French government pension fund invests $1.8 billion in sustainable equity projects
Ircantec Signs €250 Million Sustainable Equity Mandate with Nomura Asset Management
Ircantec, the public sector pension fund based in Angers, western France, has signed a significant sustainable equity mandate with Nomura Asset Management. The mandate, worth €250 million, is a customised version of Nomura's existing Global Sustainable Equity Fund.
The mandate, launched in December 2024, focuses on investing in companies with high positive total stakeholder impact. This approach integrates environmental and social responsibility factors beyond pure financial return. The strategy was tailored for Ircantec to support the fund's individual goals and viewpoints.
Nomura's lead portfolio manager, Alex Rowe, emphasized the importance of customisation in winning the deal. "We are committed to working closely with our clients to understand their unique needs and objectives," said Rowe.
The mandate aligns its investment strategy with the emission reduction goals of the Paris Agreement, committing to a credible path toward significant carbon emission reductions. This approach aims to promote investments that contribute to the transition to a low-carbon economy while addressing total stakeholder value, including environmental and social impacts.
Ircantec has also pledged to reduce its emissions by 7% per annum, encompassing Scope 3 emissions. In addition, the pension fund has committed just under 20% of its portfolio to investments in the energy transition.
The mandate offers options for both an environmentally enhanced and a Sharia-compliant version, catering to different investor preferences and ethical considerations. The mandate is managed by a team within Nomura Asset Management, and the Japanese firm has been running its Global Sustainable Equity Fund for over six years.
Caisse des Dépôts, a French public financial establishment, has also signed a $1.8bn sustainable equity mandate, although the details of this mandate were not specified in the provided text.
[1] This mandate is classified as 'Article 9' under the EU Sustainable Finance Disclosures Regulation, indicating strong environmental or social objectives.
- Ircantec's €250 million sustainable equity mandate with Nomura Asset Management, launched in December 2024, will primarily involve investing in companies with high positive total stakeholder impact, utilizing technology to integrate environmental and social responsibility factors beyond just financial return, while also aligning with the emission reduction goals of the Paris Agreement.
- In the pursuit of reducing its emissions by 7% per annum, Ircantec has pledged a significant portion of its portfolio to investments in the energy transition, choosing to collaborate with Nomura Asset Management's technology-driven investment strategy, which offers both environmentally enhanced and Sharia-compliant investment options.
