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.
Roy Swan, director, mission investments at the Ford Foundation, is helping The Church Commissioners for England set up a new impact fund to tackle its slavery legacy. He tells Top1000funds.com about how the fund will provide grants and make impact investments intended to increase access to capital for Black-led businesses.
Asia is going through its own sustainability journey, and it’s different from the transition pathways in Europe and North America. Robeco head of fixed income, Asia, Thu Ha Chow told the Top1000funds.com Fiduciary Investors Symposium in Singapore that this means investing in the region requires a unique, regional perspective.
When it comes to figuring out how a company will get to net zero and how their transition will be financed, more investors are making a distinction between emissions that are hard to abate, and emissions that are expensive to abate.
The $260 billion New York State Common Retirement Fund will divest and restrict approximately $26.8 million of corporate bonds and actively traded public equities in eight integrated oil and gas companies, including ExxonMobil; and is doubling its commitment to the Sustainable Investments and Climate Solutions program.
Asset owners are preparing their portfolios for the climate transition, reducing holdings in companies with high emissions and pledging billions to climate investments. But climate proofing portfolios is proving one of the most arduous and complex challenges investors have ever faced. Top1000funds.com takes a close look at the progress.
Risk-based divestments increased returns on Norges Bank Investment Management's equity portfolio by 0.07 per cent in 2023. Measuring the impact of its investment decisions, reported in NBIM's latest RI Report, is part of a concerted drive for greater transparency by the manager of Norway's Government Pension Fund Global.
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