Debevoise & Plimpton: Regulation is only one of the drivers for that change, but it is an increasingly significant one, and two recent developments are characteristic of the changing regulatory landscape. They also highlight an opportunity for private equity fund managers – many of whom are already focused on ESG (“environmental, social and governance”) considerations when making and managing portfolio investments.
IPE: Information about investments’ impact on society and the environment should be included in UK pension dashboards, a government-commissioned impact investing group has said.
IPE: Swedish state pension buffer fund AP1 has begun selling SEK407m (€38.6m) worth of equities and bonds of Brazilian mining company Vale, after the AP Funds’ Council on Ethics recommended the exclusion the company from the AP funds’ portfolios.
IPE: EU legislation aiming to increase the stability and sustainability of European companies “could fail” because of a lack of awareness and readiness on the part of investors, governments and regulators, Hermes Investment Management has suggested.
Expert Investor: German sustainable index constructor Solactive has announced a partnership with American data research group Truvalue.
Working in collaboration, the two companies are planning to create a new range of environmental, social and governance indices that use machine learning and artificial intelligence to score companies in their ESG credentials.
Financial Times: Less than one per cent of venture capital funds in the UK go to start-ups run entirely by women, government-commissioned research has found, revealing another yawning gender gap in the business world. The UK VC & Female Founders report for the Treasury discovered that for every £1 of VC investment, all-female founder teams get less than 1p. All-male founder teams get 89p and mixed-gender teams get 10p...
IFU: In June 2018, IFU signed an agreement with PKA, PensionDanmark, PFA, ATP, JØP/DIP, PenSam and Navest to establish the Danish SDG Investment Fund, which will support the UN Sustainable Development Goals through commercial investments. The total capital commitment in the first closing was DKK 4.1bn. In a second and final closing, commitments have been obtained from three additional investors: SEB Life & Pension, Secure SDG Fund and Chr. Augustinus Fabrikker Akts. With these three investors, the total commitment reached DKK 4.85bn, which is very close to the original target of DKK 5bn.
CityWire Selector: The new strategy will have an investment universe of 700 stocks across all geographies and sectors, made of global equities that best manage climate-related risks.
IPE: Dutch regulator De Nederlandsche Bank (DNB) has urged pension funds to map out social and ecological risks to their investments and minimise underlying problems if necessary.
IPE: The €409bn Dutch civil service scheme ABP has committed €500m to “green mortgages”, which come with a discount for energy-efficient residential property.
The discount would not only apply to purchased assets with the highest energy efficiency, but also to the mortgaged property after it has been converted to meet the requirements of energy label ‘A’ during the duration of the mortgage.
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