Versorgungsanstalt des Bundes und der Länder, Karlsruhe, Germany, hired Nordea Asset Management to managed €1.3 ($1.4 billion) in sustainable equities, according to a news release.
VBL said that as part of its fiduciary duty, it takes into account both financial concerns and the need for climate protection in its investment strategy.
Through the Nordea European stars equity strategy, NAM chooses companies that are industry leaders in carbon dioxide reduction and that offer innovative products contributing to a low-emission economy. On this basis, the strategy looks to offer both an attractive return relative to the MSCI Europe Climate Paris-aligned benchmark and a contribution to a more sustainable economy.
"Over the past three years, we have already reduced the CO2-intensity of our equities and corporate bonds by more than 25%,” said Michael Leinwand, VBL's chief investment officer, in the news release. “It is now important for us to continue on this CO2 reduction path.”
VBL has about €60 billion in assets, and is targeted toward employees in the German public sector.
