AP2, Gothenburg, Sweden, selected BlackRock to manage a 500 million Swedish kronor ($58 million) allocation to sustainable infrastructure, the pension fund said Wednesday.
The 421.2 billion kronor fund's investment in sustainable infrastructure will focus on renewable energy, electricity grids and battery storage in developing countries.
It is made through Climate Finance Partnership, which is managed by BlackRock. The firm partners with the governments of Germany, France and Japan and some impact organizations in the U.S. to make these investments.
At the end of 2019, AP2 introduced a strategic allocation to sustainable infrastructure, which promotes sustainable development in line with the 2015 Paris Agreement.
AP2 invests 27.5% of its assets in alternatives according to the latest report. The size of the strategic allocation to sustainable infrastructure was not immediately known.
"We are pleased to invest in the Climate Finance Partnership, which aims to make investments that have a positive impact on the climate and sustainable development and accelerate the global transition to a low-carbon economy. This aligns well with AP2's mission to promote sustainable development, without compromising the overall goal of a good return," Helena Olin, head of real assets at AP2, said in a news release.
