehicle quality</a>.Why it matters: EVs&#x27; entire value-proposition is that they&#x27;re cheaper in the long run and easier to maintain.

Alan's father and brother, plumbing and heating contractors in New York City, were having the hardest time finding new work vans. So they opted for the only kind available: an EV.

Why it matters: The wait time to buy a traditional Ford Transit cargo van is weeks or even longer, New York-area Ford dealers tell Alan. But handfuls of the electric version, the E-Transit, are available to anyone who walks in. 

Backstory: Alan's brother and their father spent afternoons literally driving through dealers' parking lots — Chevy, Ford, Mercedes — to spot new cargo vans.

“What they have online is not what they have on the lot. And we'd try to call them, but it's miserable," Alan's brother says. 

Each internal-combustion van they spotted was spoken for. But one vehicle that was consistently available at multiple dealers: the Ford E-Transit. 

What's happening: Supply chain disruptions, and demand for e-commerce, have made cargo vans scarce. 

"Regular transit vans will be a long time," one dealer in New Jersey tells Alan. 

But not E-Transits — at least for now. "We have four," the dealer says.

The intrigue: From Ford's own data, finding an E-Transit would seem difficult.

The company in January reported more than 10,000 orders for the E-Transit, and two months later had recorded sales of just 528 of the vehicles. (Update:  Ford on Friday provided updated sales figures for its E-Transit van: It’s sold 2,449 through May, up from 528 in March.)

Bottom line: The anecdotes could be mere anomaly. If nothing else, they're the latest reminder that national data can differ sharply from regional, day-to-day realities.

With Ford aiming to move its EV sales entirely online, these discrepancies with dealers may be the very thing the automaker is hoping to eliminate. 

An EV mystery

The van should be impossible find. It's not.

A photo of two Ford E-Transit electric vans, parked in a dealer's lot.

Two Ford E-Transit vans sit in a dealer's lot in New Jersey.  Photo: by Jordan Neuhauser.

Alan&#x27;s father and brother, plumbing and heating contractors in New York City, were having the hardest time finding new work vans. So they opted for the only kind available: an EV.Why it matters: The wait time to buy a traditional Ford Transit cargo van is weeks or even longer, New York-area Ford dealers tell Alan. But handfuls of the electric version, the E-Transit, are available to anyone who walks in.

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Stories

EVs have more problems than traditional cars

Circulor raises $25M Series B for green supply chain tracking

Gina Domanig on the power of market failure

An EV mystery

ESG Book raises $35 million for supply chain data

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Climate: KKR's ESG M.O.

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