Sustainable Fixed Income Strategies
Greetings from TBLI Stockholm, where NordSIP this week hosts a panel and presents its latest edition of NordSIP Insights focusing on sustainable fixed income strategies. With contributions from managers representing the Church of Sweden, Skandia, AP4, the CFA Society Sweden, Franklin Templeton, Cameron Hume, Pareto AM, M&G Investments, JAR Capital, the UN PRI and PIMCO, investor complaints that ESG is not being integrated sufficiently in fixed income are addressed. Make every little basis point count!
A group of Nordic CEOs announced a joint initiative to accelerate efforts to attain the UN SDGs at the 70th Nordic Council session. Equinor, Hydro, GSMA, Islandsbanki, Nokia, SAS, Swedbank, Telenor Group, Telia, Vestas and Yara International will consult with each other in the development of new business models to drive the transition to a 21st century economy aligned with ESG priorities. The initiative also creates a platform for the Prime Ministers of each Nordic country to engage directly with CEOs on how to move from sustainability as a ‘compliance exercise’ to purpose-oriented business. The EU Commission and Breakthrough Energy Ventures, founded by Microsoft founder Bill Gates, will together launch Breakthrough Energy Europe, a €100 million clean energy investment fund, next year. The fund will provide capital to companies that can deliver the innovations being developed by scientists and entrepreneurs to address climate change to the global market.
Naturvårdsverket (the Swedish Environmental Protection Agency) published a report on the environmental impact of Swedish consumption and investments, the most comprehensive yet on the issue on how these affect air pollution, climate emissions, resources, water and chemical uses in Sweden and abroad.
Meanwhile, property owner and fund manager Areim subscribed to a SEK 200m directed share issue by EcoDataCenter, making it the principal owner of the company, which is in the final stages of constructing the world’s first carbon-positive data centre and setting it on course for further expansion and consolidation (NordSIP).
Heard on E-Street
With 12 years to go to get climate change under control, according to the UN, investing in UN SDG-aligned countries, companies and products is much more complicated than first believed, creating the demand for evermore strong ESG-criteria focused research from financial institutions, argues EuroMoney CSR editor Helen Avery (EuroMoney). The World Wildlife Fund (WWF) is advancing the school of thought that ESG data should be considered as financial data rather than just a complement to the usual reporting requirements, given that it can materially impact profits, according to WWF sustainable finance engagement manager Keith Lee (The Edge Malaysia).
Canada’s Horizons ETFs Management launched the Horizons Global Sustainability Leaders Index ETF (ETHI), its first SRI themed fund seeking to replicate the performance of the Nasdaq Future Global Sustainability Leaders Index and giving investors access to a low-carbon footprint and SRI-screened passive global investment portfolio (Newswire). Robeco appointed Ed Collinge, formerly at Invesco, as Global Head of Insurance Strategy, where he will work with client teams globally on developing specific investment solutions, including sustainability solutions, for insurance clients (Institutional Asset Manager). Finally, in some good news, U.S. investors consider ESG factors across $12 trillion of professionally managed assets, representing a 38% increase since 2016 and 1 in 4 dollars/26% of the $46.6. trillion in total U.S. professional AUM, according to a new report from the US SIF Foundation (Environmental Leader).
Famous Last Words
“Brewing beer can be an energy-intensive outlay, which is why sustainability is embedded into every area of our business. It is not a bolt-on, it is every department’s responsibility: from my team in procurement, sourcing the best ingredients that are produced efficiently; to our brewmasters, and packaging and logistics team. We have a saying here: Sustainability is our business.” – Richard White, Vice President for procurement and sustainability with AB InBev Europe, the world’s leading brewer and company behind Stella Artois, Budweiser, Corona and Jupiler, among others, in an interview with Politico.
Happy “holistic” weekend,
Your NordSIP team
Image: (c) NosorogUA-shutterstock