March 2022

UK pension funds increasingly look into impact investing

UK pension schemes seem to be taking impact investing increasingly into consideration, more specifically social infrastructure and affordable housing. According to a survey conducted by Pensions for Purpose and sponsored by Big Society Capital researching UK pension funds with total assets under management of around £150bn (€180bn), more than 50% of schemes hold some form of impact investment which focuses on positive social or environmental outcomes as well as financial returns. It also shows that 90% of respondents are looking to...

The Complex Formulas Of Responsible Investing

By William Baldwin Distinguishing good from evil on Wall Street is a challenge. Be grateful there are analysts doing most of the homework for you. An ethical portfolio excludes the shares of irresponsible companies. Which ones are those? Once upon a time that was a fairly simple matter. A handful of mutual funds had portfolios omitting certain industries, such as weapons, alcohol and tobacco. Today, separating good equities from sinful ones is an industry unto itself. There are thousands of analysts at work...

‘ESG is too important to ignore’: What a shift to green investments means for your pensions

‘ESG is too important to ignore’: What a shift to green investments means for your pensions

Pension schemes are being used to hit long-term Environmental, Social, and Governance (ESG) goals, which experts say may put your savings at risk. Pension schemes in the UK contain over £2.5trn of wealth, and the industry is considered a key part of the shift towards clean energy, according to the Government. It says pension schemes include the “largest single group of institutional investors in the UK, with significant influence over the flow of investments in the economy.” Coupled with their long-term investment...

February 2022

UK. Parliament pension fund makes ESG investments

The scheme’s annual report revealed that the fund is integrating environmental, social and governance issues throughout its investment process, while making a number of commitments to ESG-aligned mandates throughout the year to March 2021. Read also UK. DWP confirms GMP revaluation rate reduction First, the scheme invested in the BlackRock Global Renewable Power Infrastructure Fund III, making its first contribution in August 2020, with further capital calls made later in the year. Read also From human rights to recycling bins: how can...

From human rights to recycling bins: how can you define ‘ethical investing’?

Companies are facing increasing consumer and shareholder pressure to ensure the investments they make are ethical. But how do they define what’s ethical? Broadly, ethical investment is on the rise. According to the Responsible Investment Association Australasia (RIAA), about $1tn of the $2.24tn in managed funds is classified as responsible. That’s not just because Australians are becoming more aware of the impact their investments can have, but also because responsible or ethical investment is really starting to pay. Sustainable, environmentally...

Global Pension Assets Study – 2022

By Thinking Ahead Institute The Global Pension Assets Study estimates global pension fund assets across 22 major pension markets (the P22). These geographies now total a record US$56.6 trillion in pension assets and account for 76% of the GDP of these economies. The study, conducted by WTW and the Thinking Ahead Institute since the 1990s, includes an analysis of the seven largest markets (the P7): Australia, Canada, Japan, Netherlands, Switzerland, UK and US comprise 92% of total pension assets, unchanged...

Dutch pension fund PFZW to end investment in some fossil fuel companies

PFZW, the Dutch health care workers' pension fund, on Wednesday said it would disinvest from any fossil fuel company by 2024 that doesn't have a "convincing and verifiable" strategy to reach the goals laid out in the Paris Climate Change agreement. The decision by PFZW, with 278 billion euros ($316 billion) in assets, follows similar moves by other asset managers to overhaul the way they invest as part of a global efforts to reach net-zero carbon emissions by 2050. Some have...

Canada’s largest pension fund CPPIB takes engagement approach to net-zero

The Canada Pension Plan Investment Board, better known as CPP Investments or CPPIB, announced net-zero greenhouse gas (GHG) emission goals by 2050 through a decarbonisation approach focused on influencing transition within high-emitting sectors as opposed to divestment. Read also US. Pension plans increasing their focus on allocating to diverse asset managers The plan also includes increasing its investments into green and transition assets from $67 billion to $130 billion by 2030 and a carbon neutrality goal by the end of the...

How will the EU’s SFDR sustainability rules work?

Europe’s action plan on sustainable finance will accelerate the mobilisation of green finance and reinforce EU leadership in this area by being an example for regulators across the world that are looking at a standardised approach. Despite the challenges, the goal is to build a greener, more sustainable future, but it cannot be done without the weight of financial market participants being fully committed. Today, country and corporate carbon reduction plans are still far short of the 1.5C target under the...

ESG Vs. Impact Investing–Understanding Their Different Goals

The movement of investment capital into funds that seek to effect positive change has been substantial in recent years. Environmental, social and governance (ESG) assets rose to more than $35 trillion in 2020 to account for more than one-third of total global assets under management, according to the Global Sustainable Investment Alliance. This figure is expected to rise above $50 trillion by 2025. Despite this rapid growth, there remains deep skepticism about the effectiveness of the ESG framework. Some of...