Nordea Asset Management awarded GBP325m climate equity mandate

Nordea Asset Management – a specialist in sustainable and responsible investing – has been awarded a GBP325 million specialist climate and environment equity mandate from the Brunel Pension Partnership. 

The mandate, which sits within Brunel’s new sustainable equities offering, will be run by Thomas Sørensen and Henning Padberg – the managers behind Nordea’s Global Climate and Environment Strategy.  

Nordea Asset Management, which manages EUR233 billion and forms part of the largest financial services group in the Nordic region, has one of the longest track records in the climate solutions space – with its dedicated strategy run by Sørensen and Padberg launched almost 13 years ago. 

The Nordea portfolio targets three main investment areas in climate and environment – innovators within the alternative energy sector, companies aiming at resource efficiency, as well as adapters focusing on environment protection.  

“We are extremely pleased to have been appointed by the Brunel Pension Partnership,” Nils Bolmstrand, CEO of Nordea Asset Management, says. “Nordea has been at the forefront of investing in companies that are changing the world for the better and transitioning to a more sustainable society. We are at a crucial period for a global response to climate and environmental challenges, and we look forward to working with Brunel in pursuing a more sustainable world.” 

The Brunel investment is Nordea’s largest single climate and environment segregated mandate, while it is also the most sizable client mandate ever awarded to Nordea in the UK. Nordea’s UK business has expanded rapidly in recent years, following the success of the UK version of its renowned Stable Return Strategy. 

“The Brunel mandate is a testament to the continued trust UK investors are placing in Nordea. Building on the success of our GBP Diversified Return Strategy, we have expanded the reach of our range of specialist offerings to further meet the needs of our broad client base. These solutions include the Climate and Environment strategy, our ESG STARS equity and bond strategies, as well as our Alpha 10 and Alpha 15 multi-asset vehicles,” David Crawford, co-head of UK Institutional and Wholesale Distribution at Nordea Asset Management, comments. 

Sørensen and Padberg believe perception of ESG and the climate and environment space has evolved significantly over the past decade. 

“We have witnessed a massive shift within the corporate sector – where climate, environment, and sustainability have become major drivers of corporate strategy and product development,” Sørensen and Padberg explain. “While many climate and environment discussions remain political in nature, we believe consumers and corporates are a far more important driver today. Evolving consumer expectations are incredibly powerful and are powering the momentum in environmentally sustainable solutions.” 

Through its new portfolio, Brunel – the GBP30 billion amalgamation of ten likeminded Local Government Pension Scheme funds – seeks exposure to strategies targeting solutions to sustainability issues, as well as benefits to society as a whole. 

“We were delighted to find managers who share our understanding of sustainability, embedding it deep into their culture and investment processes,” David Jenkins, portfolio manager for Brunel’s Sustainable Equities Fund, adds. “This portfolio therefore meets our aspiration to go beyond traditional responsible investing and ensure that the managers are engaged with the companies and are investing in them for positive reasons, not simply focusing on negative exclusions.”