Stockholm (NordSIP) – The NN (L) Euro Green Bond fund, the fund issued by NN Investment Partners (NN IP), has been awarded with the LuxFLAG Climate Finance Label, a label that indicates that a fund’s investments help to finance climate change initiatives and which emphasises a company’s strong commitment to responsible investing. The NN (L) Euro Green Bond fund recently reached € 100 million in AUM, proving to be one of the fastest growing green bonds at the global level over the past year, having launched in February 2016 with just €20 million in AUM.
NN IP’s Euro Green Bond strategy primarily invests in a portfolio of investment grade green bonds that can be issued in different currencies. A green bond is an instrument where proceeds are applied to financing or refinancing partly or fully projects deemed to be beneficial to the environment. NN IP assesses whether selected bonds adhere to the “Green Bond Principles” formulated by the International Capital Market Association and the Climate Bond Initiative. Issuers are screened using exclusionary screening.
“The LuxFlag Climate Finance label gives investors external assurance that their investments are used for green projects with a high positive impact on the environment,” Bram Bos, the lead portfolio manager of Green Binds with NN Investment Partners, said in a press release. “Luxflag will verify the fund once a year. We aim to ensure that the investments are truly ‘green’ by conducting our own and independent assessment based on our own NN IP Green Bond framework. We also offer our clients detailed impact reporting. Furthermore, the fund is the first green bond fund to link investments to United Nations Sustainable Development Goals. Being granted the LuxFLAG Climate Finance Label serves as confirmation of our investments contributing positively to the environment.”
The NN IP Green Bond fund has never had any non-green bond holdings, always having had 100% green bonds in its portfolio. It therefore passed with flying colours the award of the LuxFLAG Climate Finance Label, which is contingent upon a fund’s investments being in accordance with the adaptation and climate change mitigation for at least 75% of its total assets, where the ulterior 25% are retained in investments such as cash or liquid assets that have no negative effect on the environment.
“The LuxFLAG Climate Finance Label is recognised for high standards and rigorous assessment of applicant investment fund,” added Annemarie Arens, General Manager of LuxFLAG. “We are pleased to announce that NN IP’s green bond fund meets the eligibility criteria of the Climate Finance Label and therefore have been awarded with the label starting from 01 April 2017.”
NN IP’s Green Bond fund is, so far, the first and only LuxFLAG Climate Finance certified green bond fund.
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