June 2023
26Jun

CEO of Malaysia’s largest pension fund warns body could divest from companies not committed to ESG goals

Even as Malaysian firms are encouraged to take a step-by-step approach towards achieving environmental, social and governance (ESG) compliance, they should not be disregarding ESG issues, or this could put them at risk of having the country’s largest pension fund withdraw its investments. In one of his strongest warnings issued to-date, Datuk Seri Amir Hamzah Azizan, chief executive of Malaysia’s Employment Provident Fund (EPF), said the fund will divest from companies not committed to ESG goals. Speaking at a session on...

June 26, 2023
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22Jun

ESG resolution round-up: US pension giants split on climate proposal at Japanese bank

Big US public pension funds are divided on the merits of a climate proposal filed at Mizuho Financial Group which calls on the Japanese “mega-bank” to issue and disclose a transition plan to align its lending and investments with the Paris Agreement.     Californian giants CalPERS and CalSTRS have pre-disclosed that they will vote against the resolution on Friday, despite supporting a similar request at the bank in 2020. But The Office of the New York City Comptroller, which oversees...

June 22, 2023
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20Jun

The politicisation of investments at US public funds

By Amanda White with Sarah Rundell The attempts by multiple Republican states to restrict where US pension funds can invest is symptomatic of bad governance. Top1000funds.com takes a deep dive into the quagmire of US state pension funds to assess the impact of partisan politics on the ability of CIOs to do their jobs. The analysis highlights the need for improved practices around delegated authority to prevent the politicisation of investments. So much has been written about the rise and fall...

June 20, 2023
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07Jun

US. DOL took thumb ‘off the scale’ in finalizing new ESG rule, official says

Despite mischaracterizations and political backlash, the Department of Labor's new rule permitting retirement plan fiduciaries to consider environmental, social and governance factors when selecting investments and exercising shareholder rights does not tip the balance in favor of ESG, a key department official said Tuesday. "The final rule that we put out, notwithstanding what you may have heard, doesn't require consideration of ESG, it doesn't mandate that every investment have an ESG score attached to it, it doesn't mandate that if...

June 7, 2023
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07Jun

U.K. pension funds slow to invest in biodiversity – report

U.K. pension funds are increasingly aware of biodiversity risks to their portfolios, but not many are investing in natural solutions, according to research from Pensions for Purpose released Monday. Commissioned by alternatives asset manager Gresham House, Pensions for Purpose asked 22 asset owners and investment consultants how much they incorporate biodiversity and natural capital in investment decisions. Participants included the £25 billion ($31 billion) National Employment Savings Trust, London, £35 billion Brunel Pension Partnership, Bristol, £15 billion London CIV, £35...

June 7, 2023
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05Jun

Green and sustainable investing: why asset managers need clear ESG definitions to aid fund sales, quash greenwashing

A lack of globally consistent and clear definitions of what “green” and “sustainable” actually mean when it comes to projects and investment products has imposed extra burdens on asset managers struggling to meet compliance requirements, according to Fidelity’s head of sustainable investing. Insufficient regulation of environment, social and governance (ESG) data and ratings providers also heightens concerns about greenwashing, the act of making unsubstantiated sustainability claims. “If you are selling a fund as a green fund, that means very different things...

June 5, 2023
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May 2023
24May

Asset owners, managers sign biodiversity pledge

Stichting Pensioenfonds ABP, Heerlen, Netherlands, joined 14 asset owners and managers signing the Finance for Biodiversity Pledge Monday to commemorate World Biodiversity Day. The pledge calls for signatories to commit to map their biodiversity impact, set goals and targets, and disclose the results before 2025, along with collaboration and engaging with companies to halt and reverse nature loss. The €480 billion ($528.9 billion) pension fund is now one of 140 signatories representing a collective €19.7 trillion in assets from 23 countries. Other...

May 24, 2023
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22May

US. Divesting fossil fuels looms larger for more funds

As the race toward renewable energy and away from fossil fuels to address climate change heats up, more pension funds may look at divestment, willingly or otherwise. According to a divestment commitment database maintained by Stand.earth, a climate action advocacy group, 1,591 organizations worldwide with a collective $40.51 trillion in assets have publicly committed to some level of fossil fuel divestment. Pension funds represent 11.7% of those commitments, compared with 35.8% from faith-based organizations, 15.7% from educational institutions and 11.9%...

May 22, 2023
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19May

UK. DC funds adoption of ESG investments accelerates

How defined contribution (DC) schemes invest has been a topic of much debate with various government consultations threatening change and offering opportunity in equal measure. The master trust sector clearly wishes to be seen to be driving forward the debate, aiming to set the investment agenda and also offer more sophisticated investments to members. With the news that there is a 66% chance we will pass the 1.5ºC global warming threshold between now and 2027 it is clear we need...

May 19, 2023
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12May

Impact investments meeting financial expectations, exit study finds

The majority of impact investments are meeting or exceeding financial performance expectations, according to a study released Wednesday by ICM Institute, a non-profit research arm of the Impact Capital Managers, an association of private capital funds, and global law firm Morrison Foerster. The report, "Alpha in Impact: Strengthening Outcomes: Impact and Financial Value at Exit," covers a sample of 230 exits from ICM members managing market-rate impact funds. It found that 65% of impact exits met or exceeded financial performance...

May 12, 2023
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