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.
Will long-term GDP growth behave like bacteria in a petri dish or rabbits on a deserted island? The answer has implications for investors attempting to construct sustainable portfolios.
The new head of Sweden’s AP4, Niklas Ekvall, is seeking opportunities in emerging-market debt and alternative assets, while looking to expand on an already lauded ESG integration.
The asset-management industry is still taking more active steps to address climate risk than asset owners are, an annual Asset Owners Disclosure Project benchmark report has found.
The $1.26 trillion GPIF fulfils stewardship duties by promoting engagement between its external asset managers and investee companies. Fund managers have stepped up their efforts in response.
A new set of US stewardship responsibilities for investors and a governance framework for listed companies, backed by some of the largest US-based asset owners and managers, is long overdue.
Potential deregulation will tempt investors away from ESG strategies in 2017. But MSCI advises that physical risks and Asian transitions show the wisdom of staying focused on the long term.
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