The California State Teachers’ Retirement System (CALSTRS) pension fund is investing USD 450 million in Nordea Asset Management’s Global Stars Equity strategy. The fund managers pursue a sustainability-focused approach that incorporates ESG risk factors into all investment decisions.
The fund managers work with Nordea’s Responsible Investments team to ensure that companies are evaluated not only on financial criteria but also on their contribution to environmental, social and governance goals. The equity strategy is geared towards net zero in order to decarbonize customer portfolios. Compared to the benchmark, the carbon footprint is 61 percent lower than the MSCI All Country World Index, according to Nordea.
“Sustainable investing is an integral part of our Nordic DNA and we look forward to supporting CALSTRS with our distinctive investment approach to deliver responsible returns,” says Nils Bolmstrand, CEO of Nordea Asset Management.
Cooperation to reduce methane emissions
Nordea and CALSTRS have been working on a partnership for a year to encourage companies to join the Oil and Gas Methane 2.0 Partnership (OGMP), a framework to reduce global methane emissions. So far, 14 of the 65 invested companies have adopted the framework and agreed to a reduction of 45 percent by 2025 and 60 to 75 percent by 2030.
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“The sustainability-focused approach of the Global Stars Equity strategy is clearly aligned with our portfolio’s mandate. In addition, Nordea has been a valuable partner in our efforts to achieve a net-zero portfolio by 2050 or sooner,” says Kirsty Jenkinson, Investment Director at CALSTRS. The pension fund manages $344.9 billion in assets as of July 31, 2024 and says it is the world’s largest pension fund purely for teachers.
