News in brief - 12 February 2021

- Sweden’s AP2 has published its annual sustainability report, detailing the fund’s commitment to adapting its portfolio to the Paris Agreement.

AP2 has aligned its holding of global equities and corporate bonds so they are in line with the EU Paris-aligned Benchmark, resulting in the carbon footprint from the portfolios being reduced by around 70 per cent. It also noted that the fund had developed a strategy to work with human rights. Additionally, AP2 was included in the UN Principles for Responsible Investment ‘Leaders Group’ with the theme of climate reporting, and the fund was nominated by the International Corporate Governance Network for the Global Stewardship Disclosure Awards. 

- Pensioenfonds ING has reduced the CO2 footprint of its shares by more than 50 per cent.

At the beginning of 2020, the fund updated its Socially Responsible Investment Policy to focus on five themes: anti-corruption, human rights, labour rights, health, and climate and the environment. The reduction was due to the imposition of CO2 targets with regard to the share mandates for its external asset managers in Q4 2020. These were a 30 per cent CO2 reduction target for the passive equity strategies and a 25 per cent CO2 reduction target for low-volatility equity strategies. 

- Pension Insurance Corporation (PIC) has completed a second debt investment of £30m in Livin Housing Limited.

PIC has now invested £95m in the County Durham-based housing association, following an initial £65m debt investment in April 2019. The £30m in funding will be split into three tranches with drawdowns in 2021, 2022 and 2023, and maturities split between 2054 and 2059. “We are delighted to have secured this additional long-term funding,” said Livin executive director of finance and development, Sean Brodie. “The deferred element is particularly helpful as it provides us with certainty of future funding, at a known cost."

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