Food for Thought
Stockholm (NordSIP) – This (short) week, we looked at the new Operating Principles for Impact Management, an initiative launched by the in International Finance Corporation (IFC). The 9 principles are co-signed by 60 organisations worldwide including all Nordic development funds (Finnfund, Swedfund, Norfund and IFU), and are geared to addressing the US$ 2.5 trillion SDG shortfall.
The African Development Bank issued a €170 million sustainable bond in two tranches, one in SEK and one in NOK. The transaction was led by SEB. Investors included a blend of local asset managers and asset owners, such as AP3, AMF, the Church of Sweden, SPP / Storebrand, Handelsbanken AM, Nordea IM and SEB IM.
NordSIP also caught up with Fiona Manning from Aberdeen Standard Investments, who talked about governance challenges in Latin America. She illustrates her firm’s engagement process with vivid examples.
With Easter break upon us, you may like to take a few readings with you to enjoy while watching blossoms bloom. Have a look at our handbook on Sustainable Index Funds & ETFs, which provides key insights on various strategies. Henrik Wold Nilsen of SPP / Storebrand‘s explains why optimised index-based strategies are a cost-effective tool for climate-aware investors. State Street Global Advisors‘ Rakhi Kumar talks about mitigation and adaptation, the new frontier in climate investing. Lyxor‘s Carl-Christian Höeg provides us with crucial arguments about green bond investing through the ETF the firm recently launched on OMX Nasdaq.
Based on BlackRock‘s research we were able to retrace the history of ESG indices, a useful primer or reminder about the developments of this important aspect of sustainable investing. Following our visit to the Sustainable Investment Forum Europe earlier this year, we also reproduced the arguments of a panel dedicated to the new EC benchmark legislation. Interestingly, as dull as it may sound, the nitty-gritty work of lawmakers and index providers may actually change the way we think about climate investing for good.
Finally, don’t forget to read about what asset owners and fund selectors think about when considering sustainable indices or ETFs, check out what Nordea Life & Pension‘s Peter Sandahl thinks of the challenges of investing in the energy-transition, read a summary of MSCI‘s new research on ESG and equity risk/return and reflect on whatever happened to the Portfolio Decarbonisation Coalition… and what to do next.
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