Karlsruhe, November 19, 2024 –Versorgungsanstalt des Bundes und der Länder (VBL) supports the global climate goals of the Paris Agreement. In line with its responsible investment strategy, VBL is entrusting Nordea Asset Management (NAM) with a €1.25 billion mandate with effect from 1 November 2024. This European equity portfolio will be managed relative to the MSCI Europe Climate Paris-aligned benchmark.

Climate change is one of the greatest global risks with many negative impacts on nature, society and the economy. CO2 emissions are a key factor contributing to it and therefore need to be reduced. As part of its fiduciary duty, VBL takes into account both financial aspects and climate protection in its investment strategy.

Dr. Michael Leinwand, VBL’s Chief Investment Officer, says: “Over the past three years, we have already reduced the CO2-intensity of our equities and corporate bonds by more than 25 per cent. It is now important for us to continue on this CO2 reduction path”.

The emissions from VBL’s equity and corporate bond portfolio are currently below the target set for 2025. By the end of 2025, the target is to be below 92 tons of CO2 equivalent per million euros of turnover.

“The mandate with Nordea Asset Management will help us deliver on this objective and offers long-term opportunities for a further reduction of our carbon-footprint” Dr. Michael Leinwand, VBL’s Chief Investment Officer.

In an intensive selection process, NAM best met VBL’s expectations.

“Nordea Asset Management convinced VBL with the breadth of its responsible investment team, efficient and risk-controlled investment processes and a clear climate strategy,” says Jan Obländer, responsible for asset manager selection at VBL.

With the Nordea European Stars Equity Strategy, NAM has a proven track record in choosing companies that are industry leaders in CO2 reduction and that offer innovative products contributing to a low-emission economy. On this basis, both an attractive return relative to the MSCI Europe Climate Paris-aligned benchmark can be expected and a contribution to a more sustainable economy can be achieved.

Christophe Girondel, Global Head of Distribution at NAM, is delighted with VBL’s trust and looks forward to working with them: “The fact that we can support VBL in the implementation of its sustainability strategy confirms to us that we are on the right track with our approach of reconciling climate objectives and investment performance.”

From the outset, the portfolio will have a positive impact on the overall carbon footprint of VBL’s investments. By managing the portfolio against the Paris-aligned benchmark, VBL is pursuing an ambitious CO2 reduction path that will reduce greenhouse gas emissions by seven percent annually.