Stockholm (NordSIP) – According to an announcement by Impax Asset Management, Sweden’s AP7 increased the size of its green impact mandate with the firm by SEK500 million.
Founded in 1998, Impax is a specialist asset manager investing in the transition to a more sustainable economy. As of 30 June 2020, the firm manages approximately SEK207 billion (£18.1 billion) in both listed and real asset strategies. Together with BNP Paribas Asset Management, with whom it partners on the distribution of its environmental strategies, the UK-based firm first received a mandate from AP7 in 2018. This latest top-up from AP7 is equivalent to an almost 50% increase to the existing mandate of SEK900 million.
“AP7 increasing the size of its mandate is testament to Impax’s unique approach and to the success of our long-term relationship with AP7,” said Lisa Beauvilain (Pictured), Head of Sustainability and ESG at Impax. “The two Groups have embarked on a partnership project to help solve environmental challenges by working to develop thought-leadership across the investment community in relation to impact measurement and investing. Impax will further develop the measurement of the environmental impact of AP7’s Green Impact Mandate with the two organisations becoming dialogue partners. Despite market volatility arising from the unfolding COVID-19 crisis, investor interest in positive environmental impact has remained robust with institutions seeking to align their assets with long term opportunities arising from the transition to a more sustainable economy.”
AP7 manages the default option within Sweden’s premium public pension system. It first allocated SEK758m (€73.5m) to Impax’ Leaders Strategy in 2018. The strategy invests in companies that contribute to solutions for climate and environmental problems. It is co-managed by Hubert Aarts, Co-Head of Listed Equities and Executive Director at Impax. It aims to deliver sustainable, above-market returns over the long-term by identifying mispriced companies that address several long-term macroeconomic themes: growing populations, rising living standards, increasing urbanisation, rising consumption and the depletion of limited natural resources. It invests in companies which have more than 20% of their underlying revenue generated by sales of environmental products or services in the energy efficiency, renewable energy, water, waste and sustainable food and agriculture markets.
“We are pleased to increase the size of the mandate awarded to Impax. AP7 has the stated ambition to develop, together with managers, methods to measure the sustainability benefits of investments,” added Hans Löfgreen, Senior Portfolio Manager at AP7. “We have been able to successfully partner with Impax to develop metrics and methodologies that measure the real-world impact of our investments.”