French public sector pension fund allots $1.8 billion towards sustainable equity investment mandate
In a significant move towards sustainable investing, the public sector pension fund Ircantec based in Angers, western France, has chosen Nomura Asset Management to manage its $1.8bn sustainable equity mandate. This partnership was facilitated by Caisse des Dépôts, a leading institution known for managing large institutional funds with a dual mandate of generating optimal long-term financial returns and contributing to broad economic development, including sustainable investing goals.
Under the new mandate, Nomura Asset Management will manage a tailored sustainable equity fund, customised to align with Ircantec's commitment to reducing emissions by 7% per annum, encompassing Scope 3 emissions. The focus of the mandate is on investing in companies with a high positive total stakeholder impact.
Alex Rowe, Nomura's lead portfolio manager, emphasised that customisation was key to winning the deal. The mandate is a customised version of Nomura's existing Global Sustainable Equity Fund, which has been running for more than six years. The new mandate includes options for both an environmentally enhanced and a Sharia-compliant version, reflecting a trend within the sustainable investment industry towards working on a more bespoke, partnership basis.
Ircantec has pledged to align its portfolio with the targets set out in the Paris Agreement and has committed almost 20% of its portfolio to investments in the energy transition. The exact details of the partnership, such as structuring, customisation, and impact focus, are not extensively available in the public domain. For detailed information, it is recommended to consult directly with Ircantec, Nomura Asset Management, or Caisse des Dépôts press releases or financial disclosures for the latest updates.
This partnership marks a significant step forward for Ircantec in its commitment to sustainable investing, and it underscores the growing importance of customised sustainable investment solutions in the industry. As more institutions like Ircantec prioritise sustainability in their investment strategies, we can expect to see more partnerships like this one in the future.
The new mandate, managed by Nomura Asset Management, will focus on investing in companies with a high positive total stakeholder impact, aligning with Ircantec's business strategy of reducing emissions by 7% annually and committing to sustainable investing. This partnership between Ircantec and Nomura Asset Management, facilitated by Caisse des Dépôts, signifies a significant finance-driven move towards promoting business sustainability.
