AP7 increases size of green impact mandate by €48.5m

Sweden’s AP7 has increased the size of its green impact mandate by €48.5m.

It brings the total mandate value to €135.8m, which was awarded to Impax in 2018.
The mandate is aligned with AP7’s objectives to invest actively in ways that would likely advance environmental and sustainability goals. A key aspect of the mandate is for Impax to contribute as a strategic partner to AP7’s green impact objective.

The funds are invested in Impax’s Leaders Strategy, which has the objective of delivering sustainable, above market returns over the long-term by identifying mispriced companies that address several long-term macroeconomic themes: growing populations, rising living standards, increasing urbanisation, rising consumption and the depletion of limited natural resources.

Investments are made in companies which have more than 20 per cent of their underlying revenue generated by sales of environmental products or services in the energy efficiency, renewable energy, water, waste and sustainable food and agriculture markets.

AP7 senior portfolio manager, Hans Löfgreen, said: “We are pleased to increase the size of the mandate awarded to Impax. AP7 has the stated ambition to develop, together with managers, methods to measure the sustainability benefits of investments. We have been able to successfully partner with Impax to develop metrics and methodologies that measure the real-world impact of our investments.”

In addition, Impax head of sustainability, Lisa Beauvilain, said: “AP7 increasing the size of its mandate is testament to Impax’s unique approach and to the success of our long-term relationship with AP7.

“The two groups have embarked on a partnership project to help solve environmental challenges by working to develop thought-leadership across the investment community in relation to impact measurement and investing. Impax will further develop the measurement of the environmental impact of AP7’s Green Impact Mandate with the two organisations becoming dialogue partners.”

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