The United Nations Joint Staff Pension Fund is a defined-benefit fund established by the General Assembly of the United Nations in 1948, entrusted to provide retirement and related benefits to more than 205,000 staff and retirees of the United Nations and 23 other member organisations. The Office of Investment Management (OIM) manages a US$63 billion multi-asset class, global investment portfolio, 85 per cent of which is actively managed in-house. The fund invests globally in more than 100 countries and 27 currencies, and in multiple asset classes: global equities, global fixed income, private equity, real estate, infrastructure, timber, and commodities.
OIM began the journey towards sustainable investing decades ago by restricting investments in tobacco and armaments, reflecting the values of the United Nations. The office became a signatory to the Principles for Responsible Investment (PRI) in 2006. This was followed in 2008 by investing in the first green bonds, issued by the World Bank, and being the catalyst investor in low carbon exchange-traded funds in 2014.
MarketWatch: Oil major BP PLC’s board said Friday it will back a shareholder resolution at its annual meeting this year that would force the company to align its business strategy with the goals of the Paris Agreement on climate change.
BusinessGreen: In some quarters 2019 has already been labelled the 'year of the vegan'. From vegan sausage rolls to climate-friendly diets, barely a day has gone by without some news of how meat-light meals are better for consumer health and the planet.
IPE: CPPIB is selling €1bn in 10-year fixed-rate notes to enable it to invest further in eligible assets such as renewables, water and real estate projects, as well as diversify the fund’s investor base.
IFU: In June 2018, IFU signed an agreement with PKA, PensionDanmark, PFA, ATP, JØP/DIP, PenSam and Navest to establish the Danish SDG Investment Fund, which will support the UN Sustainable Development Goals through commercial investments. The total capital commitment in the first closing was DKK 4.1bn. In a second and final closing, commitments have been obtained from three additional investors: SEB Life & Pension, Secure SDG Fund and Chr. Augustinus Fabrikker Akts. With these three investors, the total commitment reached DKK 4.85bn, which is very close to the original target of DKK 5bn.
ShareAction: ShareAction’s new report, titled “Sleeping Giants – Are bond investors ready to act on climate change?” is based on 22 in-depth interviews with asset managers, asset owners and other corporate bond market professionals to explore their attitudes to engaging with issuers about climate change.
IPE: At the beginning of 2019, CBRE Global Investors announced it had held a first close for its debut social and affordable housing fund in the UK. The CBRE UK Affordable Housing Fund raised about £250m (€220m) from 13 UK institutional investors, The Big Society Capital.
Guru Focus: Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, today announced the Morningstar Low Carbon Risk Index Family, a new group of indexes that provides diversified exposure to equities across regions and emphasizes companies aligned with the transition to a low-carbon economy. Powered by Sustainalytics' Carbon Risk Ratings, the indexes are created through an optimization process that targets low portfolio-level carbon risk and fossil fuel exposure.
CityWire Selector: The new strategy will have an investment universe of 700 stocks across all geographies and sectors, made of global equities that best manage climate-related risks.
Founded in 2012, Mirova is an affiliate of Natixis Investment Management, one of the biggest asset management companies in Europe. Mirova's investment approach is defined by the Sustainable Development Goals framework, as it enables to capture the contribution of an asset to environmental and social sustainability. As of September 30th, 2018, Mirova had USD 11.8 billion of assets under management.
Mirova only invests in countries and firms that contribute to the SDGs. To assess a security's alignment, the organization conducts bottom-up research involving security-level analysis of risk and opportunities, a life-cycle analysis to identify where the impact occurs, and finally an issue-level analysis to understand how specific themes affect the securities. Mirova seeks alignment with the Paris Agreement targets by monitoring the carbon footprint of the equities and bonds they hold in their portfolios. Beyond their investment choices, their approach involves a voting policy aligned to their values, which are accompanied by engagement procedures with issuers and public authorities.