AP3 invests in new credit fund that integrates sustainability analysis
The Third Swedish National Pension Fund (AP3) is pleased to announce that it has initiated a relationship with Generation Investment Management and has invested 50 million USD in Generation’s new Global Credit Fund (The Fund). The Fund has a focus on performing companies that require debt financing for growth purposes. The Fund seeks to build relationships with companies that are embracing sustainability challenges and opportunities, including the transfer to a low-carbon economy. Sectors in the Fund are expected to include energy efficiency, waste to energy, water treatment and solutions, healthcare and disposable and bio-based environment packages. AP3 is an anchor investor in the Fund.
- Generation has strong track record of integrating sustainability in investment decisions. This is an investment in companies with focus on sustainability challenges and opportunities, and that are typically unable to access the wider capital markets, says Kerstin Hessius, CEO AP3.
- This is a further step in AP3’s strategy to invest in sustainable investments. AP3 has previously invested in the World Bank Green Bonds and AP3 investments in sustainable fixed income totals 2 050 million SEK (~300 million USD) after this investment, she adds.
Generation Investment Management was co-founded in 2004 by Al Gore (who was awarded the Nobel Peace Prize two years later for his work in counteracting climate change) and David Blood, former Chief Executive Officer of Goldman Sachs Asset Management. Generation's investment approach is based on the idea that sustainability factors—economic, environmental, social and governance criteria—will drive a company's returns over the long term.
The World Bank Green Bond proceeds finance climate mitigation management and adaptation projects in countries where the World Bank is active. The Green Bonds support the financing of projects that help mitigate climate change and help countries adapt to the effects of climate change. Examples of projects are solar and wind installations; funding for new technologies that permit significant reductions in greenhouse gas emissions; greater efficiency in transportation, including fuel switching and mass transport; construction of energy-efficient buildings; carbon reduction through reforestation and avoided deforestation, protection against flooding (including reforestation and watershed management) and sustainable forest management and avoided deforestation.
For more information please contact:
Kerstin Hessius, CEO, telephone: 46 8 555 17 100, kerstin.hessius@ap3.se
Christina Kusoffsky Hillesöy, Head of Communications & Sustainable Investments,
telephone: 46 709 517 223, christina.hillesoy@ap3.se
AP3 is one out of five buffer funds within the Swedish National Pension System. The Fund has SEK 233 bn assets under management AS PER 31 December 2012. Read more about AP3 on www.ap3.se.
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