Following the launch of a new initiative, funds like Cbus and Australian Ethical explain how they are working to reduce their portfolio emissions and engage with investee companies.
NZ Super's carbon exclusion policy has added demonstrable returns to its overall investment strategy while lowering portfolio risk, the sovereign wealth fund said in a new report.
The two asset owners are leading Asia Pacific efforts to adapt their portfolios in renewable energy-related assets to help mitigate climate policy risks.
A Calpers investment director and the former CIO of GPIF said policymakers should mandate disclosures and establish carbon emission targets, to embed climate change in investing.
Consolidation among ESG data providers is set to offer more rounded and uniform data in the coming few years, helping to create universal standards that spread the ideas even further.
Besides supporting pension funds in achieving their financial goals, impact investing can be an attractive way for pension funds to achieve the dual objectives of incorporating sustainability requirements into investments and providing diversification benefits, says Philipp Müller, BlueOrchard’s chief executive officer.