Sweden's AP7 pours more assets in green impact mandate
Swedish public pension scheme AP7 has added a further SEK500m (€48.5m) to a green impact mandate run by Impax AM, whose distribution partner is BNP Paribas AM. The mandate, which started in 2018, is now worth SEK1.4bn (€135.8m). AP7 had first allocated SEK758m (€73.5m).
Impax Leader Strategy invests in companies involved in natural resources optimisation and addressing a number of long-term macro-economic trends such as demographics, life expectancy rise, galloping urbanisation, consumption rise, resource scarcity. Investments are made into alternative energies, energy efficiency, infrastructure and tech related to water, waste management, pollution monitoring, agriculture, sustainable food and forestry.
Lisa Beauvilain, head of sustainability and ESG at Impax, commented: “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.”
Hans Löfgreen, senior portfolio manager at AP7, added: “AP7 has the stated ambition to develop, together with managers, methods to measure the sustainability benefits of investments. We have been able to successfully partner with Impax to develop metrics and methodologies that measure the real-world impact of our investments.”