Clean Energy Initiatives, Index Funds and Alternative Awards
In an interview with Amundi’s Frédéric Hoogveld, Head of Investment Specialists, Index and Smart Beta, we found about his firm’s history with decarbonisation strategies which were developed with AP4, among others. He also tells us about how he works with clients to help them define their needs.
In Sweden, Nordea Life & Pensions announced it will reallocate SEK 7 billion to sustainable assets within 100 days, as part of its sponsorship of the Climb for Climate initiative, founded by Nordea Investment solutions & Advisory Centre Head of Strategy & Insight Peter Sandahl. Elsewhere, International organisations, including the EIB, IEA, OECD, UNDP and the World Bank, issued a joint communiqué to support a new Danish Clean Energy Ministerial initiative, aimed at increasing investment in green energy and financing at the global level. The initiative was launched at the Clean Energy Investment Forum held in Copenhagen this week, a part of Nordic Clean Energy Week, which also included a Mission Innovation to accelerate clean energy in Malmö.
In other news out of Denmark, Copenhagen Infrastructure Partners is celebrating a bumper year so far. The green energy infrastructure investment fund secured rights to construct offshore wind farms in Taiwan last month, on the back of closing its new fund, Copenhagen Infrastructure III to the tune of €3.5 billion. Trade union-backed pension funds in Denmark and elsewhere are the main allocators to the fund, reflecting the enthusiasm of clients in backing sustainable projects. Finally, Pension Danmark received the Investment & Pensions Europe award for Best Alternatives Strategy at its Real Estate Global Awards in Milan last week for its “strategic dedication to CSR and sustainability in its role as a property investor. A favourite at IPE (it won European Pension Fund of the Year last year), the first-time recipient of this prize was distinguished by its superior alternative investments in niche housing markets and uniquely tailored real estate programme launched in 2017, director for real estate investment Marius Møller told NordSIP (NordSIP)
Heard on E-Street
The European Commission released the first legislative package under its Action Plan for Financing Sustainable Growth, which includes a unified EU financial taxonomy, investors’ duties and disclosures, low-carbon benchmarks and better sustainability advice to clients. The package is pending review from the European Parliament and Council, with legislation scheduled to be adopted from late 2019 (UNPRI). Socially conscious investment firms such as Domini Funds and Eaton Vance are selling or rethinking their Facebook holdings, dissatisfied with its moves to strengthen personal data protection and online safety after the Cambridge Analytica scandal. Others may follow suit (Reuters) (Meanwhile, Mark Zuckerberg got off scott free without any serious accountability at a hearing before the European Parliament – as usual (The Independent)). Vestas, the global leader in wind energy, is partnering with Swedish utility Vattenfall and Danish pension fund PKA for a €350 million 353 MW wind energy project in Sweden. Vestas will be a 40% shareholder, with PKA and Vattenfall owning 30% project equity each (realtid.se). Finally, Investments from the Nordics in Sri Lanka have grown by 54% annually (compounded) since 2013, according to the Colombo Stock Exchange. Investments are largely coming from ESG funds that invest in and reward good company behaviour (Sunday Times).
Question of the Week
What is a Nordic Swan?
Famous Last Words
“The National Climate Assessment that includes NASA, and it includes the Department of Energy and it includes NOAA, has clearly stated it is extremely likely – is the language they use – that human activity is the dominant cause of global warming. I have no reason to doubt the science that comes from that” – NASA Administrator Jim Bridenstine, in what would be an unremarkable statement if the NASA head hadn’t waffled on the issue during U.S. confirmation hearings last year. “I think it’s essential for one of the premier science agencies of the federal for you to abide by the science”, said Hawaii Senator Brian Schatz in praising Bridenstine for his ‘conversion’ (CNN).
At least we don’t need to worry about asteroids then… Happy weekend,
Your NordSIP team
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