Union Launches SDG Fund

on

Stockholm (NordSIP) – Frankfurth-based asset manager Union Investment, the investment arm of the German DZ Bank Group, has launched the UniInstitutional SDG Equities fund. The fund, which is aimed at institutional investors, invests in equities of companies globally whose activities correspond to the UN Sustainable Development Goals.

17 SDGs were adopted by the member states of the United Nations in 2015 as part of the 2030 Agenda. These include areas such as sustainable growth, sustainable urban development, sustainable management of natural resources, health care, education, poverty reduction, gender equality and innovation.

- Promotion -

Jörg Schneider
Portfolio Manager
Union Investments

Only companies in which over 20 per cent of consolidated revenue is linked to the SDGs are eligible for consideration in the UniInstitutional SDG Equities fund’s investment universe, whereas the average SDG quota of companies in the fund must exceed 50 per cent. “At least every second euro in the und must have an effect in line with the UN sustainability goals,” said portfolio manager Jörg Schneider. “This ensures that at least half of the fund’s assets are used to pursue the UN SDG’s.”

The fund screens stocks from a universe of 1200 companies with a concentrated portfolio, including roughly 60 holdings from sectors such as water management, healthcare, renewable energy and sustainable transport. A three-stage research process comprised of sustainability analysis, fundamental analysis and risk adjustment determines the composition of the portfolio.

“We invest in companies with sustainable business models that promise high growth rates in the long term. The objective is attractive returns combined with positive ecological and social contributions,” Schneider said.

Image © Rawpixel.com – Shutterstock

 

 

 

Partner message

In the midst of a global pandemic, Apple announced one of the corporate world’s most ambitious environmental blueprints – to reduce the climate impact of every Apple device to net zero by 2030. The plan involves cutting 75 per cent of the company’s existing carbon footprint, not only for its own business but also across the manufacturing supply chain and product life cycle.

Learn more

NordSIP Insights

Most read this week

Should SBI Green Bond Investors be Suspicious?

Stockholm (NordSIP) - The State Bank of India is reported to be preparing to loan INR50 billion (US$670 million) to Adani for investment in...