Private credit will play a vital role in accelerating the transition to a low-carbon economy.According to Rob Horn, global head of the Blackstone Credit Sustainable Resources Group, this role is set to get a whole lot bigger. Horn believes that credit will eventually supply as much as 60 per cent of the estimated $100 trillion needed to decarbonise economies around the world providing for a particularly attractive investment opportunity for private credit. An opportunity to drive attractive risk-adjusted returns, while potentially improving societal outcomes. In this exclusive fireside chat with Fiona Reynolds, chief executive of Conexus Financial and former head of the UN-supported Principles for Responsible Investment, Horn outlines Blackstone’s view on energy transition as a key investment theme for the firm; its approach to sustainable finance; and what is needed to encourage more institutional investors into this rapidly evolving space.
Divesting from the oil sector has been a boon for La Caisse’s performance, as the Canadian pension giant says its energy investments have earned billions in value-add compared to the benchmark since the inception of its climate strategy. Head of sustainability Bertrand Millot unpacks the fund’s approach in an interview with Top1000funds.com.
The $53.8 billion AP7 is using shareholder resolutions to push companies to reveal their true positions on the Paris agreement and other measures. Corporations are taking notice and changing.
Not only are pension funds bringing ESG factors into decision-making, they are also starting to call for guidance in their efforts, the International Organisation of Pension Supervisors writes.
LGPS funds have objectives aligned with many of the social issues that impact investing targets. This should make the trend popular within the scheme, once decision-makers are properly informed.
From the individual to the organisation to the industry as a whole, a belief that your objectives and your work have intrinsic value is essential to high performance and societal change.
Heightened awareness of the role of rain forests in global supply chains, and of the related risks, has led many large investors to join initiatives calling for an end to destruction of woodlands.
The NZ$33 billion NZ Super is looking to increase its exposure to equity factors and implement the next phase of its climate strategy, which includes decarbonising existing factor mandates.
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