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.
Many investors are ridding their portfolios of assets that contribute to human suffering, but that may not go far enough. Tim Hodgson writes that a global fix requires something far more bold.
APG is one of the few large asset owners putting AI to work effectively in its investment process. Amanda White looks at how it is integrating machine learning and more to enhance decisions.
The C$337 billion CPPIB works towards a full understanding of its external managers’ strategies. These efforts, plus a customised fee structure, ensure a focus on long horizons.
The High-Level Expert Group’s 2018 report provides a range of recommendations for how Europe’s pension funds can better address the risks and opportunities ESG concerns pose for their portfolios.
The $225 billion CalSTRS is working towards adding six equities mandates that have a specific focus on sustainability. It will benchmark traditional managers against their ESG approaches.
A look at Corporate Knights’ 2018 ranking of the best companies for ESG reveals that they pay more in taxes, hire more women in executive roles, and generate more clean revenue than their peers.
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