Asset Managers and Researchers Join Sustainable SWFs

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    Stockholm (NordSIP) – Eight global asset managers announced on July 10th that they have founded the “One Planet Asset Managers Initiative”, to support the implementation of the One Planet Sovereign Wealth Fund Framework. The news was followed by an announcement from the Global Research Alliance for Sustainable Finance and Investment regarding the launch of the “One Planet Sovereign Wealth Funds Research Forum”.

    Following the adoption of the 2015 Paris Agreement in which parties committed collectively to mitigate the effects of climate change, the One Planet Summit was held on 12 December 2017. The Framework is the brainchild of French President Emmanuel Macron and was agreed by its member in July 2018.

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    Its six founding members were Abu Dhabi Investment Authority (ADIA), the Kuwait Investment Authority, the NZ Super Fund, NBIM, Saudi Arabia’s Public Investment Fund and the Qatar Investment Authority (QIA). Collectively, these sovereign wealth funds own assets worth a combined US$ 3 trillion.

    According to the Framework, the six founding One Planet SWF Working Group members committed to the three principles of alignment, ownership, and integration to accelerate the integration of climate change analysis into the management of large, long-term and diversified asset pools. Alignment requires members to build into decision-making climate change considerations, which are aligned with the SWFs’ investment horizons. The principle of ownership encourages companies to address material climate change issues in their governance, business strategy and planning, risk management and public reporting to promote value creation. Lastly, members are expected to integrate the consideration of climate change-related risks and opportunities into investment management to improve the resilience of long-term investment portfolios

    The eight Founding Members of the One Planet Asset Managers Initiative are Amundi, BlackRock, BNP Paribas Asset Management, Goldman Sachs Asset Management, HSBC Global Asset Management, Natixis Investment Managers, Northern Trust Asset Management, and State Street Global Advisors. They manage a combined US$15 trillion in AUM.

    The founding members of the One Planet SWF Working Group said: “We are pleased that the framework has been endorsed by this important group of global asset managers and believe this will play a key role in supporting the transition of large asset pools towards the active consideration of climate risks and opportunities.

    The Research Forum will support the One Planet Sovereign Wealth Funds by identifying and facilitating rigorous and impactful research projects relevant to the implementation of the One Planet SWF Framework, as well as providing training and capacity building for One Planet SWF members. There will also be a research dialogue where the latest research is shared with One Planet SWF members and One Planet Asset Managers members.

    “We applaud these SWFs for collaborating on climate change alignment,” said Dr Ben Caldecott, Co-Chair of GRASFI and Director of the Oxford Sustainable Finance Programme at the University of Oxford. “Given their size, influence, and long-term investment horizons, they are uniquely placed among asset owners to promote and implement the alignment of finance with the Paris Agreement on Climate Change.”

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