French government pension fund pledges over 1.8 billion dollars towards sustainable equity investment strategy
A significant investment agreement has been reached between Japanese firm Nomura Asset Management and French institution Caisse des Dépôts. The $1.8 billion sustainable equity mandate, signed in December 2024, represents a strategic partnership aimed at promoting sustainable and responsible investing.
Focus on Sustainability
The mandate is centered on sustainable equity investments, focusing on companies and strategies that align with environmental, social, and governance (ESG) criteria. The primary aim is to generate long-term financial returns while contributing positively to sustainability goals.
Customized Approach
The mandate is tailored to meet the specific sustainability preferences and investment objectives of Caisse des Dépôts. This customization likely involves selecting companies and sectors aligned with the client's values and strategic priorities, integrating ESG factors deeply into the investment process.
Commitment to Paris Agreement Targets
A key aspect of this mandate is its explicit alignment with the Paris Agreement goals. The investment approach includes commitment to limiting global warming to well below 2 degrees Celsius, ideally achieving net-zero greenhouse gas emissions. This means the portfolio is constructed and managed to support decarbonization pathways and sustainable development objectives consistent with international climate agreements.
Bespoke Options for Investors
Nomura's Global Sustainable Equity Fund offers options for an environmentally enhanced version and a Sharia-compliant version, catering to a wide range of investor preferences.
Ircantec's Green Commitment
Ircantec, a public sector pension fund based in Angers, western France, has also aligned its portfolio with the targets set out in the Paris Agreement. The fund has committed just under 20% of its portfolio to investments in the energy transition and has pledged to reduce its emissions by 7% per annum, encompassing Scope 3 emissions.
In conclusion, this sustainable equity mandate signifies a collective effort towards a greener future, demonstrating the growing trend within the industry towards a more bespoke, partnership approach to support individual goals and viewpoints. The strategic partnership between Nomura Asset Management and Caisse des Dépôts is a testament to the growing importance of sustainable investing in shaping a more sustainable world.
- As part of the strategic partnership, the sustainable equity mandate focuses on environmental, social, and governance (ESG) criteria, aiming to generate long-term financial returns while contributing to sustainability goals.
- Tailored to meet the specific sustainability preferences of Caisse des Dépôts, this mandate aligns with the Paris Agreement goals, committing to limit global warming and achieving net-zero greenhouse gas emissions.
- To cater to a wide range of investor preferences, Nomura's Global Sustainable Equity Fund offers environmentally enhanced and Sharia-compliant versions, further demonstrating the growing trend towards sustainable investing.
