Danish pensions administrator Industriens Pension announced today that it has awarded its largest ever external investment mandate to PIMCO. The new investment mandate is DKK 8.9 billion (US$1.3 billion), covering sustainable corporate bonds.
The mandate’s funds are invested in bonds from issuing companies that have a low environmental impact, demonstrate social responsibility and with strong governance attributes. Specifically, the issuers must contribute to one or more of the 17 categories of UN Sustainable Development Goals (SDGs). The UN SDGs set targets to achieve a broad range of aspirational goals, including ending poverty and hunger, improving education, and protecting the environment.
Over DKK 1 billion of the mandate is expected to be invested in green bonds. Industriens Pension anticipates that the CO2 emissions profile of the overall portfolio will be 50% less than the mandate’s benchmark. The firm is already an active investor in sustainable investments, with over DKK 10 billion invested in green energy, including renewable energy companies.
Commenting on the new mandate, Anders Ellegaard, Bond Manager at Industriens Pension said:
“When we change our largest external investment mandate, it is because we truly believe in the value of sustainable investment on several levels. Sustainability and solid, long-term returns are often very well linked if the investments are handled by a skilled manager.”