ESG Newsletter

Founded in 1904, PREVI (Caixa de Previdência dos Funcionários do Banco do Brasil) is one of the largest pension funds in Latin America with total assets of R$ 201.7 billion ($ 52.7 billion) and around 200,000 members as at December 31, 2018.

As one of the founding signatories to the UN PRI, PREVI is heavily involved with promoting responsible investment in South America. The Brazilian pension fund regularly organizes events with other institutional investors to share best practice, leading to the creation of best practice guide on ESG implementation for institutional investors.

Annual Report – 2018

ESG Integration Best Practice Guide (Portuguese only)

The West Midlands Pension Fund is an UK-based institution that forms part of the Local Government Pension System. As of March 31, 2019, the Pension Fund managed GBP 17.5 billion of assets on behalf of over 320,000 members.

The West Midlands Pension Fund considers responsible investment and climate change as guiding principles of its investment approach. The Pension Fund conducts specific due diligence on the ESG integration capabilities of external managers. Furthermore, it conducts corporate engagements and submits shareholder resolutions at portfolio companies. For the 2019 and 2020, the Fund focused on Climate Change, Sustainable Food Systems, Human Rights and Responsible Financial Management as its core focus for corporate engagements.

Annual Report – 2019

Responsible Investment Framework – 2020

Investment Strategy Statement – 2020

AP2 is one of five funds that act as a buffer in Sweden's national pension system. The Pension System was created in 1960, but it was not until 2001 that the current AP fund structure was established, allowing the AP funds to diversify their strategies. One of the key investment rules, set out by the Ministry of Finance, is to consider environmental and ethical matters without compromising the objective of attaining high returns. As of December 31 2019, AP2 had SEK 381.3 billion of assets under management (US$ 40 billion).

AP2's sustainability strategy seeks to integrate sustainability in all investment processes, actively seek investments that contribute to sustainable development, use dialogue as a tool, and seek to be a leader within sustainability. The fund's key focus areas are Climate, Corporate Governance, Diversity, and Human Rights. AP2 is invested in almost all asset classes. Particularly, AP2 allocates 3% of its assets to a Green Bond dedicated portfolio which is aligned to the UN Sustainable Development Goals. 

Sustainability Policy

Annual Report 2019

Sustainability Report 2019

Report on Human Rights 2019 

The Tara Health Foundation was established in 2014 by Dr. Ruth Shaber, the founder of Women’s Health Research Institute in Kaiser Permanente’s Northern California region. The Foundation's main areas of focus are U.S. Reproductive and Maternal Health, Equitable Workplaces, and Gender Lens Impact Investing. As of December 31st 2017, the Foundation had over US$ 83 million of assets under management.

The Tara Health Foundation has committed 100% of its capital to further its mission. As such, it invests solely in thematic funds focusing on Gender and Women issues. Furthermore, it provides grants to organizations researching how to invest for impact in U.S. Reproductive & Maternal Health, Equitable Workplaces, and Gender Issues.

Portfolio

Research and Tools

Established in 1921, the San Francisco Employees' Retirement System ("SFERS") administers two employee benefit programs for eligible San Francisco city and county employees. As of June 30, 2018, SFERS managed $24.3 billion of assets on behalf of 73,000 individuals.

In 2018, following pressure from board members, SFERS committed 5% of its assets to low carbon and ESG dedicated strategies, as well as progressively divesting from firms which presented high ESG risks. Furthermore, in 2019, they implemented a framework to manage the carbon risk in their portfolios which rests on 4 pillars: Invest in strategies aligned with the transition, Engage with companies and external managers, Divest companies with unmitigated ESG risks and Advocate policy for a sustainable financial system. Finally, SFERS announced last week a new Climate Action Plan to achieve net-zero emissions by 2050.

Climate Risk Strategy – 2019

Climate Action Plan – Net Zero by 2050

Established under its current form in 1998 following the merger of Pension Sampo and Pension Varma, the private insurance firm is one of the biggest private investors in Finland. As at December 31 2018, Varma had €44 billion of assets under management.

In 2015, Varma became the first Finnish pension fund to set a goal of carbon neutrality for its portfolios by 2035. Its Climate strategy includes setting stricter exclusionary screens for its listed equity and corporate bond portfolios related to Coal and Oil exploration, and increasing exposure to low-carbon firms across all asset classes (listed and private equity, index funds, corporate bonds and real estate) to align its portfolios with a 1.75 degree world.

Annual and CSR Report – 2018

Principles for Responsible Investment

Climate Policy – 2019

Established in 2012 following the sale of Vision TV (a multi-faith television channel), the Inspirit Foundation seeks to support young change leaders inclusion, and promote pluralism through media and arts. Further, its 2016-2021 strategic plan identified islamophobia and reconciliation as priority issues. The Foundation had CA$ 36.7 million of assets under management as December 31, 2017.

In 2016, the Inspirit Foundation committed to aligning its entire portfolio with its organizational values . As such, 20% of assets will be allocated to private investments contributing to an inclusive society through mission and program related investing. Remaining assets will be invested using positive screen, ESG analysis and moving towards a lower carbon portfolio. In 2018, the Inspirit Foundation has made strides by aligning 84% of its portfolio with the strategic plan.

Investment Policy Statement

Fully Committed – Our Roadmap Towards a 100% Impact Portfolio

Strategic Plan 2016-2021

First State Super was established in 1992 to provide public sector employees in New South Wales with superannuation and retirement services. The Superannuation scheme manages $100 billion of assets on behalf of 800,000 individuals as at January 21, 2020.

First State Super considers sustainability issues in the investment decision-making of all of its portfolios. Apart from the tobacco industry, the Super fund does not generally exclude sectors. Instead, it prefers to engage with portfolio companies to improve practices. Its Socially Responsible Investment funds have stricter exclusion policies on nuclear power (including uranium), armaments, gambling, alcohol, inhumane animal testing, logging (of old growth forests), pornography, and fossil fuels. Finally, in 2016, First State Super adopted a Climate Change Plan, which sets out their approach to carbon foot-printing, risk management, and scenario analysis.

Responsible Investment Policy

Responding to Climate Change: A Case Study

Established in 1997, the Canopus Foundation is a German private family foundation seeking to improve energy access, and promote education and science for a sustainable economy. 

The Foundation applies the Venture Philanthropy model, which seeks to apply the principles of Venture Capital investing to philanthropy, hence creating impact. Since 2017, the Canopus Foundation has built a portfolio of mission-related investments in partner companies in Germany, Senegal and Rwanda which seek to improve accessibility to water in Western Africa, for example.

Mission-related Investments Portfolio

The California Health Care Foundation was established in 1996, following the conversion of Blue Cross of California from a not-for-profit health plan to a for-profit corporation. The  Foundation seeks to improve access to coverage and care, to promote high-value care, and provide research, support health care journalism, train leaders, and develop cross-sector networks. As at December 31, 2018, the California Health Care Foundation had $808 million of assets under management.

In addition to conducting research and grant-making, the California Health Care Foundation has established the CHCF Health Innovation Fund, a program-related investment initiative, to support market-based solutions with the potential to improve access and health outcomes for Californians with low incomes. Investments must provide new or more timely access to 100,000 Californians and/or deliver $25M in annual cost savings to the California health care system.

On a Mission: Investing for US Health Impact in 2014

Investing in Health Care That Works for All Californians