German pension fund awards €1.25bn sustainable equity mandate
Versorgungsanstalt des Bundes und der Länder (VBL), a €60bn German pension fund for the public sector, has confirmed a €1.25bn sustainable equity mandate with Nordea Asset Management (NAM).
The mandate, effective 1 November 2024, aligns with VBL’s commitment to the Paris Agreement’s climate goals and its responsible investment strategy.
The European equity portfolio will track the MSCI Europe Climate Paris-aligned benchmark, with a target of reducing greenhouse gas emissions by 7% annually.
VBL’s CIO, Dr. Michael Leinwand, highlighted the fund’s progress, noting a 25% reduction in CO2 intensity across equities and corporate bonds over the past three years. “The mandate with Nordea Asset Management will help us deliver on our objective to further reduce our carbon footprint while maintaining attractive returns,” Leinwand said.
NZI DC Forum | Thursday 30 January | Stationer's Hall London | register here
Jan Obländer, VBL’s head of asset manager selection, praised NAM’s expertise in identifying companies leading in CO2 reduction and driving low-emission innovations: ""Nordea Asset Management convinced VBL with the breadth of its responsible investment team, efficient and risk-controlled investment processes and a clear climate strategy" he explained.
VBL,which manages €60bn and pays out close to €6bn in benefits to some 1.5m members in the German public sector is headquartered in Karlsruhe, the third largest city in the German state of Baden-Württemberg. The fund aims to reduce its CO2emissions to below 92 tons of CO2 equivalent per million euros of turnover by the end of 2025.
