Green Bonds, Rankings and a Political Festival
As they launched their brand new fund, NordSIP reached out to Daniel Karlgren and Cecilia Dahlstedt Myrgård, portfolio managers of the Captor Dahlia Green Bond fund, an actively managed fixed income fund from Sweden-based asset manager Captor with a focus on global green and sustainable bonds. The pair discuss their views on the green bond market and whether the premium green bonds can achieve is positive for the market or not. On the same vein, in Part 2 of last week’s NordSIP Green Bond Review, we relate arguments for and against the green bond market, based on a discussion we heard at Environmental Finance‘s Green Bond Conference.
Elsewhere, politicians and business leaders descended on the island of Gotland for the annual Almedalen festival ahead of a general election in Sweden on September 9th. The festival, which runs until July 8th, is the site for political wheeler dealing of the highest order, with Sweden’s political parties touting their election platforms, but sustainability has also dominated the conversation this year, with the festival providing the opportunity for numerous forums and seminars for sustainability education for business leaders and politicians. Meanwhile, Denmark’s government entered into an agreement with opposition parties to expand efforts on its energy plan to meet 2030 targets ahead of its own upcoming election, including building three new offshore wind farms, establishing a new pool for solar and wind energy, and the strengthening of energy and climate research.
Nordea launched a green loan programme, a new initiative that will provide loans to promote sustainable investments among SMEs across several industries. Internal and external evaluations of the environmental certifications of the company applying for a loan are made. A study conducted by Swedish insurance and pensions company SPP found that Swedish companies largely don’t impose sustainability requirements on their pension contracts and capital investments despite Sweden’s recent climate law, increased reporting requirements and the SDGs. Another report by one of Sweden’s most prominent financial advisors, Söderberg & Partners, lists the top 10 most sustainable funds available to Swedish private investors. Interestingly, only four managers really make the markt (NordSIP).
Heard on E-Street
“Most affluent investors would rather go to the dentist than invest in a company that hurts the environment,” Nuveen’s Third Annual Responsible Investing Survey finds, though only 22% of financial advisors offer RI options despite 80% of investors asking for them (Business Insider). Alvine Capital’s Q2 2018 newsletter suggests that “ESG [has found] its feet”, with an increasing number of investors seeking ideas and products that promote modern ethical standards without sacrificing performance. ESG trends provide investment opportunity and risk reduction, which means the sector should henceforth be considered mainstream. Peter Sandahl and Danny Uhlmann, the Climb for Climate climbers, have summited 35 4,000 meter peaks since the beginning of the initiative to raise awareness about the impact of climate change on alpine environments, to be completed by August 13th, leaving another 47 to go. Climb for Climate is being sponsored by Nordea Life & Pensions Sweden, which is in the process of reallocating SEK 7 billion to sustainable assets within the hundred days of the challenge (Rock and Ice).
Question of the Week
With U.S. President Donald Trump set to visit London next week, who in the Royal Family did he already manage to offend over a year ago?
Famous Last Words
“We often get the answer that they are fully booked and they are not able to participate. When we now award the prize in August when they do not have such fully booked schedules, we hope for a better presence… We do this [so] more of the nominees also have the opportunity to participate” – Sofia Hedström, Unit Manager at Jordens Vänner (Friends of the Earth), on why there will be no Greenwash Award in Almedalen this year. The nominees for “Sweden’s least attractive environmental award” are the Center Party, Vaxjö municipality and the Swedish Forest Initiative (Aktuell Hållbarhet).
Have an attractive weekend, with low carbon vacations on the horizon..
Your NordSIP team
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